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Les cartes, planches, tableaux, etc., peuvent dtre filmds d des taux de reduction diff^rents. ^ Lorsque le document est trop grand pour etre reproduit en un seul clichd, il est film6 d partir de Tangle supdrieur gauche, de gauche d droite, et de haut en bas, en prenant le nombre d'images ndcessaire. Les diagrammes suivants illustrent la m6thode. 1 2 3 4 5 6 THE TORONTO GENERIIL TRUSTS GORPORIITiON. OlBo* and Safe Deposit Vaults Corner Yonge and Colborne Streets, Toronto. CAPITAL RESERVE FUND - $1,000,000 250,000 BOARD OF DIRECTORS: PRESIDENT JOHN IIOSKIN, Q.C., LL.D.. Director of the Canarlian Bank of Commerce and Canada Life Assurance Company. VIOE-PRE8IDENT8 HON. S. C. WOOD, Director the Western Assurance Company. W. H. BE.\TTY, Vice-President the Bank of Toronto, etc., etc. John Bell, Q.C., Belleville. W. 11. Brock. J. J. Foy, Q.C., M.P.P. William Hendrie. Hamilton. i3?]miliu8 Irving, QC. J. J. Kenny. A. B. Lee. W. D. Matthews. E. B. Osier. M.P. J. G. Scott, Q.C. B. E. Walker. John Laing Blaikic, J. W. Digby, M.D., Brantford. Georj^e Gooderham. Henry S. Howland. Robert Jaffray. J. W. Lan^muir. Thomas Lony. Hon. Peter Maclaren, Perth. Hon. Sir Frank Smith. T. Sutherland Stayner. Act of Parliament and Supplementary and execute all the duties involved in the Empowered by special Letters Patent to undertake following positions : — Executopand Trustee under appointment by will. Trustee under Deeds of Trust and by appointment of Courts, Corpora- tions and Private individuals. Administrator of intestate estates, or under will annexed. Guardian of infants. Committee of the person and estate of lunatics. Liquidator, Assignee, etc, etc. General Agents for Executors, Trustees and for the investment of money. Bonds, Debentures, Stocks, etc., issued and countersigned. The Toronto General Trusts Company was founded in 1882 and the Trusts Corporation of Ontario in 1890. These two companies are now amalgamated under the name of The Toronto General Trusts Corpora- tion. Tlie appointment of this Corporation as Executor and Trustee confers advantages that cannot be obtained by the appointment of indi- ▼iduals. (I) It has as a Corporation perpetual existence. (2) The capital of the Corporation and its reserves, amounting to over one million and a quarter dollars, furnishes a substantial guarantee to the public for the faithful administration of all business entrusted to its care. (8) Its affairs are under the constant supervision of a Board of Directors and of Executive and Inspection Committees and a trained siatf of officers. (4) The compensation of the corporation is fixed by the courts on pass- ing accounts, and in no case is it awarded greater remuneration than is allowed to private individuals, but in many instances considerably less. (5) The corporation retains the services of all solicitors bringing business to the corporation. J. W. Langmuir, Managing Director. A. D. Langmuir, Assistant Manager. ill m vm i 1.1 Hi 1, m i i iilil li! "ill f ill Hill hill w {J.I ill m I it;] mi' *1 Coni Acn Informati A Nun Thk ( THE ?5aPBhoI(lep^' and Dii^eetoi^^' Manual Containing a Compendium of the Laws relating to Joint Stock Companies, and Information as to the Steps to be Taken in Applying for Charters of Incorporation and Licenses UNncH THK ACTS OF THE DOMINION OF CANADA AND OF THE PROVINCES THEREOF KKI.ATINC Td JOINT STOCK COMPANIES TOGETIIEK WITH laformation Respecting the Organization and iVlanagement of such Companies, A Number of Forms and By-Laws Suitable for the Use thereof . BY J. D. WARDE, OK THE I'KOVINCIAI. SECKBTAKVS llKI'ARrMKNT. IOl*0NT0. Sixth Edition, Reviski. and Enlabg PlUCK 9H. ED. Thk Canada Railway News Co., Limited, PUBLISHERS 102 Union Station Building. TORONTO 1900. J a.i 1 ,ili|nip|i rntpnd accordinc to Act of the Parliament of Canada, in the year one thousand 2 hundred, by J. D. WA.mK. at the Department of Af-'ricultnre. Ottawa. Til •«» I ida. in the year one the Department of THIS VOLUME IS "V K.N„ I.KUM.SS.OX. KK«l.u;iFlILLV INSCHn.KI. TO 'nn; HONOURABLE J. R. STIUTTON. M.P. SRcnET.MlY „K iJIK PliOVI.NCK nv THE AUTHOR. OF ONTAHIO, PREFACE TO SIXTH EDITION. Owinj; to the extraoidiimr.v t'xpausUm in iiiiiiinu, manufuc'turing and other industries, and the large num- ber of companies that have been formed to carry on these industries, the Fifth edition of this worlv, publishel in 1898. was exhausted a few montlis after its issue. Since then, on tlu? :iOtli April. 1!MM). two important Acts of the Legislature of Ontario, respecting «'oni- panies. received the Koyal assent. One provides for th>^ cancellation of preference stock under specilied condi- tions; permits certain companies to abbreviate the word " limited " where it forms part of their corporate name, and provides for the i)ayment of a fee on filing the Annual Keturn. The other recjuires certain (lasses of Corporations, created otherwise than by. or under the authority of the Legislature of Ontario, to procure, before the first day of November, 1J)(KK Licenses authoriz- ing them to carry on the whole, or such i>arts of their business and to exercise the whole, or such y)arts of their powers in Ontario as may be embraced in the Licenses. Failure to obtain a License subjects Corporations connng under the Act. as well as agents acting foi- them, to penalties as in the Act provided. These Acts with ex- planatory notes and the apju'oved Fornis for use there under will be found herein. The attention of Solicitors is drawn to the collection of thirty-four S]iecial Provisions suirable for