Finance Act (No 3) 1940

Finance Act (No 3) 1940

Public Act1940 No 26
Date of assent11 October 1940

Contents

Title

2  [Repealed]

3  [Repealed]

4  [Repealed]

5  [Repealed]

6  [Repealed]


An Act to make provision with respect to public finance and other matters

1 Short Title
  • This Act may be cited as the Finance Act (No 3) 1940.

2
  • [Repealed]

3
  • [Repealed]

4
  • [Repealed]

5
  • [Repealed]

6
  • [Repealed]

7 Restriction on registration of transfers of shares in bondholders companies
  • (1) This section shall be read together with and deemed part of the Companies (Bondholders Incorporation) Act 1934-35 (hereinafter referred to as the principal Act).

    (2) Notwithstanding anything to the contrary in the Companies Act 1955 or the principal Act, or in the order for incorporation or the articles of association of any bondholders company, and to be binding on the company and every member of the company, namely:

    No transfer of shares in the company shall be registered unless and until the transfer has been approved by the directors, and the directors shall have an absolute discretion to register or refuse to register any such transfer and shall not be bound to assign any reason for refusing to register any transfer, nor shall the exercise of such discretion be called in question in any proceedings whatsoever.

    (3) The alteration effected by this section in the articles of any company shall be deemed to be an alteration to which section 38 of the Companies Act 1955 applies.

    (4) It shall not be lawful for any bondholders company to make any alteration in its articles that is inconsistent with the provisions of this section.

    (5) Where the directors of any bondholders company, in the exercise of the discretion conferred on them by the provisions incorporated in the articles of the company by this section, refuse to register any transfer of shares the contract for the sale or transfer of the shares shall be deemed to be revoked, and the amount or value of any consideration given for the sale or transfer shall be recoverable as a debt due by the person who received to to the person who gave it.