193704-1932-Supplementary-Bill-read-a-second-time--Companies — Page 36

Restrictions

on com-

mencement

of business.

19 & 20 Geo. 5, c. 23, s. 94.

1562

(4) If a company fails to comply with any of the provisions of sub-sections (1) and (2) of this section, the company shall be liable to a fine not exceeding five hundred dollars,

(5) If a director, manager, or officer of a company, or any person on its behalf-

(a) uses or authorises the use of any seal pur- porting to be a seal of the company whereon its name is not so engraven as aforesaid;

or

(b) issues or authorises the issue of any notice, advertisement, or other official publication of the company, or signs or authorises to be signed on behalf of the company any bill of exchange, promissory note, endorsement, cheque, or order for money or goods, wherein its name is not mentioned in manner afore- said; or

(c) issues or authorises the issue of any bill of parcels, invoice, receipt, or letter of credit of the company, wherein its name is not mentioned in manner aforesaid;

he shall be liable to a fine not exceeding five hundred dollars and shall further be personally liable to the holder of the bill of exchange, promissory note, cheque, or order for money or goods, for the amount thereof, unless it is duly paid by the company.

Restrictions on Commencement of Business,

94.-(1) Where a company having a share capital has issued a prospectus inviting the public to subscribe for its shares, the company shall not commence any business or exercise any borrowing powers unless-

(a) shares held subject to the payment of the

whole amount thereof in cash have been allotted to an amount not less in the whole than the minimum subscription; and

(b) every director of the company has paid to the company, on each of the shares taken or contracted to be taken by him and for which he is liable to pay in cash, a proportion equati to the proportion payable on application and allotment on the shares offered for public subscription; and

(c) there has been delivered to the registrar of companies for registration a statutory declaration by the secretary or one of the directors, in the prescribed form, that the aforesaid conditions have been complied with.

(2) Where a company having a share capital has not issued a prospectus inviting the public to subscrioe for its shares, the company shall not commence any business or exercise any borrowing powers, unless--

(a) there has been delivered to the registrar of companies for registration a statement in lieu of prospectus; and

(b) every director of the company has paid to the company, on each of the shares taken or con- tracted to be taken by him and for which he is liable to pay in cash, a proportion equal to the proportion payable on application and allotment on the shares payable in cash; and (c) there has been delivered to the registrar of companies for registration a statutory declara- tion by the secretary or one of the directora in the prescribed form that paragraph (b) of this subsection has been complied with.