193704-1932-Supplementary-Bill-read-a-second-time--Companies — Page 22

Special resolution

for reduction

of share capital. 19 & 20 Geo. 5, c. 23, 8. 55.

Application

to court for confirming order, objections

by creditors, and settle-

ment of list of objecting

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(d) The payment shall be made only for such period as may be determined by the court, and that period shall in no case extend beyond the close of the half year next after the haif year during which the works or buildings have been actually completed or the plant provid- ed:

(e) The rate of interest shall in no case exceed four per cent, per annum or such other rate as may for the time being be prescribed by the court:

(f) The payment of the interest shall not operate as a reduction of the amount paid up on the shares in respect of which it is paid: (g) The accounts of the company shall show the share capital on which, and the rate at which, interest has been paid out of capital during the period to which the accounts relate:

(2) If default is made in complying with proviso (g) to subsection (1) of this section, the company and every officer of the company who is in default shall be liable to a fine not exceeding five hundred dollars.

Reduction of Share Capital.

57.-(1) Subject to confirmation by the court, a company limited by shares or a company limited by guarantee and having a share capital may, if so authorised by its articles, by special resolution reduce its share capital in any way, and in particular, with. out prejudice to the generality of the foregoing power, may-

(a) extinguish or reduce the liability on any of its shares in respect of share capital not paid up; or

(b) either with or without extinguishing or reduc- ing liability on any of its shares, cancel any paid-up share capital which is lost or un- represented by available assets; or

(c) either with or without extinguishing or reducing liability on any of its shares, pay off any paid-up share capital which is in excess of the wants of the company,

and may, if and so far as is necessary, alter its memo- randum by reducing the amount of its share capital and of its shares accordingly.

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(2) A special resolution under this section is in this Ordinance referred to as 'a resolution for reducing share capital."

58.-(1) Where a company has passed a resolution for reducing share capital, it may apply by petition to the court for an order confirming the reduction.

(2) Where the proposed reduction of share capital involves either diminution of liability in respect of unpaid share capital or the payment to any shareholder of any paid-up share capital, and in any other case if the court so directs, the following provisions shail 19 & 20 Geo. 5, c. 23,

have effect, subject nevertheless to the next following s. 56.

subsection:-

creditors.

(a) Every creditor of the company who at the date fixed by the court is entitled to any debt or claim which, if that date were the com- mencement of the winding up of the company, would be admissible in proof against the company, shall be entitled to object to the reduction:

(b) The court shall settle a list of creditors sc entitled to object, and for that purpose shali ascertain, as far as possible without requiring an application from any creditor, the names

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