Comparison 
with 
Companies 
Acts. 
208 
SECRETARIAL PRACTICE 
own, or carry on any railway, canal, dock, water, or other 
public undertaking, and includes any person or body of 
persons so authorised.” The debenture stock of such 
companies has always, by reason of their constitution, been 
irredeemable, and the right of the holder is a right to a 
perpetual annuity. Preference shares or stock have also, 
of course, been irredeemable. The Act, which came into 
force on May 19, 1915, enables statutory companies which 
are authorised to raise preference or debenture stock, to 
create and issue it so as to be redeemable upon such terms 
and conditions as may be specified by resolution of a special 
meeting of the company. The resolution may provide for 
the stock being redeemed at any time before the fixed date 
of redemption, and for the redemption being effected either 
by payment off, or by the issue of substituted stock, or by 
the purchase and cancellation of stock, and for the establish- 
ment of a sinking fund out of revenue. 
There are important limitations upon the exercise of the 
powers conferred by the Act, which should be carefully 
noticed. It only applies to stock, the creation or issue of 
which was authorised before the Act came into force; but 
where the authority existed before May 19th, 1915, the powers 
conferred by the Act may be exercised at any time after- 
wards. Certain restrictions were imposed on the exercise of 
powers until twelve months after the war; but these have 
ceased to be operative. The Act further provides that where 
a statutory company has, between the outbreak of war 
(4th August, 1914) and the commencement of the Act, passed 
a resolution for the creation or issue of redeemable stock, 
such resolution shall be as effective as if the Act had been in 
force when the resolution was passed. The power to create 
redeemable debenture stock brings statutory companies 
into line in this respect with limited companies; but the 
power to issue preference shares or stock which are to be 
redeemable, of course, effects what was formerly impossible 
in the case of a limited company, and is now only possible 
to the extent permitted by s. 46 of the Companies Act, 1929. 
The result of the exercise of the power of redemption in the 
case of shares or stock will be to reduce the capital of the 
company at the discretion of the directors, and without any 
application’ to the Court. 
A perusal of the statutory provisions, of which mention 
is made above, will make it appear that whilst the resem- 
blance between the requirements of these Acts and of the 
Companies Act, 1929, is in many cases so strongly marked 
as to indicate that the framers of the Companies Acts