Western Australian Consolidated Acts Western Australian Consolidated Acts Notwithstanding any
provision in the memorandum of association of any company for payment amongst
shareholders of a portion of the profits of the business of the company
pro rata to the business done by each shareholder with the company, any
such company may, in lieu of payment to its shareholders on a cash basis,
issue to them bonus debentures or bonus shares for the amount of the profits
any shareholder is entitled to receive; and the issue of any bonus debenture
or bonus share to any shareholder for any such amount before the passing of
this Act is hereby declared valid and binding on any company that may have
issued the same, and on any shareholder of such company who may have received
the same:
Provided
that —
(i)
such bonus debentures, or bonus shares, shall not or do
not carry any liability for further payments or contributions on the part of
such shareholders;
(ii)
no debentures or shares shall be issued under this
section in excess of the portion of profits available for the time being for
distribution as aforesaid, and no such bonus shares shall be issued in excess
of the authorised capital of the company for the time being;
(iii)
any shareholder who has before the passing of this Act
made application in writing for dividends in cash instead of bonus shares,
shall receive the amount of such dividend due to such shareholder in cash.