Secretarial practice

Bibliographic data

Monograph

Identifikator:: 1828236004

URN:: urn:nbn:de:zbw-retromon-249926

Document type:: Monograph

Title:: Secretarial practice

Edition:: fourth edition

Place of publication:: Cambridge

Publisher:: W. Heffer & Sons Ltd

Year of publication:: 1930

Scope:: viii, 987 Seiten

Digitisation:: 2022

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter IX. Other matters relating to shares

Collection:: Economics Books

OTHER MATTERS RELATING TO SHARES 97 under (i) (above), where there is a public issue, and with the conditions under (ii) (above), where there is not a public issue. The following points are to be noticed as regards under- writing generally: The commission may be paid in consideration of (a) an absolute subscription, 7.e. in effect shares may be issued firm at a discount (see below); or (b) a conditional subscrip- tion, 7.e. underwriting; or (c¢) an agreement to procure either form of subscription, 4.e. an overriding commission. Not only may shares not be applied, but the proceeds of shares issued may not be used, in payment of commission, unless the terms of the Act are complied with [Shoris v. Colwill (1909), 101 L.T. 5098]. Options to subscribe additional shares at par or at a premium price in consideration of subscribing part of the capital of a company are not affected by the Act. Such options are not an application of the shares or capital money of the companv within the prohibition [Hilder v. Dexter (1902), A.C. 474]. Under the Act of 19o8 shares could not be issued at a Issues at a discount except in so far as the payment of a commission in Discount. consideration of an absolute subscription was authorised by the Act [Ooregum Gold Co. v. Roper (1892), A.C. 125], and a colourable attempt to issue shares at a discount, purporting to be merely the payment of a commission as authorised by the Act, was restrained [Keatinge v. Paringa Consolidated Mines (1902), W.N. 15]. Under the Act of 1929 (s. 47) shares can be issued at a discount subject to the following conditions: (i) The shares issued must be shares of a class already issued. No such issue can be made until one year has elapsed from the date on which the companv was entitled to commence business. (iy The issue must be authorised by resolution of the company in general meeting and the resolution must specify the maximum rate of discount. (iv) The issue must be sanctioned by the Court. (v) The issue must be made within one month after the sanction of the Court is obtained or within such extended time as the Court may allow. Where an issue of shares can be underwritten for a com- mission of ten per cent. or less, it is unlikely that recourse will be had to this section as the desired result can be achieved under s. 43 without recourse to the Court.

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