New South Wales Consolidated Acts

LOAN FUND COMPANIES ACT 1976 - SECT 43

43 Surrender of options and shares

(1) Subject to this section, the holder of:

(a) an option to acquire loan entitlement shares in a loan fund company,

(b) qualifying shares in a loan fund company, or

(c) loan entitlement shares in a loan fund company, not being shares in respect of which the company has made a loan for which any liability to the company is outstanding,

may, by notice in writing served on the company, surrender that option or, as the case may be, those shares to the company if, at the date of service of the notice, all amounts due to the company in respect of that option or those shares have been paid.

(2) The right conferred by subsection (1) is not, except with the agreement of the loan fund company concerned, exercisable:

(a) in the case of:

(i) an option to acquire loan entitlement shares,

(ii) qualifying shares, or

(iii) loan entitlement shares acquired pursuant to the exercise of any such option or the exercise of a right conferred by any such qualifying shares,

until the expiration of the prescribed period from the date, whether before or after the commencement of this section, on which that option was granted or, as the case may be, those qualifying shares were allotted, or

(b) in the case of loan entitlement shares other than loan entitlement shares referred to in paragraph (a) (iii), until the expiration of the prescribed period from the date, whether before or after the commencement of this section, on which those shares were allotted.

(3) The notice referred to in subsection (1) shall:

(a) be in or to the effect of the prescribed form, and

(b) be accompanied by the option that is, or the shares that are, to be surrendered.

(4) A surrender of an option or shares in accordance with this section shall be effective on and from the date of the service of the notice on the loan fund company under subsection (1).

(5) Not later than 7 days after being served with a notice under subsection (1), the loan fund company shall send to the person who surrendered the option or, as the case may be, the shares a letter by certified mail acknowledging the receipt of the notice.

Maximum penalty: 2 penalty units.

(6) A person whose option has, or whose shares have, been surrendered under this section shall cease to be the holder of that option or, as the case may be, to be a member in respect of those shares and shall not be required to pay to the loan fund company any further calls or instalments in respect of the option or shares, but, in the case of surrendered shares, the person shall not be entitled to receive any dividends declared in respect of those shares and not actually paid before the surrender.