Does subsection (1) refer to free bonus shares and is it desired that it should ? As I understand it, what is involved here is the provision of certain information in the event of the person concerned having to pay for what he is being offered. It seems to me that subsection (1) includes free bonus shares where he has not got to pay anything for what is involved.
SECTION 61.
Question proposed: " That Section 61 stand part of the Bill."
If the Deputy will return to page 21 of the Bill and the definition of " prospectus ", he will see it is for " subscription or purchase ".
Does " subscription " mean " subscription which is given " or does it mean " subscribing to membership of the company " by becoming a member. I think it means " subscription which is given ".
I will look into it.
I am raising a lot of these points for the purpose of having them brought to the notice of the draftsman. A committee all round a table cannot draft a Bill. All they can do is bring points to notice and leave them to the draftsman.
Surely in the case of absolutely free choice you do not offer them to the shareholders.
You offer them and the shareholders accept the allotment and therefore that is an offer.
If it is a right issue, where you have a right to subscribe you can pay, but surely if there is an offer to accept a free issue, you simply get an allotment letter.
You get an allotment alone. According to the 1908 Companies Act, you have to have an allotment that is accepted by the individual shareholders or some person who is agent for or on behalf of all shareholders. So I was advised by a senior counsel in a case which I met. Again, the draftsman can look into this.
I will check on it.
Question put and agreed to.