Subsection (2) is designed to meet one of the recommendations of our own committee who pointed out that sometimes a shareholder, whether by reason of change of address or otherwise, fails to cash warrants for dividends to which he is entitled. It provides that dividends unclaimed for more than six years before the date of winding up shall not be admissible to proof against the company unless the articles of association or the conditions of issue otherwise provide.
SECTION 283.
Question proposed : " That Section 283 stand part of the Bill."
Would the Statute of Limitations not affect it?
I think the operation of the Statute of Limitations is affected in cases of this kind as acknowledgment of the debt can arise by entries in the accounts.
Acknowledgment of the debts?
If you show unclaimed dividends.
It is important to point out that it is designed in spirit to go beyond the Statute of Limitations. It is a simple contract. What you are really doing is wiping out any acknowledgments that might exist.
Question put and agreed to.