C-14 - Railway Act

Section 40 Disposition versions

1977-12-31

40. (1)  At the general meetings of the shareholders of the company, a dividend shall be declared out of the clear profits of the undertaking, unless the meeting declares otherwise.

(2)  Such dividend shall be at the rate of so much per share upon the several shares held by the shareholders in the stock of the company, as such meeting may think fit to appoint or determine.

(3)  No dividend shall be declared whereby the capital of the company is in any degree reduced or impaired, or shall be paid out of such capital.

No dividend shall be paid in respect of any share, after a day appointed for payment of any call for money in respect thereof, until such call has been paid.

(4)  The directors may, in their discretion, until the railroad is completed and open to the public, pay interest at the legal rate per annum, on all sums called up in respect of the shares, from the respective days on which the same have been paid; such interest to accrue and be paid at such times and places as the directors appoint for that purpose.

(5)  No interest shall accrue upon any share as to which any call is in arrears in respect of such shares, or upon any other share held by the same shareholder while such call remains unpaid.

R. S. 1964, c. 290, s. 40.