C-14 - Railway Act

Section 38 Disposition versions

1977-12-31

38. (1)  The directors may sell, by public auction or private sale, and in such manner and on such terms as they may think fit, any shares so declared to be forfeited, and also any share remaining unsubscribed for in the capital stock of the company, or pledged such forfeited or unsubscribed shares for the payment of loans or advances made or to be made thereon, or of any sums of money borrowed by or advanced to the company.

(2)  A certificate of the treasurer of the company that the forfeiture of the shares was declared shall be sufficient evidence of the fact, and of their purchase by the purchaser; and such certificate, with the receipt of the treasurer for the price of such shares, shall constitute a good title to the shares.

(3)  The certificate shall be registered by the said treasurer in the name and with the place of abode and occupation of the purchaser, and shall be entered in the books required to be kept by the by-laws of the company; and such purchaser shall thereupon be deemed the holder of such shares, and shall not be bound to see to the application, of the purchase money, nor shall his title to such shares be affected by any irregularity in the proceeding in reference to such sale.

(4)  Any shareholder may purchase any shares so sold.

R. S. 1964, c. 290, s. 38.