insertion in charters, thereby giving such provisions ]»ermauency. These appear for the first time in this edition. They embrace provisions respecting Audits; By-laws; Direc- tors; Compelling payment of ]M'(>fits in dividends; Limiting membershif) to certain persons; Giving share of profits as salary; Respecting preference stock; Limit ing salary to be paid officers, etc., etc. VJ I'KKKACi;. ii; A s|K'rialIv pn'panMl Stsilciucnf of Lt-jjal Proposi- liouM of general and prartiral iiUcn'Hf, Ht'UM'tod from ('anndinn <*ase law Ix'arin^ upon tlu» promotion, inror- ]MM'ation and nianap'nn'nt of rompanies farranpod un- d«'"* tlu'ir i»ro])»'r licadinKxi, top'thcr with a Dijjrst of Lt'adinjf Enjilish Corporation ( jihcs will \w found for the first time in this edition, and will, it is believed, prove useful. Four new chapters on The Powers of Comiianies; on Officers and their Duties; on the Advanta}j;es of Ji Company over an Individual or Firm, and on Good Will, Cheques, etc., respectively, have also been added. Aniou^ other improvements whi<'h have been made ai-e the following;: — Each jtajje shows at the top, f<»r facilitatinji' reference, the Chapt< c or Act to which it be'oufts: an Index to the Forms, printed on coloi'ed ]>apei'. has been furnished and over ninety new forms, many of them official, and much information oblained from otticial sources, have also been added. The author ajjain returns his thanks to those {gentle- men who so kindly reviewed the chapteis submitted to them, especially Mr. J. M. Clark, Q.C., of T'ounsel for the Government of Ontario; Mr. (Jeorjje K. Liimsden, Assis- tant I'rovincial Secretary, and Mr. Georjie Edwards, F.C.A. His thanks are also due to Mr. F. A. Anjrlin, Parrinter-at-Law, who prepared the Diji'est of Selected Caiiadiau Company Cases. I.|! J. D. Wardk. Toronto, Iotii Ski'tkmuf.k, 1!Mi(). riU:FACKTO FIRST KDITION. Iliivin;; for soiiio vavH. in coniHTtion with his dntit «« in tho rioviiuijil Srcn'lnry'H Di'partnK'nt. Iind cliiirp' of tlic Mpplirntions for charters iiiuhM' The Ontnrin Juiiil Slany \NouId be of advantajj;e as well to in- tendinji apjdicants and the g».n«M'al pnldi<'. as to IMrec- tors, Shareliol'lei's and OtTicers of existing companies. Witli tliis object in view, the 1oli<»winj; jiaires have b-en prepared. .F. 1). Wardk. Toronto, July, lS.S-4. PREFACE TO VOURTH EDITION. On issninj;' the Fourth Edition of this work, the autlior bejjs to express his thanks for the favonrabic reception the former editions have met with. As he lias before said, tlie book is not put forth as a \{^^i\\ text book, or as a comjietitor with tliose nnmer<»us and com- ]»reljensive vohimes wliich deal with the law atTectim: Joint Stock Companies in all its various details. Tiie aim of the author is to supply a useful, practical manual for those enjja.si'ed either in the formation of new co\\\- l)anles, or holding oflice in those already in existence, and that may be of assistance to the lejjal profession, cctntaininy:. as it does, a complete set of forms ajtjtrovcd of by the Departments char^ iiiin Juiiit Stock (^)IllIlnlli('s 1-14 ('irAI'TKU II.-Dffinition of a ("omiinny. i-t.- ir.-lti CIIAl'TEU HI.— ProiiKition of ('omimiiy IT-i.'i C'lIAl'TEIt I v.— Forniiitioii ;\\u\ Iiuoriioiiitinn of rom- piinics 'Jii-40 CIIAI'TIOK v.— Directors 41-t;0 CHAPTEK VI.— Olli.crs. thi>ir Duties iiinl I'ow.ts t;i-07 CnAPTEK VII.-M.MtiiiKs . tiS-93 CHAPTER VIII.-R.v-laws. Books. Amlitois. Coiitiaots. Seal '. n4-U9 CHAPTElt IX.-Slo.k. Calls, etc 1-J0-1 a}ir(>ement of the renminiu}; ]>ai'tners to indemnify him; if that apreement is not performed, he may have to pay the creditors or become bankrnj>t, even though years mav have ])assed since his retirement. Further, the re- tiring: member may even become liable for the subse- quent debts of the firm, unless his retirement is adver- tised and existing? customers notified. Rut in the case of a company the retirement of a shareholder is effected without diflficnlty. He sijjns a transfer to the ]»erson who takes his ])lace. this is rejjis- lered in the books of tlie company and the transaction is [Ch. 1. veil ruin lln' lows. lor lu' to anollu'r, on desire to ; jis scciiril V. If you, JIS a jn'iviitc von- (M'cst as col- your jirivate credit of tlic nil- company not atfected o a coni]>any I'e its jM'otits It. cs, the eon- educed, and i-eover. a re- istinj; debt.-* rely on the eninify him; have to pay lous'h yea 1-8 Ither. the re- ' the suhse- nt is adver- I'ement of a He sif?ns a his is rejris- lansaction is Ch. 1.] (JONVKKSION INK) JOINT STOCK COMI'ANIKS. ') complete, Tliei'e is un need to fj;ive notice by publica tion. or by circnlai' or otherwise, and the letiriii^; mem ber is entirely freed from the debts and liabilities of the corporation, jiast as nv<'II as future. Suppose your partner dies, his execut<»r or admin isti'ator may he directed t<) withdraw the money from ihe firm. This nniy happen at a ,-ritical time, and the result umy he ruinous. If the busitu'ss is incorporated, the estate may sell the stock but ii can withdraw noth- iuji' from the business. If iiKMMporated. your interest in a cmupany will be worth to youi* es'ate and family more than twice what it wouhl be worth if you had i'emaineod-will of the business which you have woi'ked so hard to build u|». in a conservatively conducted hiisi- ness. the ^ood will is sonu'times worth as much as the lanjiihie assets Is not the truth of these matters seen evei-v d av? l.o(»k at the i-icli men in this counlrv. Are Ihev niakinj money as partners, av fi-om companies' Are not the jireat nuijcu-ity of oui' w<'althy men carryinj^ on business nnK.