1912_COMPANIES_ORDINANCE__1911 — Page 117

COMPANIES.

No. 58 of 1911.

2191

(iv) An unregistered company shall, for the purposes of this Ordinance, be deemed to be unable to pay its debts :—

(a) if a creditor, by assignment or otherwise, to whom the com- pany is indebted in a sum exceeding 500 dollars then due, has served on the company, by leaving at its principal place of business, or by delivering to the secretary or some director, manager, or principal officer of the company, or by otherwise serving in such manner as the Court may approve or direct, a demand under his hand requiring the company to pay the sum so due, and the company has for 2 months after the service of the demand neglected to pay the sum, or to secure or compound for it to the satisfaction of the creditor;

(b) if any action or other proceeding has been instituted against any member for any debt or demand due, or claimed to be due, from the company, or from him in his character of member, and notice in writing of the institution of the action or proceeding having been served on the company by leaving the same at its principal place of business, or by delivering it to the secretary, or some director, manager, or principal officer of the company, or by other- wise serving the same in such manner as the Court may approve or direct, the company has not within 10 days after service of the notice paid, secured, or compounded for the debt or demand, or procured the action or proceeding to be stayed, or indemnified the defendant to his reasonable satisfaction against the action or pro- ceeding, and against all costs, damages, and expenses to be incurred by him by reason of the sanie ;

(c) if execution or other process issued on a judgment, decree, or order obtained in any Court in favour of a creditor against the company, or any member thereof as such, or any person authorised to be sued as nominal defendant on behalf of the company, is returned unsatisfied;

(d) if it is otherwise proved to the satisfaction of the Court that the company is unable to pay its debts.

(2) Nothing in this Part of this Ordinance shall affect the opera- tion of any enactment which provides for any partnership, associa- tion, or company, being wound up, or being wound up as a company or as an unregistered company, under any enactment repealed by this Ordinance except that references in any such first-mentioned enactment to any such repealed enactment shall be read as refer- ences to the corresponding provision (if any) of this Ordinance.