NO MORE COMPANY MILLIONAIRES.

Auckland Star, Volume XXXI, Issue 310, 29 December 1900, Page 2 (Supplement)

NO MORE COMPANY MILLIONAIRES.

A LEGAL REVOLUTION.

The new "Companies Act 1900," which '- will came into operation on January V'"•;'; 1901, is undoubtedly the most important piece of legislation of the year, says 'a London exchange.

The reforms which it .maEes are fodrastic that it may be said to entirely revolutionise the law of limited companies. The Act spells death to every / dishonest company formation. Here are some of its main features.Directors must pay for their qualification ';Y shares and file an agreement so to da.;, with the registrar before tney act and ; ? ; before their names are advertised on any : •■•; prospectus. They must pay on applica-. : tion and allotment the'same as the pub- " lie who subscribe for shares, and not less-" ?:; • than 5 per cent, of the amount of their '-■■ shares. The prospectus must state the minimum amount upon which the directors, will go to allotment, and if this is not ■,/. stated the whole amount of the capital offered to the public must be subscribed.

If these conditions are not complied ,' with within forty days the money received from applicants for shares is to be ■' returned to them. ' <"ft|| A company is not to begin business un- - less the minimum amount of, capital above referred to has been subscribed, every director has paid his application and allotment money, and a statutory! a declaration has been filed as to this having been done. *m ' Within a month of allotment a full return is to be made to the registrar show- • ' ing the capital subscribed with names and addresses and amounts paid. If a commission is paid for subscribing for shares, the amount^ must be stated,; and also the rate per cent, agreed to be paid. ' ' - r.;fSi»| No commission is^to be paid in shares , or money by adding it on to the contract price, but the usual brokerage may still be paid. A copy of the prospectus before being issued must be signed by the, direc* l|tl tors, and filed, and must contain tha names and addresses of vendors and sulh|B vendors, and the amounts payable *4iS each, thfi amount payable for goodwill, the amount or estimated amount of pre* liminary expenses, the" amounts paid to • promoters, the nature and extent of* the interest of every director in the promotion, a. copy of the memorandum of asso?:|H§ ciation, and the names and addresses G*.i^S the signatories thereto. - The terms of any contract, referred t* .'; In the prospectus cannot be varied "prior , to the statutory meeting- except with th 9 ; latter's approval. This meeting is to b« ', held not less than one month, nor moi*§| than three months, Trom the commencement of business,- and .a report is ■to bt^K sent out seven, days before such meeting, giving full details of the company's posl; tion. ■ ■■;;>. I All mortgages and charges are to Wyp registered so that creditors and the-public may know to,what extent a company*l"^ property is encumbered. ' '• *; > ■ Any person wilfully making, a t«ifms statement in a material particular Is t* be liable to two years' imprlsoiunantj^|||| a fine. &B8