PART VISHARE CAPITAL, ITS INCREASE, MAINTENANCE AND REDUCTION
CHAPTER VMAINTENANCE OF CAPITAL
Acquisition of shares by company's nominee154
1
Subject to Article 155, where shares are issued to a nominee of a company mentioned in Article 153(1), or are acquired by a nominee of such a company from a third person as partly paid up, then, for all purposes—
a
the shares are to be treated as held by the nominee on his own account; and
b
the company is to be regarded as having no beneficial interest in them.
2
Subject to that Article, if a person is called on to pay any amount for the purpose of paying up, or paying any premium on, any shares in such a company which were issued to him, or which he otherwise acquired, as the company's nominee and he fails to pay that amount within 21 days from being called on to do so, then—
a
if the shares were issued to him as subscriber to the memorandum by virtue of an undertaking of his in the memorandum, the other subscribers to the memorandum, or
b
if the shares were otherwise issued to or acquired by him, the directors of the company at the time of the issue or acquisition,
are jointly and severally liable with him to pay that amount.
3
If in proceedings for the recovery of any such amount from any such subscriber or director under this Article it appears to the court—
a
that he is or may be liable to pay that amount, but
b
that he has acted honestly and reasonably and, having regard to all the circumstances of the case, he ought fairly to be excused from liability,
the court may relieve him, either wholly or partly, from his liability on such terms as the court thinks fit.
4
Where any such subscriber or director has reason to apprehend that a claim will or might be made for the recovery of any such amount from him, he may apply to the court for relief; and the court has the same power to relieve him as it would have had in proceedings for the recovery of that amount.