Companies. [Ch. 31. No. 1.

521

 

6. No part of the funds of the company shall directly or indirectly be
employed in the purchase of, or in loans upon the security of, the company’s
shares, but nothing in this regulation shall prohibit transactions mentioned
in the proviso to section 47 (1) of the Ordinance.

Lien.

7. The company shall have a lien on every share (not being a fully paid
share) for all moneys (whether presently payable or not) called or payable
ata fixed time in respect of that share, and the company shall also have
«tien on all shares (other than fully paid shares) standing registered in the
name of a single person for all moneys presently payable by him or his
estate to the company; but the directors may at any time declare any
share to be wholly or in part exempt from the provisions of this regulation.
The Company’s lien, if any, on a share shall extend to all dividends
payable thereon.

8. The company may sell, in such manner as the directors think fit, any
shares on which the company has a lien, but no sale shall be made unless
some sum in respect of which the lien exists is presently payable nor until
the expiration of fourteen days after a notice in writing, stating and
demanding payment of such part of the amount in respect of which the
lien exists as is presently payable, has been given to the registered holder
for the time being of the share, or the person entitled thereto by reason of
his death or bankruptcy.

For giving effect to any such sale the directors may authorise some
person to transler the shares sold to the purchaser thereof. The purchaser
shall be registered as the holder of the shares comprised in any such
transfer and he shall not be bound to see to the application of the purchase
money, nor shall his title to the shares be affected by any irregularity or
invalidity in the proceedings in reference to the sale.

10, The proceeds of the sale shall be received by the company and
applied in payment of such part of the amount in respect of which the lien
¢xists as is presently payable, and the residue shall (subject to a like lien
for sums not presently payable as existed upon the shares prior to the
‘ale) be paid to the person entitled to the shares at the date of the sale.

Calls on share-.

11. The directors may from time to time make calls upon the members
in respect of any moneys unpaid on their shares provided that no call shall
exceed one-fourth of the nominal amount of the share, or be payable at
less than one month from the last call; and each member shall (subject
to receiving at least fourteen days’ notice specifying the time or times of
payment) pay to the company at the time or times so specified the
amount called on his shares.

12. The joint holders of a share shall be jointly and severally liable to
pay all calls in respect thereof.

13. If a sum called in respect of a share is not paid before or on the day
appointed for payment thereof, the person from whom the sum is due shall