Companies. |Ch. 31. No. 1.

 

 

and, if any such money is not so repaid within forty-eight
days after the issue of the prospectus, the directors of the
company shall be jointly and severally liable to repay that
money with interest at the rate of six per cent. per annum
from the expiration of the forty-eighth day:

Provided that a director shall not be liable if he proves
that the default in the repayment of the money was not due
(o any misconduct or negligence on his part.

(5) Any condition requiring or binding any applicant
for shares to waive compliance with any requirement of this
section shall be void.

(0) This section, except subsection (3) thereof, shall
not apply to any allotment of shares subsequent to the first
allotment of shares offered to the public for subscription.

42. (1) A company having a share capital which does not
issue a prospectus on or with reference to its formation, or
which has issued such a prospectus but has not proceeded
to allot any of the shares offered to the public for subserip-
tion, shall not allot any of its shares or debentures unless at
least three days before the first allotment of cither shares or
debentures there has been delivered to the Registrar for
revistration a statement in licu of prospectus, signed by
every person who is named therein as a director or a proposed
director of the company or by his agent authorised in
writing, in the form and containing the particulars set out
in the lifth Schedule to this Ordinance.

(2) This section shall not apply to a private company.
(3) Ifa company acts in contravention of this section
the company and every director of the company who

knowingly authorises or permits the contravention shall be
lable to a fine of five hundred dollars.

43. (1) An allotment made by a company to an applicant
in contravention of the provisions of the two last foregoing
sections of this Ordinance, shall be voidable at the instance
of the applicant within one month after the holding of the
statutory meeting of the company and not later, or, in any
case where the company is not required to hold a statutory
meeting, or where the allotment is made after the holding
of the statutory meeting, within one month after the date of

361

Prohibition
of allotment
in certain
cases unle.
statement in
lieu of
prospecltts
delivered to
Repistrar.

Ettect o1
irregular
allotment.