Companies. [Ch. 31. No. 1.

shares, the company shall not commence any business or
exercise any borrowing powers, unless —

(a) there has been delivered to the Registrar for
registration a statement in lieu of prospectus; and

(6) every director of the company has paid to the
company, on each of the shares taken or contracted to
be taken by him and for which he is liable to pay in
cash, a proportion equal to the proportion payable on
application and allotment on the shares payable in
cash; and

(c) there has been delivered to the Registrar for
registration a statutory declaration by the secretary or
one of the directors in the prescribed form that para-
graph (0) of this subsection has been complied with.

(3) The Registrar shall, on the delivery to him of the
said statutory declaration, and, in the case of a company
which is required by this section to deliver a statement in
lieu of prospectus, of such a statement, certify that the
company is entitled to commence business, and that certifi-
cate shall be conclusive evidence that the company is so
entitled.

(4) Any contract made by a company before the date
at which it is entitled to commence business shall be
provisional only, and shall not be binding on the company
until that date, and on that date it shall become binding.

(5) Nothing in this section shall prevent the simul-
taneous offer for subscription or allotment of any shares
and debentures or the receipt of any money payable on
application for debentures.

(6) If any company commences business or exercises
borrowing powers in contravention of this section, every
person who is responsible for the contravention shall, with-
out prejudice to any other liability, be liable to a fine of
two hundred and fifty dollars for every day during which the
contravention continues.

(7) Nothing in this section shall apply to—

(a) a private company; or

(6) a company registered before the 1st of January,
914.

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