Western Australian Consolidated Acts

COMPANIES (CO-OPERATIVE) ACT 1943 - SECT 53

53 .         Restriction as to allotment

        (1)         No allotment shall be made of any share capital of a company offered to the public for subscription unless the amount stated in the prospectus as the minimum amount which, in the opinion of the directors, must be raised by the issue of share capital in order to provide for the matters specified in paragraph (5)(i) of Part A of section 47, less the amounts mentioned in subparagraph (ii) of the said paragraph, or, if no amount is so stated, then the whole amount of the share capital so offered for subscription has been subscribed, and the sum payable on application for the amount so stated or for the whole amount offered for subscription has been paid to and received by the company.

        (2)         The amount so stated in the prospectus and the whole amount aforesaid shall be reckoned exclusively of any amount payable otherwise than in cash and is in this Act referred to as the minimum subscription .

        (3)         The amount payable upon application on each share shall not be less than 10% of the nominal amount of the share.

        (4)         If the conditions aforesaid have not been complied with on the expiration of 4 months after the first issue of the prospectus, all money received from applicants for shares shall be forthwith repaid to them without interest, and if any such money is not so repaid within 5 months after the issue of the prospectus the directors of the company, or, in the case of an intended company, the persons named in the prospectus as the proposed directors and the promoters shall be jointly and severally liable to repay that money, with interest at the rate of 5% per annum from the expiration of the period of 5 months: Provided that a director, a person named in the prospectus as a proposed director or a promoter, shall not be liable if he proves that the default in the repayment of the money was not due to any misconduct or negligence on his part.

        (5)         Any condition requiring or binding any applicant for shares to waive compliance with any requirement of this section shall be void.

        (6)         The provisions of section 47(8) are incorporated in this section as though they were set out herein and expressly made applicable to the provisions of this section.

        [Section 53 amended by No. 47 of 1949 s. 7.]