COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 50 Applications for, and allotment of, shares and debentures.

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COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 50

Applications for, and allotment of, shares and debentures.

50.(1) No allotment shall be made of any shares in or debentures of a company
in pursuance of a prospectus issued generally and no proceedings shall be
taken on applications made in pursuance of a prospectus so issued, until the
beginning of the third day after that on which the prospectus is first so
issued or such later time, if any, as may be specified in the prospectus.

The beginning of the said third day or such later time as aforesaid is
hereafter in this Act referred to as "the time of the opening of the
subscription lists".

(2) In sub-section (1), the reference to the day on which the prospectus is
first issued generally shall be construed as referring to the day on which it
is first so issued as a newspaper advertisement, so, however, that if it is
not so issued as a newspaper advertisement before the third day after that on
which it is first so issued in any other manner, the said reference shall be
construed as referring to the day on which it is first so issued in any
manner.

(3) The validity of an allotment shall not be affected by any contravention of
sub-section (1) or sub-section (2) but, in the event of any such
contravention, the company and every officer of the company who is in default
shall be liable to a fine not exceeding five hundred pounds.

(4) In the application of this section to a prospectus offering shares or
debentures for sale, sub-sections (1) and (3) shall have effect with the
substitution of references to sale for references to allotment, and with the
substitution for the reference to the company and every officer of the company
who is in default of a reference to any person by or through whom the offer is
made and who knowingly and wilfully authorises or permits the contravention.

(5) An application for shares in or debentures of a company which is made in
pursuance of a prospectus issued generally shall not be revocable until after
the expiration of the third day after
the time of the opening of the subscription lists, or the giving before the
expiration of the said third day, by some person responsible under section
forty-three for the prospectus, of a public notice having the effect under
that section of excluding or limiting the responsibility of the person giving
it.

(6) In reckoning for the purposes of this section and section fifty-one the
third day after another day, any intervening day which is a Saturday or Sunday
or which is a bank holiday shall be disregarded, and if the third day (as so
reckoned) is itself a Saturday or Sunday or such a bank holiday there shall
for the said purposes be substituted the first day thereafter which is none of
them.

(7) This section shall not apply in relation to a prospectus to which
paragraph (a) or paragraph (b) of sub-section (2) of section thirty-nine
applies.

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Northern Irish Legislation

COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 50