RECONSTRUCTION

225
not, however, cover the case of an amalgamation by the
purchase of the shares of a company. The Act of 1929
's. 150] restricts the payment of such compensation by making
it unlawful to make any such payment in connection with (1)
the transfer of the whole or any part of the undertaking or
property of a company, or (2) the transfer of all or any of its
shares as the result of any offer to the general body of the
shareholders unless proper disclosure has been made to the
shareholders, and in the former case, the proposal has been
approved by the company in general meeting. The section
also contains provisions preventing an evasion of the section
and making any director receiving an illegal payment trustee
of the amount received for the company or for the share-
holders who sell their shares as the result of the offer, as the
case may be.