Companies. [Ch. 31. No. 1.

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(b) no such payment, whether authorised by the
articles or by special resolution, shall be made without
the previous sanction of the Court obtained on petition;

(c) before sanctioning any such payment the Court
may, at the expense of the company, appoint a person
to inquire and report to it as to the circumstances of
the case, and may, before making the appointment,
require the company to give security for the payment
of the costs of the inquiry;

(d) the payment shall be made only for such period as
may be determined by the Court, and that period shall
in no case extend beyond the close of the half year next
after the half year during which the works or buildings
have been actually completed or the plant provided;

(e) the rate of interest shall in no case exceed six
per cent. per annum or such other rate as may for the
time being be ordered by the Court;

Y) the payment of the interest shall not operate as a
reduction of the amount paid up on the shares in respect
of which it is paid;

(g) the accounts of the company shall show the share
capital on which, and the rate at which, interest has
been paid out of capital during the period to which the
accounts relate.

(2) If default is made in complying with proviso (g)

to subsection (1) of this section, the company and every
officer of the company who is in default shall be hable to a
fine of two hundred and fifty dollars.

Reduction of share capital.

57. (1) Subject to confirmation by the Court, a company
limited by shares or a company limited by guarantee and
having a share capital may, if so authorised by its articles,
by special resolution reduce its share capital in any way,
and in particular, without prejudice to the generality of the
foregoing power, may—

(a) extinguish or reduce the liability on any of its
shares in respect of share capital not paid up; or
(5) either with or without extinguishing or reducing
liability on any of its shares, cancel any paid-up share
24 (2)

Special
resolution
for reduction
of share
capital.