THE COMPANIES ACT.

New Zealand Herald, Volume XLI, Issue 12708, 10 November 1904, Page 5

THE COMPANIES ACT.

HOW IT IS BEING EVADED. By Tekgrapli.— Atiocletioa.—Copyright. London, November 8. The Official Receiver for companies in liquidation says that many companies, (X) evade the provisions of J the Companies Act of 1900, which re- j quires the making of detailed statements in a prospectus, are now re- j gistering in Guernsey. The nominal | capital of the companies , registered ! in Guernsey was £27,250 ia 1899; now it is £18,000,000. •.:■: • - - .' ' V"', The Companies Act prohibits among other things a person being appointed;;* director; by the articles of association, and a person being 'named as a, director, unless he has lodged < with the registrar his • (bom»M'. in writing, and taken up or entered Into a contract to take the share? necessary . for his qualification. On application for • registration, it. must he shown that the shares, fixed '!■ as • the , minirnu-n '% for.:* allotment,* have been paid for; or if. there is no minimum, , then i the whola of the capital must be subscribed.? v < ,Ewy,; prospectus ha? to give full details of the constitution of the company, together with the names and addresses or the promoters. The object of i the registra-• tion in Guernsey is to avoid the binding of. promoters and directors to the stringent conditions of the Companies Act. •' ' . . -