\ KI'ITS. To appreciate the advantayc of " limited liability," one has but to consi) Suppose a man with a fortun<» of ^r»().00(» be a l)ai'tnei' in a coneern in which he has invested !ii«r),0(>0. He desires lo limit his liability to the .i?r),n(M). He cannot. If the firm fails, the whole of his fortune may be swept away to pay the creditors, even thotiffh the failure uuiy have been caused by the dishonesty or im]ii'udence of his ]»ai'tnei's. or of some person in the en»|>loymeiif of the firm. (r) Sn]»i)ose A.. Ji., and C. to enter into partnership upon an ajireenient that each shall contribiite by way of caiiital .S'-'.dOt!. vi/... .1j(l.()(M> down and >?1.(MI0 when wanted, and that the liability of each to creditors shall be limited to the amount so ajjreed to be contributed. Tliis attem]»t to limit their liability is void as to outsiders; and if debts are incunvd. each j)artnei' will be liable "to his last dollar and his last aci'e" to i»ay the creditors in full. But the rifior of the common law has been relaxed by the leiiislatuiH'. which has enabled pcM-sons at a trillinn expense to escape from the burden of unlimited liability. They have merely to convert their business into a limited com]»any. under the Joint Stock Companies' Acts, and in exei'cise of the jiower given by those Acts, they can place such limit on their liability as the dictates of pru- dence may suggest. These limited com])ani(»s. in the woids ot the late ]\raster of the Kolls (Sir. G. Jesseb. one of the ablest of English Judges, "are the olTspring of a proved necessity. that is. that men should be entitled to engage in com- mercial i>ursuits without necessarily involving the whole i I iimil in th parti into deat cai'ri( attaii I)erso iindei liabili he CO eultv inelint Cli. ].] i;x.\mi'm;s of casks m- cunvkusion. of ilicir fortune in lliat iKirtirnlar pursnit in wliicli lli<*v sire t'lij-MKed." .1. KxAMPr.KS OK Tasks ok CoWKUsrox. It niJiy be ronvt'nicnt liet'c to {jive a few cxiiniplcs ol' ciXHCH coniinonly occui riiifj in wliirli IniHinosH concerns nre converted into companies ^vitll a vi(>\v to oMaininy: limited lialiility. (a) A tirm coiisi;.ls of several memlters. cadi oi' wliom lias a«-cnmnli>ied some private means wliicli he is desircMis <»f fi'eeinj; from the risk of trad*'. To elVecl this they convert the Imsiness into a eom|iany. (Ii) An individual or a tiiiu is ('n<;a^(>d in a pi'otilalile Itut speculative liiisiness. out of ihe prolils of whirh he uy they are enalded to make saviu^ts. In ordei- 1o pre serve these savinj^s from risk Ihe l)usin<'ss is rouverled into a company. {(■) A fii'm consists of several memhers. one of whom is entitled to the ^-realer pail of the capilal. and also has private means, lie is disposed to retire on ihe for tune he has accumulated. If his liahilily could he limited, he would he williii};' to leave i)ar( of his cajiilal in the business, and to assume the posilioii of a sleepiiijn pai'tner. This can he elVecled by roiiverlin;; ihe business into a company, and il is accordlniily iii!ip:ci-s. A( roi-«liiip:ly (licv ronvctt it into a roiiipiinv. (/') A ciipilsiliHt is wiliin;*' to Hii|)|tly n imthom oi- u (Inn cnpipicd in tiiidc willi additional ital in ronsid- «>ralit wisii to incni' tlu* liabilities of pai'tncisliip. lie tlicicfoic stipii lat<'s that tin* hnsincss shall be conxMn'tcd into a com- ]iaiiy. Il<> will then btin^ in the additional eapital b.v takin^r shai'es in the company to the amount a;^'i'ee in rash. In such a case the capitalist veiy commonly stipulates that 1i(> or liis nomi- nee shall be one of the ur- \uii to d<*velop it, but with insnlhcient means. He wants to retain the jtatent. or a lar^^e interest in it. and pei'son- ally to work the concern. A cai)italist is found, who i8 willinji' to j>rovi«le the neces.sary capital in consideration of a shaie ttf ju-ofits. but he wants to have a voice in the management, :ind is not pi-epared to incur unlimited liability. Accordin^ily the concern is conveiied into a company, and the owner of tlu' patent and tiie cajtilalist y imlustry and attention, for many years of his life, he has estab- lished a su<'cessful business. The greater ]tart. if not the whole, of his means is invested in his business. He has become advanced in yeais, and has a family for wliom ho must make provision after his death. To with- draw any substantial i»ortion of his capital from the business would be fatal to its success. To keep it as a ^oinn concern is essential, as, once a manufacturinj? business be stopjied, the value of its plant and machin- ery, as well as of its connection and jiood-will, is i)racti- i M UU out and an ( and Cli. 1. 1 ONK MAN COMPANY, I ally loHt. If tlu' IxiHiiM-Hs l)<> i'slii|i, lliis |t)irt)ii'rslii|). npoii tlif ilriith of i\ |iiirt iht, Imtoiid'H (lisHolvrd, jllid IIh' cilpitiil of tlit> f can procure sonie (»lli<'i- |M*rson with ciipitul to take the <1eceasany. The capital in such a i'iin|»any renniins fixed, and cannot be withdrawn. The unbroken continuity of the coiu|»any continm's. nolwith- siandiii}; deatli oi* other chanjies annmy' the shari'holders. The ;5ood-will. whicli in many cas.'s is a \aluable asset, is not interfered with, and each share in the company benetits thereby. The iuilividual's former capital in his business is now repi-esented by shares in the joint stock <-onipaiiy. These shares c;in be dis|(osed of durin*.; his lifetime, or h\ his will, ami his family jM-ovi«b'd for with- out injury to Ids Imsiness. The sanm consihan Williams, .1., and the