1964_COMPANIES_ORDINANCE — Page 319

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1984 Ed.]

Companies

(CAP. 32

61

(4) Where in pursuance of this section a company has re- deemed or is about to redeem any preference shares, it shall have power to issue shares up to the nominal amount of the shares redeemed or to be redeemed as if those shares had never been issued, and accordingly the share capital of the company shall not for the purposes of the Eighth Schedule be deemed to be increased by the issue of shares in pursuance of this subsection:

Provided that, where new shares are issued before the redemp- tion of the old shares, the new shares shall not, so far as relates to the Eighth Schedule, be deemed to have been issued in pursuance of this subsection unless the old shares are redeemed within 1 month after the issue of the new shares.

(5) The capital redemption reserve fund may, notwithstanding anything in this section. be applied by the company in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares.

Replaced, 80 of 1974, s. 7)

50. (1) Subject as provided in this section, it shall be lawful for a company to issue at a discount shares in the company of a class already issued:

Provided that-

(a) the issue of the shares at a discount must be authorized by resolution passed in general meeting of the company, and must be sanctioned by the court;

(b) the resolution must specify the maximum rate of discount

at which the shares are to be issued;

(c) not less than 1 year must at the date of the issue have elapsed since the date on which the company was entitled to commence business;

(d) the shares to be issued at a discount must be issued within I

month after the date on which the issue is sanctioned by the court or within such extended time as the court may allow..

(2) Where a company has passed a resolution authorizing the issue of shares at a discount, it may apply to the court for an order sanctioning the issue, and on any such application the court, if, having regard to all the circumstances of the case, it thinks proper so to do, may make an order sanctioning the issue on such terms and conditions as it thinks fit.

(3) Every prospectus relating to the issue of the shares must contain particulars of the discount allowed on the issue of the shares or of so much of that discount as has not been written off at the date of the issue of the prospectus. If default is made in complying with this subsection, the company and every officer of the company who is in default shall be liable to a default fine. (Amended, 80 of 1974, s. 8)

Eighth Schedule

Power to issue shares at

a discount. 192902494?