COMPANIES.
Power to Compromise.
No. 58 of 1911.
2141
tors and
c. 69 s. 120.
121.-(1) Where a compromise or arrangement is proposed between a company and its creditors or any class of them, or between the company and its members or any class of them, the Court may, on the application in a summary way of the company or of any creditor or member of the company or, in the case of a company being wound up, of the liquidator, order a meeting of the creditors or class of creditors or of the members of the company or class of members, as the case may be, to be summoned in such manner as the Court directs.
(2) If a majority in number representing three-fourths in value of the creditors or class of creditors, or members or class of members, as the case may be, present either in person or by proxy at the meeting, agree to any compromise or arrangement, the compromise or arrangement shall, if sanctioned by the Court, be binding on all the creditors or the class of creditors, or on the members or class of members, as the case may be, and also on the company or, in the case of a company in the course of being wound up, on the liquidator and contributories of the company.
(3) In this section "company" means any company liable to be wound up under this Ordinance.
Meaning of "Private Company."
122.-(1) For the purposes of this Ordinance "private company" means a company which by its articles-
(a) restricts the rights to transfer its shares; and
(b) limits the number of its members (exclusive of persons who are in the employment of the company) to 50; and
(c) prohibits any invitation to the public to subscribe for any shares or debentures of the company.
(2) A private company may, subject to anything contained in the memorandum or articles, by passing a special resolution and by filing with the Registrar of Companies such a statement in lieu of prospectus as the company, if a public company, would have had to file before allotting any of its shares or debentures, together with such a statutory declaration as the company, if a public company, would have had to file before commencing business, turn itself into a public company.
* As amended by No. 16 of 1912.
**
Meaning of "private company." ib. s. 121.
*
COMPANIES.
Power to Compromise.
No. 58 of 1911.
2141
tors and
c. 69 s. 120.
121.-(1) Where a compromise or arrangement is proposed be- Power to tween a company and its creditors or any class of them, or between with credi-
compromise the company and its members or any class of them, the Court
may, members. on the application in a summary way of the company or of any 8 Edw. 7 creditor or member of the company or, in the case of a company being wound up, of the liquidator, order a meeting of the creditors or class of creditors or of the members of the company or class of members, as the case may be, to be summoned in such manner as the Court directs.
(2) If a majority in number representing three-fourths in value of the creditors or class of creditors, or members or class of mem- bers, as the case may be, present either in person or by proxy at the meeting, agree to any compromise or arrangement, the compromise or arrangement shall, if sanctioned by the Court, be binding on all the creditors or the class of creditors, or on the members or class of members, as the case may be, and also on the company or, in the case of a company in the course of being wound up, on the liquidator and contributories of the company.
(3) In this section "company wound up under this Ordinance.
means any company liable to be
Meaning of "Private Company.'
122.-(1) For the purposes of this Ordinance "private company means a company which by its articles-
(a) restricts the rights to transfer its shares; and
(b) limits the number of its members (exclusive of persons who are in the employment of the company) to 50; and
(e) prohibits any invitation to the public to subscribe for any shares or debentures of the company.
(2) A private company may, subject to anything contained in the memorandum or articles, by passing a special resolution and by filing with the Registrar of Companies such a statement in lieu of prospectus as the company, if a public company, would have had to file before allotting any of its shares or debentures, together with such a statutory declaration as the company, if a public company, would have had to file before commencing business, turn itself into a public company.
* As amended by No. 16 of 1912.
**
Meaning of "private company." ib. s. 121.
*
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