Court of Ajrpeal held, that where one man had an overwhelming- ju-oportion of the shares of a company, and tin* transjiction was in other res[>t'cts tainted with 10 "one man company. [Ch. 1. bad faith, Iho individual wliar<'lioldoi' inij::ht Im» ixtsou- ally liaMc for llic debts of the company ((/). lint the House of Lords lias overi'uied this decision, and has held that if the eonij^niy is incori»oi"ilt'(l according' to law. even if six of the shareholders hold only one share each and the seventh holds twenty thousand, the court cannot }{o behind the certiticate of incorporation and inquii-e whether or iiO such a "one man" company is what the Legislature intended when jiassiu}? the Coni|>anies' Acts, It was expn^ssly lu'ld by the House of Lords that the company was duly foi'ined and re;.iistered. and was not the mere "alias." or ajient of, or trustee for the vendor, and that there was no fraud upon creditors or share- holders (//). "The Statute." said the Lord <'hancell(M', "enacts nothing as to the extent oi- degi'ee of interest which may be held by each of the seven, or as to the ])roportiou of interest, or influence }»ossessed by one or the majority of the shareh<»l«lers ovei' the othei's." l^ord MacNagiiten also said, "There is notlv'Mg in the Act re(|uiriiig that the subscribers t<) the ni norandum shouUI be indepen- dent or unconnected, or that thev or anv of tliem should take a substantial interest in the undertaking, av that they should havt' a mind (;r will of their own, as one of the leained judges seemed to think, oi- that there should be anything like a balance of power in the ccmstiliition of the com]»any." The cardinal princij>le of cori»oralion law was thus lully vindicated. This judgment was f'>!lowed in a recent Ontario case, RicUe \. Held. '2i': Ontaiio A]»]»eal li(^|)orts. page r)4, and the following extract ironi it (juoted as stating the law very clearly: "Once the company is legally incor- p«u'ated it must be treated like any other independent l»erson with its rights and liabiliiies ai)j>ropria1e to itsc If. and the motives <»f those who took part in the ]tronu>tion of the company are absolutely iri-elevant in dis<'ussing what those lights and liabilities are." ('() Ih'o lerv v. Siilniiiiui, (l.s:i.")| 2 ('haiiL'ery, H-JIi. {hi tjaloiiiiui V. Siili)m;iii cV Co., (l^'IT) A. ('. 'J'J. I 1 tak< Ml [Ch. 1. Cll 1.] INDUCEMENTS TO FORMATION OK A COMPANY II Itnt the lias hi'kl to law. ure each t oainiot iiKluii'c vhat tlu' es' Acts, that till- was not ' viMidoi', u' shavo- " ciiacls hich may ►oi'tiou of niajlic 1h(» necessary anies: f.;/., the rule that dii-ectors arc^ limited a^M'uts of the company; the advanta^ies of cori)orate existence as rej^ards suiii"-' and beinji' sued. li(ddin.. and ('. in part nei'siii|». A. lieitm' entitled to half (lie capital, and !5. and < '.. cadi to a quarter. The tirst ste]) is to asceitaiti tlie value <\\' the busi- ness. To ari-ive at this a valuation \\ill be made ol ilie assets of the lirm. inclndinjn' the judod will, the slock in trade, business premises, moneys, bills, noies. and book and other debts dm' to the tirm; and an account will be taken of the debts and liabilities of the liini. The 12 PUELIMINAUY STEPS TOWARDS CONVKKSION. [Cll. 1. ruination jiimI iiccotint jti't' soinctinu's made and taken by the i»ailn<'is, and soinctinics by some jteison a]>i)oint»'d by Iheni. Yory <'oninionly the valnation and account arc Tiot made or tak< n in a detailed manner, but the ]>osition is i'on}j:lily estiniate, desire to incur no pei-sonal liability to tlie creditors of the comjtany: tlu\v are will- in};: to hand over the business with its assets and liabili ties to the comjtany, but desire, if the company sliouhl be unsuccessful, not to be undei- any personal liability to pay its debts; they wish the remedy of the creditors of the company to be exclusively ajiainst the assets of tlie company. Whei'e this is (he desii*e of the pai'ties, the conversion must be effected on the foolinji' that the owner uv owners shall r<'ceive the value of the business in fully i»aid-up shares. Tpon such shares there is no jx'rsonal liability. They entitle the holder to votes and diviply .fl(>,(HIO additional workinji' <'api(al if re(|nired; in sm'h case the conversion will be ctVected on the foot- inj;' that he shall receive 1*. (►()(> shares of i^'M) each, with i^-Ti pel- share credited as jiaid ui»: he will thus be liable tt> i>ay ui» the balance of .fo per share — .IJnK !,()(►( I — when re(|uired, but will be under no further liability. In the ]»resent case we will suppose that .V., R., and ('. d<'sire not to be under any persona! liability, a«('ord- injily they will receive fully paid-up shares. Ch. 1.] CONCERNS CONVEKTKI) INTO COMPANIES. 13 Tlicsc inii«)rtimt ]»(>iiils liaviii}i been sctlh'd, th«' forms iMMcssai'v t'oi* iiir|>(»rnti<)n Jis set out in rnrt II. innsf be incpan'd. 7. SoMi: iMi'oirr.wT Cnxcicuxs that ii.we ('()X\i:uii:i> Tm:iK lirsixi'.ssics ixto -loixr c^tock Compaxii-.s. Capitiil. Anu's-II(>l(l<'n CoiniKmy (Itoots) | S<»(M><>«^ I!r(»\vn r>V(>s., Limited (IJoolvSi 17r),(MK) llroiisous am] Wcslon Lumber Companv r>(H),(IO(> <'arliu^ r»i'<'winj«- and Malting- romitan.v 12()(>.(!(M> Calvin ('(»ini>any (SliippiuH:) ::(MMH OI» rowan Company (Cocoa i ."»(». (KiO lMinloi» Tire Company l.OMO.OOO 1 Davidson and Hay Comj)any KJi-orcrs) lOO.dOO !•;. 15. Lddy Mfj,'. Com|>any (Woodcnware) :5(MMMM> llby. I'dain Comi»any ((Iroccrsi 15(1. (KM) Ceo. L. Tucl<«>ll and Son Company ('hdiaccol. . nOlt.OIMI (ia\il( iiroiliers <'ompany (Dry (Joods) T."