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that the debentures are thereby made irredeemable or redeemable only on the happening of a contingency, however remote, or on the expiration of a period. however long, any rule of equity to the contrary notwithstanding.
76.--(1) Where either before or after the com- Power to mencement of this Ordinance a company has redeemed re-issue any debentures previously issued, then-
redeemed debentures
cases.
(a) unless any provision to the contrary, whether in certain
express or implied, is contained in the articles 19 & 20 Geo. or in any contract entered into by the com- 5, c. 23, pany; or
(b) unless the company has, by passing a resolu- tion to that effect or by some other act, manifested its intention that the debentures shall be cancelled,
the company shall have, and shall be deemed always to have had, power to re-issue the debentures, either by re-issuing the same debentures or by issuing other debentures in their place.
(2) On a re-issue of redeemned debentures the person entitled to the debentures shall have, and shall be deemed always to have had, the same priorities as if the debentures had never been redeemed.
(8) Where a company has power to re-issue deben- tures which have been redeemed, particulars with respect to the debentures which can be so re-issued shall be included in every balance sheet of the com- pany.
(4) Where a company has either before or after the passing of this Ordinance deposited any of its deben- tures to secure advances from time to time on current account or otherwise, the debentures shall not be deemed to have been redeemed by reason only of the account of the company having ceased to be in debit whilst the debentures remained so deposited.
(5) The re-issue of a debenture or the issue of another debenture in its place under the power by this section given to, or deemed to have been possessed by, a company, whether the re-issue or issue was made before or after the passing of this Ordinance, shall
s. 75.
be treated as the issue of a new debenture for the Ordinance purposes of stamp duty, but it shall not be so treated No. 8 of for the purposes of any provision limiting the amount 1921. or number of debentures to be issued:
Provided that any person lending money on the security of a debenture re-issued under this section which appears to be duly stamped may give the deben- ture in evidence in any proceedings for enforcing his security without payment of the stamp duty or any penalty in respect thereof, unless he had notice or, but for his negligence, might have discovered, that the debenture was not duly stamped, but in any such case the company shall be liable to pay the proper stamp duty and penalty.
(6) Where any debentures which have been re- deemed before the date of the commencement of this Ordinance are re-issued subsequently to that date, the re-issue of the debentures shall not prejudice any right or priority which any person would have had under or by virtue of any mortgage or charge created before the date of the commencement of this Ordin- ance, if section one hundred and six of the Companies Ordinance Ordinance, 1911, as originally enacted, had been No. 58 of enacted in this Ordinance instead of this section.
1911.
77. A contract with a company to take up and Specific pay for any debentures of the company may be performance enforced by an order for specific performance.
of con-
tracts to
subscribe for debentures. 19 & 20 Geo.
5, c. 23, J. 76.
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