HC Deb 27 February 1980 vol 979 cc1420-4

'After section 27 of the Companies Act 1976 there shall be inserted the following section—

"27A.—(1) If a person fails to comply with a notice under the foregoing section the company may by order direct that the shares in respect of which the notice was served shall, until that person complies with the notice or further order, be subject to the restrictions imposed by this section.

(2) So long as any shares are directed to he subject to the restrictions imposed by this section—

  1. (a) Any transfer of those shares, or in the case of unissued shares any transfer of the right to be issued therewith and any issue thereof, shall be void;
  2. (b) No voting right shall be exercisable in respect of those shares;
  3. (c) No further shares shall be issued in right of those shares or in pursuance of any offer made to the holder thereof;
  4. (d) Except in a liquidaton, no payment shall be made of any sum due from the company on those shares, whether in respect of capital or otherwise.

(3) Where a company makes an order directing that shares shall be subject to the said restrictions the company shall forthwith give notice in writing thereof to the person whose failure to comply with a notice under the foregoing section led to the making of the order; such notice shall be deemed to be duly given by being sent by prepaid first class post to the last known address of that person.

(4) Where a company makes an order directing that shares shall be subject to the said restrictions, or refuses to make an order directing shares shall cease to be subject thereto, any person aggrieved thereby may apply to the Court and the Court may, if it sees fit, direct that the shares shall cease to be subject to all or any of the said restrictions in whole or in part on such terms as the Court thinks fit.

(5) Whenever an order is made in respect of shares comprised in relevant share capital of the company under this section or under section 174 of the Act of 1948 (power of the Secretary of State to impose restrictions on shares or debentures) the company shall be under an obligation to inscribe against the name of the member in whose name those shares are registered in a separate part of the register kept by it under section 34 of the Act of 1967

(Register of Interests in Voting Shares) the fact that the restrictions were imposed, the date on which they were imposed and, where appropriate, the date on which they were lifted.

(6) Subsections (2) to (9) of the said section 34 (which relates to the manner in which the register is to be made up and provide for public inspection of the register) shall apply in relation to the part of the register referred to in subsection (5) above as they apply in relation to the remainder of the register, and as if reference to subsection (1) of that section included references to subsection (5) above.

(7) In this section 'relevant share capital' has the same meaning as in section 33 of the Act of 1967 and 'the court' means any court having jurisdiction to wind up the company." '.—[Mr. Archer.]

Brought up, and read the First time.

Question put, That the clause be read a Second time:—

The House divided: Ayes 150, Noes 193.

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