().OI)() Coodciliam and Worts Company (Dist illcrsi . . 2.0(MI.(H»lt Harry Webb ComjKiny (Ualiers) !)(».0(M) llendrie and (Nunpany (("artaji'e) liOd.tKlO Hiram Wallxcr and Sons (Distillers) .'.OIKI.IKIO •I. I). Kin^- Ccnnpany i Hoots) L'r.O.dO'l ■lames Koberlson Ccuiipany (Metals) T.I'l.dOO .l<)lin Abell Kn^iiue Works r>lMI.(»(»ll .1. V. Wiser and Sons Company iDistillersi . . . niMLOOO Nasmitli Com|>any il?akers) l(M).(Mi(t O'Keefe Ib'ewery Com|»any C.OO.tlO » |{. S. Williams and Sons Company (Pianos) . . . .■(lO.ODU Uany (Ifai-dware) ntlO.tHKI S. Carsley Company (Dry (Joods) 100,(1011 li 'M 14 CON'CERNS CONVERTED INTO COMPANIES. [Ch. 1. Capital. T. Eaton Company (Dry Goods) ^ .~)0().000 W. IT. Comstock (Medicines) oOO.OdO William Davies Company (Pork Packers) 250,001) W. R. Brock Company (Dry Goods) 1,000,000 W. A. ]\rurray Company (Dry Goods) 000.000 William Tinck Stove Company 100,000 W. E. Sanford Mf}?. Company (Clothing) 300,000 W. J. Gage Company (Publishers) 200,000 [Ch. 1. Capital. 5(H),00() .100.0(10 250,000 1,0 NoI'ICK. ft. Sl'MSCUlMKHS TO SrocK- l)0(>K >IAV r.K l')()rNi> AI.'llloroM No SrocK Allo'iiki) Tiikm. 10. AlAKItlKH Wo.MKN AS .Sl'l5S('l!ir.KI!,S. 1 1. [nKAN r AS A Si'liSCIilMKIt. 12. Al.lKNS ANI> Xon-|{ksi- DKNIS AS Sri'.SCKIMKItS \'A. IMtKLIMINAin' Kxi'KNSKS. 14. KKi'oNKitv OK l)i;i'(isi r. to prevent com- st of production, ^vever obtained a 112 now used to for the purpose mpetition by the [decrease the cost lecrease the uum- them into eu\- persons or com- loting or carrying Irging some trust. Irs of a Syndicate Vlv drawn agree- 1. FoR.M oi- Tkosi'ia ITS [ii\. A (•(Miiinoii. lluMigh not an csscnliiil in-crmiiiuivy to llic iti<»ni()li(>n jind foi-ninlion of jj coininmy. is (lie issue of a |)i()S]t('ctus. Tliis (locuincnl is intended to set f(nth to llie public sueli details of the ]>roposed sclieuie as will enable tliein to ju]>licalion f»M' shares. The nanu's of tlie dii'ectoi's always, in the interest of the com- pany, itself, form ])art of the |»i-(>s]>ectus and other jmblir announcements, in order to «'nable the ])ublic to judge of the advisability of taking jtart in tlie scheme, and tliese names can always be verified by the books and records of tlie company. (a) See Form imnt. W.S.D.M. — 2 IS MISIIKPKKSKNTAI |()\ I \ I'UOSI'KCII'S. [Cli. :}. ("ll 1'. Ki'i'i;fi' ()i- Misijil ('llVct of such a cii-culiir liiis from (iiuc to tiiiic been iiiiK'U (liscnHSi'orated under the Ontario Act, the ]»ros])ectus should be framed with due regard to c. 2\(\ K. S, O, (n), and the ]M'ecautlons there suiiji'csted should be adopted. As to |2): What facts are material to be disclosed, and how disclosure can best be made without unduly depre<-iatini' the untlertakinji, requires judf;inent and familiarity with the h'j;al decisions. If the i)rospectus is not ])roperly framed, shareholders Avho have been deceivetl can take proceetl- inj?s against the company to get rid of their shares and recover their money, but not a day should be lost after discovering the facts. ^Moreover, in certain cases, they can bring actions for compensation against the directors and others. It has, however, been held that '' in an advertisenu'nt of this descrii)tion some allowance must always be made for the sanguine expectations of the x>i*omoters of the adventure; and no prutlent man will accept the pros- pects which are always held out by the originators of every neAV scheme without considerable abatement." (a) See Post. Ch. 'A.\ MISIiKl'UKSKNTATloN l\ rK()Sl'i:( TlS. 19 1)111 (iiiio to '<;ill*(ls tlu' 'liiis it liiis lis (Iocs not Ic liiis hrcli ;1 by will 111 u by willul L't aside as s to canci'l 11 (liscovn-y 'diiif's have vei'tisenieiit ys be made )ters of the it the pros- }i|;inators of tement." ^\'llil(' siicii a simple commeiKhition will not treale liabiliiy. on the oilier hand, no prinleiil man will takt part in llie issne ot a pi-ospectus, or allow it (o be issued in his name, niidl he is salislied (hat (he |>rospe(tus snii standally eomplies with the law. and (hat he will be able to defend liiuise!!' in the e\eiil oi' pi ui < ctlin^s bein;^ taken against him. In the Temix-rance C'ohmizalion Company v. V;\'\V' lieldl'O: — The plaintilVs, a company toi'iucd lor the pur- pose of col(Mii/in^' land iit the Noi'thWcst Territories, represented to dcl'ciidant by means (»l an advert iscmeiif issued in a daily paper, that tli«' l>oniiiiion (ioscrniiieni had ajiiecd to the selection by the coinpany ef a ''com- pact choice tract of land " in the said Terriit)ries. '• coni- inisii)};- L'.(!(l0.h(M> acres, lor the i»nr|iose of settlement, free from the use of intoxicat inj;' liiimtrs." The ilefeii- (hint, on the faith of tlu'se representations, desirinj;" to send Ids son to a jdace where he would l>e |)i'ecliided from llie use of intoxicatiii}'' liquors, eiitei'ed into two a-ireciiH'.its with the company. a<;reeiii^' in each " to |nii'- chase and pay for .'?2() acri'S of land, in the order of choice from tiie oihl numbered sections of our lands as ])rocnred or to be jn'ociired from the Ihnninion." and l)aii'eenients thereby, was there- fore entitled to have them rescinded, and to recover baS( rilxM" for a ccrliiiii umiibcr of sliiircs iit llio fool of Ji prospt'clus of a i>i'o|»os(mI ('oiu|»auy, in wliicli it was sta1<>«l tliat the capilal was to bo 175,0(10. Without D.'s knowicdjie or acqniosccnco, tlic conipjin.v, iis iiftci- wards iiit-orpoiatcd, had a capital of !!i!ir)0,00(l. In ac- (ordiincc with the Icrnis of the snhsciiption, and Ix'foic lln' incor]ioriilion of the company. 