MINING COMPANIES’ ACT, 1872.

Dunstan Times, Issue 547, 11 October 1872, Page 3

MINING COMPANIES’ ACT, 1872.

This is the title of a Bill now before the Assembly for the incorporation and wind-ing-'up of mining companies. The following is a synopsis «f the measure : The Act is divided into two parts, and has one hundred and forty-two clauses. It makes certain important alterations in the law, as well as consolidates previous legislation on incorporating and winding-up gold-mining companies, and its provisions are strictly confined to such companies. It may first be noticed that the interpretation given to the word “ Court” in the Bdl is that it shah in the first instance mean the District Court, and if there be no such Court in the mining district where a mining company exists, then Such expression shall mean the Supreme Court, holding its sittings in'the judicial district within which the operations of the company are being carried on. The liability of the shareholders will ordinarily be limited to the amount unpaid of their shares but it is alsa provided that the capital of the company may he increased on the vote of twothiids of the shareholders]at an extraordinary meeting of those present either in person or hy proxy. This increase may either be iu the shape o? increasing the amount payable in respect of each share, or by the issue of new shares. Notice of proposed increase of capital must be given in the Gazette, as well as in one or more newspapers and also to the Registrar of the Supreme Court, the latter signed by the manager and by at least two of the directors of the company. A similar extraordinary meeting may sanction the borrowing of money on the security of the company’s property. With respect to dividends and calls there are some new features in the Bill before us. Any director of a company being a party to the payment of any dividends, except out of profits, shall be liablh to a penalty of not less than one hundred pounds, an.l not exceeding five hundred pounds, or in default thereof imprisonment fur not less than three, and not exceeding twelve months. He shall also bs liable to the creditors of the company for all the debts dub hy the company', to the extent that the dividends paid shall exceed the profits, and such amount may be recovered by the creditors, or the liquidator suiug on behalf of the creditors. The calls are to be payable on the second monday in the month; and on that day only, such days not to be less than seven days fiom the time the call is made. A notice must be printed on the face of each company’s scrip, stating that to be the day on which calls are payable. The resolution of the directors in the minute book making a call, or a certified copy',; is to be proof that the call has been made. Clause fiftyfour is a most important one, and will doubtless attract some attention. It provides that any share,upon which a call due thereon shall,- at the expiration of fourteen days after the day iqjon which it shall be due, unpaid, shall thereupon be absolutely forfeited without any resolution of directors or other proceeding, provided that no proceeding for the recovery of the call shall during fourteen days havebeen commenced. Forfeited shares are to be sold by auction, of which not less than seven nor more than fourteen days’ notice by advertisement must bo given. But any person whose shares shall be forfeited shall be entitled to redeem them any time up to and on the day of sale, upon paying all calls aud all expenses in respect of such shares. With respect to winding up companies, also, important alterations are made. The creditors for instance, have power to appoint a liquidator of the estate cf the company at such remuneration they shall agree upon ; but the sanction of the court must be bad and the liquidator mustaecept the office before he will be allowed to act.

The liquidator once appointed, he cannot resign the office without the sanction of the court; but the creditors may remove him. A clerk employed by a liquidator must also be sanctioned by the court; aud both liquidator aud clerk are then officers of tho court.

Provision is also made in the Act for prepayment companies, that is, at the beginning of each month an estimate of the sum required to carry on operations for that inont-i -Shall be made, and a call shall be made for the payment thereof, it the company have not profits to carry on operations. The directors of such companies will be personally liable for any' extra unauthorised expenditure. There are also clauses providing for no liability companies, in which shareholders will not be liable to calls or contributions.