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(Section 37.)

(Section 37 )

Ch. 31. No. 1.] Companies.

consists in being a partner in a tirm, the nature and extent of the interest
of the firm, with a statement of all sums paid or agreed to be paid to him
or to the firm in cash or shares or otherwise by any person either to
induce him te become, or to qualify him as a director, or, otherwise for
services rendered by him or by the firm in connection with the promotion
or formation of the company.

16, If the prospectus invites the public to subseribe for shares in the
company and the share capital of the company is divided into different
classes of shares, the right of voting at meetings of the company conferred
by, and the rights in respect of capital and dividends attached to, the
several classes of shares respectively.

17. In the case of a company which has been carrying on business, or of
a business which has been carried on for less than three years, the length
of time during which the business of the company or the business to be
acquired, as the vase may be, has been carried on,

PART IL.
REPORTS TO BE SET OUT IN) PROSPECTUS.

lL. A report by the auditors of the company with respect to the profits
of the company in respect of each of the three financial years immediatelv
preceding the issue of the prospectus, and with respect to the rates of the
dividends, if any, paid by the company in respect of cach class of shares in
the company in respect of each of the said three years, giving particulars of
each such class of shares on which such dividends have been paid and
particulars of the cases in which no dividends have been paid in respect of
any class of shares in respect of any of those years, and, if no accounts have
been made up in respect of any part of the period of three years ending on
a date three months before the issue of the prospectus, containing a
statement of that fact.

2. Hf the proceeds, or any part of the proceeds, of the issue of the shares
or debenture: are or is to be applied directly or indirectly in the purchase
of any business, a report made by accountants who shall be named in the
prospectus upon the profits of the business in respect of each of the three
financial years immediately preceding the issue of the prospectus.

PART III.
PROVISIONS APPLYING TO Parts I. AND IT. oF SCHEDULE.

1, The provisions of this Schedule with respect to the memorandum and
the qualification, remuneration and interest of directors, the names,
descriptions and addresses of directors or proposed directors, and the
<unount or estimated amount of the preliminary expenses, shall not apply
in the case of a prospectus issued more than two years after the date
at which the company is entitled to commence business.

2. Every person shall for the purposes of this Schedule be deemed to be
a vendor who has entered into any contract, absolute or conditional, for