1), ]»iiid up hnlf the amount of his shares. There was no allotment of stock to D., no enti'v of his name in any stock-hook, and no actlnj^ on his part as shareliolder. The comitany ImIujj: in process of liital still unsubsciibed). are usually entered into by an ai>i»lication for shares on the one hand and by an acceptance of such ajtplication on the other. In practice, the api)lication is }]fenerally a printed form of request, addressed to the secretary or directors of the comi)any, or to j>ersons named by the ])rojectors. and exi)ressin}; an a}>reement on the ]»art of the a]>j)li- cant to take a certain number of shares in the company, or such snuiUer number as may be allotted to him. The form is siany a ind obtains The ]>ay- le when the KED BEFORK r form it is H\yment of a ares applied Ch. 11] AI.I,<»rMi:N'T (>!■' SlIAItFS. 21 foi-, and may, like any other olVer. be relratted before it has been accepteress has be<'ii accepted. Ibit a revocation received alter notice of acceptance has been posted is too late, even tlutu^h the leltei- (d" revocati(»n is written and posted before the letter (d' application is r»'ceiv«'d. (5. AT.r.oTMi-.NT oi- Sua in:?. The allotment of shares will be elTecled by a resolu- tion or resolutions follows: Am.otti'.I': NfMiu'i! oy SlIAliKS. Denoting imnihi'rH of | sliivrLs.botii inclusive. I I FiioM. A. li. (J. I). etc. Ti'ii One hmnlreil etc. 1 10 U 110 etc. etc. "Ami that the secretiivy ilo a'wo notice of allolnient to the ahove named persons respi-ctively." 7. LkttI'.k oi- Ai.r.or.Mi-.XT. Tf tlu.' a])plication for shares is acceded to. a letter of allotment is usually sent to the aj»p1icant. iuformin a|)]di('iinl. l^nl«'HS under sjicriiil cii'cutnsliinccs. noiicc of iillol- nicnt must he j'ivcn lo llic iipjdiciinl <»i* his Jijicnl in ordci' 1(> bind Ilic JilioKcc, Notice by posi is sulVicicnl. even if (lie notice sliould fiiii to I'eacli the allottee or his a^ent, eilliei* owin}; to the default of the allottee oi- to some casualty in the i»ost ollice depai'tment. It is not. hoAvevev, necessary to prove express fcM'mal notice of llie allotment, it is sufllcient to show that the allottee in fact knew of it. IVrsons named in the chai'tei* of a comjjany as sliarelnddei's are liable as such for calls which may be afterwards made ujjon tin' stock stated in the charter to be lield by them, and no further act of the directors in allottinjT sucli stock or jiivinj? them notice of allot- ment is necessary {/i). {>. SunscRinisUS to a Tomi-axs's Siock I'ook 'Slw vaz ■ I'oi'xi) ALTiiorfJii xo Stock is Ali.otti:i) to Tiii;m. In the Queen City liefininf; Company id" Toronto, (Limited), in the winding-up ]H'oceedinpeal (c) for Ontario reversed the Chancellor's decision and held that such Ji subscription as this was in that case, with a request to (rt) /;i re London Spoalccr I'rintiiiK Co., 1(5 Appeal Reports .^)08, followed. In re Ilasp'i't Bros. Miinuf:icliirinK Co., Peaker and Ruuions Case, 19 Appeal Reiiorts, ,"»82. Also Weddell's Case, 20 Ontario Reports 107. {b) 10 Ontario Reports 2(54. (c) Cox's Case, Ki O. A. R. 543. Ill luilHl lie ice <»l' illlol- is ii^M'iil ill s siiniciciil. ollcc Ml' liis lot Ice or l<» . It is not. lotifc <•!' Ill*' iiUollt'c ill (•(nni)nny ms licli liiiiy be llic cliiiflcr he diiccturs ice of allot - H»K ^IaV UK . TO TlIKM. of Toi'oiil<». , tlio Masl'T pon lilt' list iciilcd ii|n)n (ci's for stock lie (liroctors: llu' con tract and that tho vvo inodos of tment. This ISO, 17 O. K. I for Ontario that such a a request to ill Koports nOS. o.. PoaUt'i- ami Idoll's Case, 20 cii. ;i. M\lil!ICI» WuMKX AS Sf ItSi I! JltKltS, 2» \\;\\i' llic shares allMlieil, cnnhi not in the iiiismce of ;iiiy It eo;>iiilion hy the company of the jiosilion of tin- :ippli <;iiit as a slockhohler ahme ex pioprio \i;^ore crfiiii' ih<' liiiliilily there conieiided lor. II \v:)s jilso shew II in Cox's case lii:il llie roiiipiiny had not Healed the siihscriher as a shareholder. 10. M.\KUii:i» \\'i)Mi:\' .\s Siiis( kii:!:ily it is a settled i-ule that, where one subscribes for shares in the name of an infant, he is' liable jtorsonally to the coni]»any or the corporate credi- tors on the subscription. An infant's subscription must be repudiated within a ''easonable time after coming of ajje or he will be held to have ratified it. 24 ALIliXS AM) NON-ISKSIDEXTS AS SIRSCIUHKUS. [Cll. 3. The Ontat-io (V)nij»anios Act itMiuires the tipplicanis for incorjioration to be of the full age oi twenty one years. IL'. Ai.rKxs Axn Nox-FJi-.sir-KX'rs as SriiscRiisKKS. Xo conditions as to any of the applicants or direc- tors being British subjects or residents of the I'rovince of Ontario are imposed by the Conii»anies Act of that Province. The Dominion Act, however, requires that the majorit}' of the first or provisional directors shall be residents of Canada, and the Quebec Act requires that the majority of the first directors shall not only be resi- dent in Canada but shall also be subjects of Her Majesty. 