SALE OF SHARES

Evening Post, Volume CVII, Issue 58, 12 March 1929, Page 14

SALE OF SHARES

DOOR-TO-DOOll BUSINESS

ILLEGAL IN ENGLAND

;.;: \ ''Evening I'oat," 12th. March. *: , The practice of Belling shares and bonds I', from door to door is becoming increasingly "' ; eommoriin Australia;-and-steps, arc being taken.there, to counteract it. It: is not ; '■•■' ' unknown-in New Zealand, and it is found "'• ' to Wake a strong appeal to women and ]'*■'■ to dwellers in. the country, according to "i, the persuasiveness of the salesman. The ■■'' ' matter has been fully considered by Stock '-•' ■ Exchanges of the Commonwealth and the :: Dominion. The British Government, however, has taken a-firm stand on this '■• hawking of shares" like pins or soap or " pedlar's goods in general. Section 82 ot " the English Companies Act, 1928, pro- '■'■ vides:—"lt shall no.t be lawful for any :: person to go from.house to house ottering ': '• shares for subscription or purchase to the ■ public or any member of the public. In this connection the term "house does '■ not include an office used for business pur- ■'-< • poses, and the term "shares" includes ue- ','. ' bentures. , -'■' ' Where shares not quoted on a recog- ;■' 'nised Stock Exchange in Great Britain, or not already allotted or agreed to be ■■ • ■ allotted, are offered in. writing to the ■:l public the offer (except in the cases here- ■': . fnafter mentioned) must be accompanied ••'" .by a written statement, signed by.the pei- -' son making it and dated, containing- the ;': ■; following information:— • ' , ■• : (a) Whether the person making tne ;" -feffer. is.acting as.principal or agent, and *■ '- if as'agent the name of his" principal and • "an- address-in Great Britaia- where, that * '■', ("principal can be served with process. " (h) The date on'which and the country •'■■ in which the company was incorporated, I' /and-the.address of its registered or. prm- «;! :cipal -office in Great Britain. •f . (cV The" authorised share capital oi the :: company and the amount thereof which i .has been issued, the clasps into which it ' is divided., and the rights of each, class of - shareholders in respect of capital divi-

"I tompany on. each class of shares, during .■techS or the three financial years immed- ;■ :»tely preceding the offer, and if! 11 dmU .'dend has been paid in respect of shaies ■i- *f any particular clas 9 during any of those ■: < "Wears,'-a-'statenient to that eftect. ■'• iT (c) The total amount of any debentures by the company and outstanding •'•at the date of ? the statement .togethe, '.'P. W ith the rate of'interest payable theieon. !'' " (t) The names and addresses ot tlie directors of the company and ot any per- ;: >n occupying the position of director of

'^^ wKer or not the shares offered ■r."-.rt: fully paid up/ and, if not,.to what ■; >'t) WheLSVI tL shares are quotJ; ,c* on, or permission to deal therem has "' 'U-en granted by any recognised Stock Ex- ■ change in Great Britain or elsewhere, and ."' « so which, and, if not, a statement that 'I They'aT not so'emoted or that no such ■■-•■ :'vei-ims3ion has been granted. •. ■■■■: V Xheioregoing provisions.regarding offeis ; ' dti writing do not apply in the case of an •• offe!' o a person whose ordinary business "-■ «r part of whose ordinary business is to ■■/ Tniy or sell shares, either as prmc.pal or ■agent, or where the. offer is made to a. ■ '•certon with whom the person making the '■=■ . offer ha* been in the habit of do.ng regu- » Tar business in the purchase or sale of '' !*hTto "penalties provided for contravention ' : or procuring contravention are as follow. •Imoßisonment for a term not exceeding six : Shi ? or a fine t,p to £200 or both such .^imprisonment and fine, and in the..case. •W^'ieco'n^ or B ub 3 equent,offenc^.iiW. '■• <;oninent for""a" term not exceeding twelve ■;■ £X or a fine up to £500 or both such ■"• •-imprisonment and fine. - The Court ; con-. 'victinga person-of-contravention, or pio- ; --1 xut-ing contravention may order that any :■;'■ Contract made as a result of the offer .'■.f-shall be void, and may,give directions ior repayment;of any money or the reii'^transfer of any'shares.' : ■ ;