CAP. 70]
Bank's lien on shares.
Enforcing lien by sale.
Application of proceeds of sale.
Validity of sales after forfeiture or for
enforcing lien;
The Hongkong and Shanghai Banking Corporation.
42. The bank shall have a first and paramount lien upon all the shares registered in the name of any shareholder (whether solely or jointly with others) and upon the proceeds of sale thereof, for his debts, liabilities and engagements, solely or jointly with any other person, to or with the bank, whether the period for the payment, fulfilment or discharge thereof has actually arrived or not; and such lien shall extend to all dividends from time to time declared in respect of such shares and to all moneys paid in advance of calls thereon. Unless otherwise agreed the registration of a transfer of shares shall operate as a waiver of the bank's lien (if any) on such shares.
43. For the purpose of enforcing such lien the board may sell the shares subject thereto in such manner as it thinks fit; but no sale shall be made until such time as the moneys are presently payable.
44. The net proceeds of any sale made after forfeiture or for enforcing a lien, and any such dividends, shall be applied in or towards satisfaction of the debts, liabilities, and engagements aforesaid, and the residue (if any) shall be paid to such shareholder, his executors, administrators or assigns or successors or to the person (if any) entitled by transmission to the shares.
45. (1) Upon any sale after forfeiture or for enforcing a lien in purported exercise of the powers hereinbefore given, the board or the manager of any establishment at which a register is kept may, after the execution of a document of transfer from the bank to the purchaser has been executed by the bank as transferor and by the purchaser as transferee, cause the purchaser's name to be entered, in respect of the shares sold, in that register in which the shares sold are entered, and the purchaser shall not be bound to see to the regularity of the proceedings or to the application of the purchase money, and after his name has been entered in the register aforesaid in respect of such shares the validity of the sale shall not be impeached by any person and the remedy (if any) of any person aggrieved by the sale shall be in damages only and against the bank exclusively.
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CAP. 70]
Bank's lien on shares.
Enforcing lien by sale.
Application of proceeds of sale.
Validity of sales after forfeiture or for
enforcing lien;
The Hongkong and Shanghai Banking Corporation.
42. The bank shall have a first and paramount lien upon all the shares registered in the name of any share- holder (whether solely or jointly with others) and upon the proceeds of sale thereof, for his debts, liabilities and engagements, solely or jointly with any other person, to or with the bank, whether the period for the payment, fulfilment or discharge thereof has actually arrived or not;, and such lien shall extend to all dividends from time to time declared in respect of such shares and to all moneys paid in advance of calls thereon. Unless otherwise agreed the registration of a transfer of shares shall operate as a waiver of the bank's lien (if any) on such shares.
43. For the purpose of enforcing such lien the board may sell the shares subject thereto in such manner as it thinks fit; but no sale shall be made until such time as the moneys are presently payable.
44. The net proceeds of any sale made after forfeiture or for enforcing a lien, and any such dividends, shall be applied in or towards satisfaction of the debts, liabilities. and engagements aforesaid, and the residue (if any) shall be paid to such shareholder, his executors, administrators or assigns or successors or to the person (if any) entitled by transmission to the shares.
45. (1) Upon any sale after forfeiture or for enforcing a lien in purported exercise of the powers hereinbefore given, the board or the manager of any establishment at which a register is kept may, after the execution of a docu- ment of transfer from the bank to the purchaser has been executed by the bank as transferor and by the purchaser as transferee, cause the purchaser's name to be entered, in respect of the shares sold, in that register in which the shares sold are entered, and the purchaser shall not be bound to see to the regularity of the proceedings or to the application of the purchase money, and after his name has been entered in the register aforesaid in respect of such shares the validity of the sale shall not be impeached by any person and the remedy (if any) of any person aggrieved by the sale shall be in damages only and against the bank exclusively.
362
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