COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 89 Power to re-issue redeemed debentures in certain cases.

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COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 89

Power to re-issue redeemed debentures in certain cases.

89.(1) Where either before or after the commencement of this Act a company has
redeemed any debentures previously issued, then

(a)unless any provision to the contrary, whether express or implied, is
contained in the articles or in any contract entered into by the company; or

(b)unless the company has, by passing a resolution to that effect or by some
other act, manifested its intention that the debentures shall be cancelled;

(2) Subject to section ninety, on a re-issue of redeemed debentures the person
entitled to the debentures shall have, and shall be deemed always to have had,
the same priorities as if the debentures had never been redeemed.

(3) Where a company has either before or after the commencement of this Act
deposited any of its debentures to secure advances from time to time on
current account or otherwise, the debentures shall not be deemed to have been
redeemed by reason only of the account of the company having ceased to be in
debit whilst the debentures remained so deposited.

(4) Subject to sub-section (5), the re-issue of a debenture or the issue of
another debenture in its place under the power by this section given to, or
deemed to have been possessed by, a company, whether the re-issue or issue was
made before or after the commencement of this Act, shall be treated as the
issue of a new debenture for the purposes of stamp duty, but it shall not be
so treated for the purposes of any provision limiting the amount or number of
debentures to be issued.

(5) Any person lending money on the security of a debenture re-issued under
this section which appears to be duly stamped may give the debenture in
evidence in any proceedings for enforcing his security without payment of the
stamp duty or any penalty in respect thereof, unless he had notice or, but for
his negligence, might have discovered, that the debenture was not duly
stamped, but in any such case the company shall be liable to pay the proper
stamp duty and penalty.

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Northern Irish Legislation

COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 89