13. PRELnilXARY EXPEXSES {(l). The ex])enses necessarily incurred in the promotion of the company, are usually paid by tl comi>any on its formation. But supposing' that circumstances are ad- verse; the company fails in arriving at incori)oration; considerable debts have been incurred in making sur- veys, printing prospectus, and otherwise getting uj) company, and the question arises, by whom are such expenses to be borne? Formerly it was supi)osed that all jtersons interested in the proposed company were partners and, therefore, according to the usual law of partnership, liable for the debts coutracted by the UKinaging committee; but it is now well settled that in the case of provisional committees, or the projectors of a company, there is no i)artnership between them, no common powei' of binding each other merely by such a relation; each binds himself by his own act only, or by acts which he authorizes. But where the subscriber had signed a deed authorizing the promoters to defray the? expenses incidental to the undertaking out of the de- posits paid for shares, it was decided that, although the scheme proved abortive, the deposits were not return- able. And the result of a number of cases ot a similar post. («) See Special Provision as to expenses, for insertion in charters, % ..J i. [Ch. 3. pplietints vonty one tll'.KUS. i oi' (lii'cc- rrovince ^t of that iiiros that •s shall be nires that ly be resi- 1' Majesty. promotion •any on its es are ad- )ri)oration ; aUing sur- fetting up 11 are such posed that ])any were iial law of d by the cd that in ejectors of them, no by suoh a inly, or by icriber had defray th(? of the de- houjih the lot return- a similar Ch. 3.] KECOVIiUV OF DKl'OSIT. or. character is, that thei-e must be somethinji to show nu undertakinii; Ihat (h'posits on shares were to be liable for expenses, in order to hold them when the scheme is abandoned. Where the forination of a com|tany is completed, the expenses may be paid by tlu' company in instalments spread OA'ei' a immber of years and dividends be i)aid in the meanwhile. 14. Kl'.CONKKV OI 1)1 'OS IT, The question of liability for the preliminary ex- jtens(^s of the company is akin to the {general (me of tlu' lifiht of the sharehohh'i's to <>et back their deposits, whei'e the formation is not completed and the schenu' falls thi'oufih, and the t the same or any less num- ber that you may allot me (subject to the articles of association), and I authorixe you to ajijdy the deposit of f \n the paynnMit of the preliminary ex]»enses of the company. (a) TliriiiK's Joint Stock rdiiipaiiic*. n in charters, I !,.. CHAPTER IV. FORMATION AND INCOKPOIIATION OF C0.MPAN1E8. 1. IncOKI'OUAI'ION — MAV HK ' 1). oivrAiNi:!) IN TWO ways: By Si'Kcial Acr, 10. By Li:ttki!s Pai kni. 1 1. 2. Si'KiMAL Pki>vi,si()Ns in 12. LlOI'IKUS Pai'kni'. 8. Na.mk ov Com I' any. 13. 4. Use or rni: Wohd "LlMIIED." 6. Ohjecis. 14. 6. Head Oefice or Chief Peace OF Btsin'ess. 15. 7. Residence OF Company. | 8. Amoun'I' of (Lumtae, i Nominal and Paid-up. May he Rejjuced ok Inch EASED. Division into Shares. A.MOt'NroFKACIl 8HAI!E. SlIAItES .MIS'I' 15E IN J)ECi.MAL Cl'UltENCY. FoHMEUEY Only Peti- tion eks iNCOUPOIiATED HY Lei'i EKS Patent. CoM.MENCE.MENT OF Bcs- INESS. NumkekofShakehoed- EKs Necessaky to Pke- seuve Limited Liajue- ITY. 1. iNCORI'ORATrOX MAY ]!E ( )l!TAIX I-:i) IX Two WaVS. Companies may obtain intoipoiation in Canada in two ways. 1. By special Act eilliei* of tlio I'ailiament of Can- ada, or of the Lejiislature of the Province in wliich the company desires incorporation. 2. By letters patent issned under the provisions of the various Companies Acts. IXCORrOKATIOX BY SPECIAL ACT. Where a company is incorjtorated by a special Act, its powers, i)rivile}i,es. liabilities, etc., are determined by that Act, and by certain fieneral i>rovisions a]»plicable to all such companies. These general provisions are contained in Statutes known as the "Comi)anies Clauses Oh. 4.] INCOKI'OltATlON I'.Y I.E'ITKIIS PATKNT. 27 < OV ;duced ok () SllAltKS. ACH ShAIIE. ST BE IN UENCY. )MA' PkTI- ;()ui'()i«a'i'eij Patent. i:nt of Brs- >HAUEI1<)1.I)- \KY TO PUE- lEl) LlAlUE- \-n Ways. Caiuulii in cut of Caii- » whicli the •ovisions of special Act, ei'inined by 1 a]»i»li('able ►visions are lies Clauses Acts.'' and lliey apply to all companies incoi'jxiratcd l)y special Act nnlcss cxcluck'd by. or inconsistent ^vitll. the terms of that Act. ((/) Tlu' vast majority of tlu' comjianics are now incor- jiorated by l.ottcrs Patent in ]»refen'nce to incor]toration under a Sitecial Act. as. unless the incorporators Avant special i)Owers and circumstances warrant tlie jirant of such powers, incorjioration by Letters Patent is much more desirable owinji to there l»ein«i less d«'lay and to the fact tliat subse<}uent chanjjes may be easily made. Incorporation i!V Letters Pati:nt. The lejjislatures of this country, with the exception of that of British Cohnnbia. aftl. wliiili by scftions • i and 7 thereof, is made to api)l.v to companies incori>orated by .si)ecial Act. The Companii>s' Clauses Acts are as follows: — Canada K. S. C, 18S(i, c. 118. Quebec K. S., iiuv., l.SSS, Articles 4t;.-)l to 4003. Nova Scotia H. S., N. S., r»th S(>ries, c. 7S. British Columbia li. S.. B. ('.. lS)t7, c. 4.">. In New Brunswicl;, Xova Si otia, Mauilol)a and Xorth-West Territories the usual method is either to incorporate in the Special Act of Incorporation in full all the retpiisite provisions, or to incor- porate by reference to the Letters Patent Act certain of its provi- sions, but, unless these are specially so incorporated, they do not ajiply. The followiufi amendment of the Rules, Orders and Forms of ProceiMlinns of the Ontario Lef,'islative Asseinlily, was approved of by Resolution of that House on the 'J."»th April. ItlOO. That Rule (>(• of the Rules, Onb'rs and forms of ProceediuKs of this House l)e amended by aildius; thereto the followinir:— And in tlie case of any Bill im'orporatin^r t comi»any. or in- r-reasinjr the capital stock of a comiiany alreaily iucorporsited. there shall be paid to the Clerk of the House, by or. on behalf of th(> ai)plicant, before tlie sime is r(>port(>d to the ITotise, tli(> satne f(>e as would be payabl(> to the Provincial