LIEN ON SHARES

63.       Lien on Shares
Subject to the provisions of the Act, the Company shall have a first paramount lien on all the shares including fully paid-up shares registered in the name of each member (whether solely or jointly with others) and upon the proceeds of sale thereof for all moneys called or payable at a fixed time in respect of such shares whether period for the payment, fulfillment or discharge thereof shall have actually arrived or not and no equitable interest in any shall be created except upon the footing and condition that this Article is to have full effect.  And such lien shall extend to all dividends and bonus from time to time declared in respect of such shares, unless otherwise as a waiver of the Company’s lien, if any, on such shares.  The Directors may, at any time, declare any shares wholly or in part to be exempt from the provisions of this clause.

64.       Enforcing Lien on shares
For the purpose of enforcing such lien, the Board may sell the shares subject thereto in such manner as they shall think fit, but no sale shall be made until a notice in writing of the intention to sell has been served on such member or the person (if any) entitled to the transmission to the shares or his representative and default has been made by him in payment of moneys called or payable at a fixed time or in fulfillment of discharge of such debts, liabilities or engagements in respect of such shares for fourteen days after such notice.  To give effect to any such sale the Board may authorize some person to transfer the shares sold to the purchaser thereof.

65.       Application of proceeds of sale
The net proceeds of such sale after payment of the costs of such sale shall be applied in or towards satisfaction of such debts, liabilities or engagements of such members and the balance shall, subject to a like lien for sums not presently payable as existed upon the shares before the sale be paid to such member, his legal representative or assigns or the person (if any) entitled by transmission to the shares so sold.

FORFEITURE OF SHARES

66.       Notice may be given for non-payment of call or installment
If any member or his legal representative as the case may be fails to pay the whole or any part of any call or installment or any money due in respect of any shares either by way of principal or interest on call or before the days appointed for the payment of the same or any such extension thereof, the Board may at any time thereafter, during such time as the call or installment or any part thereof and other moneys remaining unpaid or a judgement or decree in respect thereof remaining unsatisfied in whole or in part, serve a notice on such member or his legal representative or the person (if any) entitled to the share by transmission or if none, then by way of advertisement in a newspaper circulating in the district where the Registered Office of the Company is situated, requiring him to pay such call or installment or such part thereof or other moneys as remain unpaid together with any interest that may have been incurred by the Company by reason of such non-payment.

67.       Form of Notice
The notice shall name a day (not being less than fourteen days from the date of service of the notice) and a place or places at which such call or installment or such part and other moneys if any and such interest expenses as aforesaid are to be paid and if payable to any person other than the Company, the person to whom such payment is to be made.  The notice shall also state that in the event of the non-payment before the time and at the place appointed, the shares in respect of which the call was made, or installment is payable will be liable to be forfeited.

68.       If notice not complied with, shares to be forfeited
If the requirements of any such notice as aforesaid have not been complied with, every or any shares in respect of which such notice has been given, may at any time thereafter before the payment of all calls or installments, interest and expenses and other dues in respect thereof be forfeited by a resolution of the Board to that effect.  Such forfeiture shall include all dividends and bonus shares if any declared in respect of the forfeited shares and not actually paid before the forfeiture.

69.       Entry of forfeiture in the Register of Members
When any share has been so forfeited, notice of the resolution, shall be given to the member in whose name it stood immediately prior to the forfeiture, and an entry of the forfeiture with the date thereof, shall forthwith shall be in any manner invalidated by any omission or neglect to give such notice or to make such entry as aforesaid.

70.       Share forfeited to be the property of the Company
Any share so forfeited under these Articles shall be deemed to be the property of the Company and may be sold or re-allotted or otherwise disposed of either to the original holder thereof or to any other person, upon such terms and in such manner as the Board shall think fit.

71.       Effect of forfeiture
The forfeiture of  a share shall involve the extension, of all interest in  and also of all claims and demands against the Company in respect of the forfeited shares and all other rights incidental to the share, except only such of those rights as by these Articles are expressly saved.

 

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