Companies. [Ch. 31. No. 1.

 

in every balance sheet of the company until the whole
amount thereof has been written off.

(2) If default is made in complying with this section,
the company and every officer of the company who is in
default shall be liable to a default fine.

47. (1) Subject as provided in this section, it shall not be
lawful for a company to give, whether directly or indirectly
and whether by means of a loan, guarantee, the provision
of security or otherwise, any financial assistance for the
purpose of or in connection with a purchase made or to be
made by any person of any shares in the company:

Provided that nothing in this section shall be taken to
prohibit

(a) where the lending of money is part of the ordinary
business of a company, the lending of money by the
company in the ordinary course of its business;

(b) the provision by a company, in accordance with
any scheme for the time being in force, of money for
the purchase by trustees of fully paid shares in the
company to be held by or for the benefit of employce.
of the company, including any director holding
salaried employment or office in the company ;

(c) the making by a company of loans to persons,
other than directors, bona tide in the employment of
the company with a view to enabling those persons to
purchase fully-paid shares in the company to be held
by themselves by way of beneficial ownership.

(2) The aggregate amount of any outstanding loans
made under the authority of provisos (6) and (c) to sub-
section (1) of this section shall be shown as a separate item
in every balance sheet of the company

(3) Ifa company acts in contravention of this section,
the company and every officer of the company who is in
default shall be lable to a fine of five hundred dollars.

Issue of redeemable preference shares and shares

at discount.
48. (1) Subject to the provisions of this section, a com-
pany limited by shares may, if so authorised by its articles

365

Prohibition
of provision

> of financial

assistance
by company
for purchase
of its own
shares,

Power to
issue re-
deemable
preference

» shares.