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Restrictions on company as to borrowing, &c.
8 & 9 Vict. c. 16.
8 & 9 Vict. c. 17.
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23. In the thirdly-mentioned case the company, whether incorporated by special Act or by certificate, shall be subject to the following restrictions; namely,
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(1.) They shall not exercise any power of borrowing money under the certificate until the whole of the share capital authorized by the certificate is subscribed for or taken, and until one half thereof is actually paid up, and until they prove to the justice who is to certify under section 40 of the Companies Clauses Consolidation Act, 1845, or (in Scotland) to the sheriff who is to certify under section 42 of the Companies Clauses Consolidation (Scotland) Act, 1845, as the case may be, before he so certifies, that shares for the whole of the capital are issued and accepted, and that not less than one fifth part of the amount of each separate share has been paid up on account thereof before or at the time of the issue or acceptance thereof, and that all such shares are taken in good faith, and are held by the subscribers or their assigns, those subscribers or their assigns being legally liable for the same (of which matters the certificate of the justice or sheriff shall be sufficient evidence) :
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(3.) They shall not, out of money raised under the certificate by calls or borrowing, pay interest or dividend to a share-holder on the amount of calls made on his shares, whether created under the certificate or otherwise (but this provision shall not prevent them paying to a shareholder under the certificate such interest on money advanced by him beyond the amount of calls actually made as is allowed by the Companies Clauses Acts) :
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