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SECRETARIAL PRACTICE
b)

issues or authorises the issue of any notice, advertisement,
or other official publication of the company, or signs or
authorises to be signed on behalf of the company any
bill of exchange, promissory note, endorsement, cheque,
or order for money or goods, wherein its name is not men-
tioned in manner aforesaid; or

issues or authorises the issue of any bill of parcels, invoice,
receipt, or letter of credit of the company, wherein its
name is not mentioned in manner aforesaid:

lc)

he shall be liable to a fine not exceeding fifty pounds, and shall
further be personally liable to the holder of the bill of exchange,
promissory note, cheque, or order for money or goods, for the
amount thereof, unless it is duly paid by the company.

Restrictions on Commencement of Business,

Restrictions on
commencement
of business.

94.—(1) Where a company having a share capital has issued a
prospectus inviting the public to subscribe for its shares, the company
shall not commence any business or exercise any borrowing powers
anless—

(a) shares held subject to the payment of the whole amount
thereof in cash have been allotted to an amount not less
in the whole than the minimum subscription; and
every director of the company has paid to the company,
on each of the shares taken or contracted to be taken by
him and for which he is liable to pay in cash, a proportion
equal to the proportion payable on application and allot-
ment on the shares offered for public subscription; and
there has been delivered to the registrar of companies for
registration a statutory declaration by the secretary or
one of the directors, in the prescribed form, that the afore-
said conditions have been complied with.

(2) Where a company having a share capital has not issued a
prospectus inviting the public to subscribe for its shares, the com-
pany shall not commence any business or exercise any borrowing
powers, unless—

(a) there has been delivered to the registrar of companies for

registration a statement in lieu of prospectus; and

every director of the company has paid to the company,
on each of the shares taken or contracted to be taken by
him and for which he is liable to pay in cash, a proportion
equal to the proportion payable on application and allot-
ment on the shares payable in cash; and

there has been delivered to the registrar of companies for
registration a statutory declaration by the secretary or
one of the directors in the prescribed from that paragraph
(b) of this subsection has been complied with.