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 VI. Prospectus and allotment

Collection:: Economics Books

16 SECRETARIAL PRACTICE minimum subscription as a condition precedent to allotment and in. insisting that a company should not commence business unless shares held subject to the payment of the whole amount thereof in cash had been allotted to an amount not less than the minimum subscription was presumably to ensure that a company should have adequate means for its intended operations; but as under that Act the minimum subscription could be fixed at seven shares, that object was not necessarily attained. The Companies Act, 1928 (see s. 35), altered the law in this respect and now (under s. 39 of the Companies Act, 1929), before any allotment is made of any share capital offered to the public for subscription there must have been subscribed— (a) the amount stated in the prospectus as the minimum amount which in the opinion of the directors must be raised by the issue of share capital to provide for (i) the purchase price of any property purchased or to be purchased which is to be defrayed in whole or in part out of the proceeds of the issue. (ii) any preliminary expenses or underwriting com- mission payable by the company. (iii) the repayment of any moneys borrowed by the company in respect of any of the foregoing matters, and (iv) working capital, and (b) the sum payable on application for the amount so stated must have been paid to and received by the company. The amount so stated must be reckoned exclusively of any amount payable otherwise than in cash, and is referred to in the Act as the minimum subscription. Under the old law a sum paid by cheque could not be treated as paid to and received by the company until the cheque had been cleared [Mears v. Western Canada Co. (1905), 2 Ch. 353], but under s. 39 a sum is to be deemed to have been paid to and received by the Company if a cheque for that sum has been received by the Company in good faith and the directors have no reason for suspecting that the cheque will not be paid. The amount payable on application in respect of each share must not be less than five per cent. of the nominal amount of the share. 5. The allotment having been made, every director must, unless he has already done so, pay to the company on each of the shares taken or contracted to be taken by him, and for

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