744

SECRETARIAL PRACTICE
4. Every person whose name is entered as a member in the
register of members shall, without payment, be entitled to a certifi-
cate under the seal of the company specifying the share or shares
held by him and the amount paid up thereon, provided that in
respect of a share or shares held jointly by several persons the
company shall not be bound to issue more than one certificate, and
delivery of a certificate for a share to one of several joint holders
shall be sufficient delivery to all.

5. If a share certificate is defaced, lost, or destroyed, it may be
renewed on payment of such fee, if any, not exceeding one shilling,
and on such terms, if any, as to evidence and indemnity, as the
directors think fit.

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 45 (1) of the Act

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 at a fixed time in respect of that share, and the
company shall also have a lien 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.

9. For giving effect to any such sale the directors may authorise
some person to transfer the shares sold to the purchaser thereof
The purchase shall be registered as the holder of the shares com-
prised 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 exists 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 sale) be paid to the person entitled to the
shares at the date of the sale.