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

PROSPECTUS AND ALLOTMENT 55 to their existing holdings, a circular letter is commonly sent out accompanied by a specific offer to each individual holder, on which is a form of acceptance of the offer, with receipt for the first instalment attached. If it is desired that the share- holder or debenture holder should be able to renounce his right and nominate another person to exercise it, the form may include a letter of renunciation. Form 15 may be used for this purpose, either wholly or in part, according to the circumstances of the case. An allotment letter requires a penny stamp if the value of the shares allotted is less than £5, and a sixpenny stamp (impressed) if the value is £5 or over. The same scale of duty applies to letters of renunciation, but the stamp may be adhesive even if the value is over £5 (Finance Act, 1899, 62 & 63 Vict. c. 9, s. 9) The fractional part of a share must be stamped on the same basis, both in the case of letters of allotment and letters of renunciation (Revenue Act, 1909, 9 Ed. VII, c. 43, s. 9).- The bankers’ receipt, if attached to the allotment letter, does not require a separate stamp [London & Westminster Bank v. Inland Revenue Commissioners (1900), 1 Q.B. 166]. Inasmuch as the agreement to become a member is often constituted by application and allotment, and agreement to become a member followed by entry on the register con- stitutes membership of a company (s. 25) with all its attendant rights and liabilities, it is important to appreciate the effect of a number of legal decisions on the subjects of application and allotment. The following are amongst the chief points to be observed with regard to an application for shares: It need not be in writing [Levita’s Case (1867), 3 Ch. App. 36]. It may be withdrawn before acceptance, but the offer remains open until the letter of revocation is actually received [Byrne v. Van Tienhoven (1880), 5 C.P.D. 344]. The with- drawal need not be in writing; and may be communicated to the secretary, or, in his absence, even to a clerk in charge [Truman's Case (1894), 3 Ch. 272}. The doing of some act inconsistent with the continuance of the offer, done to the knowledge of the company, may be an effective withdrawal [Dickinson v. Dodds (1876), 1 Ch. D. 463]. The application may be made by an agent [Hannan’s Empress Co. (1896), 2 Ch. 643]; but unless the agent informs the company that he takes the shares as agent and not as principal he may be personally liable in respect of them [Southampton Steamboat Company (1864), 4 De G.J. & S. 200]. Moreover, if the allotment is made to the agent and he renounces in favour of Decisions as fo Applications.

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