193437-1932-Supplementary-Draft-Bill--Companies — Page 37

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(3) The registrar of companies shall, on the delivery to him of the said statutory declaration, and, in the case of a company which is required by this section to deliver a statement in lieu of prospectus, of such a statement, certify that the company is entitled to commence business, and that certificate shall be conclusive evidence that the company is so entitled

(4) Any contract made by a company before the date at which it is entitled to commence business shall be provisional only, and shall not be binding on the company until that date, and on that date it shall become binding.

(5) Nothing in this section shall prevent the simul- taneous offer for subscription or allotment of any shares and debentures or the receipt of any money payable on application for debentures.

(6) If any company commences business or exercises borrowing powers in contravention of this section, every person who is responsible for the contravention shall, without prejudice to any other liability, be liable to a fine not exceeding five hundred dollars for every day during which the contravention continues.

(7) If a company fails to obtain a certificate to commence business within one year of the date of its incorporation, the registrar of companies shall send by registered post to the company at its registered office a letter calling upon the company to apply for the said certificate.

(8) If the company fails to obtain the said certificate within one month of the posting of the said letter, the registrar of companies shall publish in the Gazette notice to the effect that the company will be struck off the register if it fails to obtain the said certificate within two months after the publication of the said notice.

(9) If the company fails to obtain the said certificate within two months of the publication of the said notice, the registrar of companies shall strike the company off the register and shall publish in the Gazette a notification to the effect that the company has been struck off the register.

(10) Upon the publication in the Gazette of the said notification, the company shall be deemed to be dis- solved.

(11) If any company is struck off the register or dissolved under the provisions of this section, the court, on the application of the company or of any member or creditor thereof may, on any ground which may seem fit to the court, order that the company he restored to the register, either permanently or temporarily, and may make such restoration subject to any condition which may seem fit to the court.

(12) Upon the making of any such order, the com- pany shall be restored to the register and shall, subject to any order which the court may make, be deemed to have continued in existence as if it had not been struck off the register, and the court may give any directions which may seem necessary in the circumstances.

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