COMPANIES ACT (NORTHERN IRELAND) 1960

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COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 47



47.(1) No allotment shall be made of any share capital of a company offered to
the public for subscription unless the amount stated in the prospectus as the
minimum amount which, in the opinion of the directors, must be raised by the
issue of share capital in order to provide for the matters specified in
paragraph 4 of the Third Schedule has been subscribed, and the sum payable on
application for the amount so stated has been paid to and received by
the company.

For the purposes of this sub-section, a sum shall be deemed to have been paid
to and received by the company if a cheque for that sum has been received in
good faith by the company and the directors of the company have no reason for
suspecting that the cheque will not be paid.

(2) The amount so stated in the prospectus shall be reckoned exclusively of
any amount payable otherwise than in cash and is in this Act referred to as
"the minimum subscription".

(3) The amount payable on application on each share shall not be less than
five per cent. of the nominal amount of the share.

(4) If the conditions aforesaid have not been complied with on the expiration
of forty days after the first issue of the prospectus, all money received from
applicants for shares shall be forthwith repaid to them without interest, and,
if any such money is not so repaid within forty-eight days after the issue of
the prospectus, the directors of the company shall be jointly and severally
liable to repay that money with interest at the rate of five per cent. per
annum from the expiration of the forty-eighth day so, however, that a director
shall not be liable if he proves that the default in the repayment of the
money was not due to any misconduct or negligence on his part.

(5) Any condition requiring or binding any applicant for shares to waive
compliance with any requirement of this section shall be void.

(6) This section, except sub-section (3), shall not apply to any allotment of
shares subsequent to the first allotment of shares offered to the public for
subscription.

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Northern Irish Legislation

COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 47