I move amendment No. 28 :
To add a new subsection as follows :
" () Where new shares are issued by a company on the terms that, within a period not exceeding 12 months, they will rank pari passu for all purposes with all the existing shares, or all the existing shares of a particular class, in the company, neither the new shares nor the corresponding existing shares need have distinguishing numbers so long as all of them are fully paid up and rank pari passu but the share certificates of the new shares shall, if not numbered, be appropriately worded or enfaced.”
This arises out of the Jenkins Report. Its object is to ensure that a company will not be prevented from availing of the concession set out in subsection (2) merely by reason of the fact that some new shares which it proposes to issue will not, until some time has passed, rank pari passu, for all purposes, with existing shares. It was represented to the Jenkins Committee that companies issuing new shares, which were not to rank for dividend for some time, had difficulty under this head, and subsection (2) requires that the shares must rank pari passu for all purposes with the existing shares.
