STATUTORY COMPANIES

201

the amount of the interest therein possessed by them respec-
tively to be entered in a book to be kept for the purpose, and
to be called “ The Register of Holders of Consolidated Stock”;
and such book shall be accessible at all reasonable times to the
several holders of shares or stock in the undertaking.’

Trusts should not be recognised by a statutory company,
whether by any entry in the register or in any other manner
see s. 20].

As regards transfers, subject to any provision in the special Transfers.
Act, shareholders have an absolute right of transfer [s. 14],
subject to all calls due on the shares having been paid, and
subject also to the restriction that, when a call has been
made, the shares cannot be transferred until it has been paid
fs. 16].

Transfers must be by deed; the deed must be duly stamped
and the consideration truly stated [s. 14}. Although a
statutory form of transfer is scheduled to the Act, the
common form of transfer (Form No. 16) is generally used and
invariably accepted. There is thus practical uniformity
in the form of transfers, whether a company be a statutory
company or not.

As to debenture bonds, the Companies Clauses Act, 1845,
authorises the borrowing of money on mortgage or bond
[s. 38], and the succeeding clauses define the form of the
bond and register and also define the form of transfer, which
differs from the common form used for stocks and shares.
I, AB. of in consideration of the sum of

paid by G. H., of do hereby
transfer to the said G. H. his executors administrators
and assigns a certain bond number made by
the Company to bearing
date the dav of for securing the
sum of and interest (or if such
transfer be by endorsement ‘the within security’) and
all my right estate and interest in and to the money
thereby secured. In witness whereof I have hereunto
set my hand and seal, etc., etc.

The creation of debenture stock in place of the borrowing
by mortgage or bond was allowed by the Companies Clauses
Act, 1863 (Part III).

A good many companies still exercise their borrowing
powers by the issue of debenture bonds, and it should be
particularly noted that the common form of transfer does
not apply to these.

Bonds.