Commonwealth Numbered Acts

COMPANIES ACT 1981 No. 89 of 1981 - SECT 479

479. (1) Any share in a no liability company upon which a call is unpaid at
the expiration of 14 days after the day for its payment is thereupon forfeited
without any resolution of directors or other proceedings and shall, subject to
this Division, be offered for sale by public auction not more than 6 weeks
after the date on which the call is payable.

(2) The sale shall be advertised not less than 14 and not more than 21 days
before the day appointed for the sale in a daily newspaper circulating
generally throughout the Territory.

(3) Where a sale is not held owing to error or inadvertence, the sale, if it
is held in due course as soon as practicable after the discovery of the error
or inadvertence, is not invalid.

(4) If there is any failure to comply with the provisions of this section, the
company and any officer of the company who is in default are each guilty of an
offence.

(5) At any such sale, a share forfeited for non-payment of any call may, if
the company in accordance with its articles or by ordinary resolution so
determines, be offered for sale and sold credited as paid up to the sum of the
amount paid up on the share at the time of forfeiture and the amount of the
call and the amount of any other calls becoming payable on or before the date
of the sale.

(6) The proceeds of the sale shall be applied in payment of-

   (a)  first, the expenses of the sale;

   (b)  second, any expenses necessarily incurred in respect of the
        forfeiture; and

   (c)  third, the calls then due and unpaid, and the balance (if any) shall
        be paid to the member whose share has been so sold on his delivering
        to the company the share certificate that relates to the forfeited
        share.