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

New Issue. 54 SECRETARIAL PRACTICE in respect of the shares renounced being the party in whose favour they were renounced. The execution of the letter of renunciation and the signature of the form of acceptance has a similar effect to a transfer of the shares, but it is not in law a transfer of shares attracting ad valorem duty, but an assignment of the right of the original allottee to be registered in respect of the shares. See re Pool Shipping Co. (1920), 1 Ch. 251; Collins v. Associated Greyhound Racecourses (1930), I Ch. p. 1. A time limit must be fixed within which letters of renunciation must be lodged or in default the original allottee will be entered in the register. As soon as that time has expired the secretary will have to inspect carefully all the forms that have been lodged. If the forms of renunciation and acceptance have been duly completed, he will enter the acceptor in the register instead of entering the original allottee; while if a form is defective, he will have to enter the original allottee. The question of what is the longest period which can safely be limited within which the letters of renunciation must be lodged is one of considerable difficulty. There is no statutory provision imposing any limit; but it is obvious that in the case of shares offered for subscription before the statutory meeting has been held the period should not be longer than will permit of the register being duly completed before the notice convening the statutory meeting is sent out. Unless this course is adopted, many of the subscribers would not receive the statutory report sent out for the statutory meeting. Again it is obviously inconvenient in view of s. 108 that shares should be issued upon such terms that at the date of the annual return no one is entered on the Register in respect thereof. No letters of renunciation should therefore be outstanding when the notice convening the annual meeting is sent out. It must also be borne in mind that if letters of renunciation were allowed generally to be outstanding for long periods, the law would probably be altered in order to prevent evasion of the ad valorem duty payable on transfers. In these circumstances it is thought that as a rule the period allowed should not exceed one month and in any event not be extended more than a few days after the date for pay- ment of the final instalment on the shares. The period last mentioned will enable issues to be placed, which is the primary and justifiable object of the issue of letters of allotment with letters of renunciation attached. Where a company makes an issue of new shares or deben- tures and desires to give existing shareholders or debenture holders a preferential right to apply for them in proportion

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