COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 51 Allotment of shares and debentures to be dealt in on stock exchange.

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COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 51

Allotment of shares and debentures to be dealt in on stock exchange.

51.(1) Where a prospectus, whether issued generally or not, states that
application has been or will be made for permission for the shares or
debentures offered thereby to be [listed] on any stock exchange, any allotment
made on an application in pursuance of the prospectus shall, whenever made, be
void if the permission has not been applied for before the third day after the
first issue of the prospectus or if the permission has been refused before the
expiration of three weeks from the date of the closing of the subscription
lists or such longer period not exceeding six weeks as may, within the said
three weeks, be notified to the applicant for permission by or on behalf of
the stock exchange.

(2) Where the permission has not been applied for as aforesaid, or has been
refused as aforesaid, the company shall forthwith repay without interest all
money received from applicants in pursuance of the prospectus, and, if any
such money is not repaid within eight days after the company becomes liable to
repay it, 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 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.

(3) All money received as aforesaid shall be kept in a separate bank account
so long as the company may become laible to repay it under sub-section (2);
and, if default is made in complying with this sub-section, the company and
every officer of the company who is in default shall be liable to a fine not
exceeding five hundred pounds.

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

(5) For the purposes of this section, permission shall not be deemed to be
refused if it is intimated that the application for it, though not at present
granted, will be given further consideration.

(6) This section shall have effect

(a)in relation to any shares or debentures agreed to be taken by a person
underwriting an offer thereof by a prospectus as if he had applied therefor in
pursuance of the prospectus; and

(b)in relation to a prospectus offering shares for sale with the following
modifications

(i)references to sale shall be substituted for references to allotment;

(ii)the persons by whom the offer is made, and not the company, shall be
liable under sub-section (2) to repay money received from applicants, and
references to the company's liability under that sub-section shall be
construed accordingly; and

<(iii)for the reference in sub-section (3) to the company and every officer of the company who is in default there shall be substituted a reference to any person by or through whom the offer is made and who knowingly and wilfully authorises or permits the default.

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Northern Irish Legislation

COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 51