Secr<>tary in the case of an in- corporation or increase of capital under the provisions of the Ontario Companies Act, less the sum of .SKIO already pi id to the Clerk of the House under the said Rule No. 53. P"P 28 SI'KCfAL IMIOVISIONS IX LETTKKS PATENT. [Cll. 4. ('li. countiios to liavo its drawbarks as well as its advan- tages. The eflect of this diflerence in method is to bring any proposed Joint Stock Company, for which incorpora- tion is songht, more directly under the scrutiny of the authorities, and to give to the Governor or Lieutenant- Governor in Gouncil an opportunity of refusing incor- poration, should it seem to him expedient so to do. 2. SrEciAL Provisidxs IX Letters Patext (a). Under some of the Companies Acts it is providrovision so embodied shall not. unless provision to the contrary is made in the letters patent, be subject to repeal or altera- tion by by-law. The im])ortani'l)oratioii be sued, ! and per- beinp; of ion." No corporate C'li.4.] NAMK or COMPANY. 29 body itself; if tliis is desired, application must be made to the authority from which its charter is derived. A takinpi' name is much to be desired for the purpose of desi^natinji: a business company. A sluut name — one that will exjiress what is wanted, and one that comes easily to the ton}.;ue — is always to be preferred. A lou};' name — or combination of names, particularly if thev are jtolysyllabic wor, incorporated under the Ontario (Jomitanies Act under the name of The ;Mai)le Leaf Kubber (Company. After the incorporation of the company it was made to api)ear 1h ' the distinctive wArds "The ^Maple Leaf" inserted in the corporate name of the comjtany. formed when associated with the device of a maple leaf, the reg;istered ti de-i . ■'■ which, for some years, bad been stamped upon the goods and wares of the Toronto Kubber Sho(? Manui'acturinji' Company, Limited, a conii)any incor- jmrated under The Companies Act (Canada) and as such trademark had become of great value to the said com- pany. T'pon tliese facts being br(»ught to the attention of The Maple Leaf Kubber Company, Limited, that com- pan\' applied for a ciuinge of its cori)orate name to that of " The Queen City Kubber Company, Limited." The William Davies Company. Limited, objected to the incorporation by Ontario Letters I'atent of a com- pany under the name of " The Toronto I'acking Company, Limited,'' on the ground that the first mentioned com- pany had, for numy years, iu connection with its busi- ness and with certain brands of meat used the words '* Toronto Packing House.'' To remove the objection tln^ Toronto Packing Company applied for a change of its name to that of " The Toronto I'ork Packing and P>eef Company, Limited." The Electrical Supply Company of Ilaiuilton, Lim- ited, incorporated 7th July, 1897, applied for a change of its corpon [•ate name to that of " The Electrical Power and [Ch. 4. llic iiiuue ^liirtril on iiiniciU: lo wliivli he I business ijection tlie iinj;e of its y and Beef iilton. Lim- clianjic of Tower andi ('I1.4. ISK OF IIIK W((l!l» " l.l.MIIKI). " :n Manufacturin*'- Company of Ilamiliou. Limited," to avoid iho liabilily of bein-;' (•(Mifoundcd willi tlie parlnerslii|> (•arrielaee in which the l)usiness of the comitany is carried OIK in a conspicuous jtosition, in letters easily legible; and sliall haxc its name with the said woi-d after it enj>raven in lejiible charactei'S on its seal, and shall have lis name with the said word after it mentioned in legible characters in all notices, advertisements and other olli- cial publications of the company, and in all bills of ex ( han.n'e, promissory notes, indoi-senients, cheijues ami orders tor mom'y or p,oods i>uri)ortiii,u' to be siiiiied by or oil behalf of such company, and in all Itills of parcels, invoices and receipts of the company. The Ontario Act, as amended by (>:*> \'ic. cap. 2:5, provides that: — (1) Wherever any otTrtce or phice in which business of thecom])any is carried on is indicated by any sijifu, name or other means on the outside thereof as beinj^ a place of business of the comiiany, the company shall keep in a conspicuous place on such outside, in letters easily lejii- ble, the name of the company, with the word "Limited " as the last word of, or as the lirst word after, such name, and the name of the comjiany, with the word " Limited " as the last word of. or the first word after, such name, shall ap|iear in a consiucuous ]»osition. and in letters easily legible. — ia) On its corporate seal; (//) In all advertisements and other ofllcial publica- tions of the company; (c) In all bills of ]>arcels or invoices of the company; (d) In all written contracts and undertakings of the company; 32 rsK OK TiiK woiu) " i,i.Miri:i).' [Ch. 4. ("h. (/■) In the coiiipiiny's sij^iiaturc to any bill of cx- <'hanj^o, promissory nolc, rndiHscnicnt cIkmiuc, order for money or jioods. (2) It shall be the duty of the director, manapn*, officer or other em])loye of the comi»any avIio— (a) INiblishes or canses to be i)nblished any such advns in the name of the <'ompany any such bill of exchanji'e, ju'omissoi-y note, endorsement, cheque, order for money or j^'oods — to comjily with the fore<>(»in}i- |>rovisions of this section, I'rovided that Avhere the word "Company." "Club.'' "Association" t>r other etpiivalent word foi-ms part of the company's corjxtrate name the word *' Limited " need not appear in full, but an abbreviation thereof, of which the letters 'M " and " d '' shall be the first and last let- ters, shall be snllicient. I'rovided also tliat where the word "Company," '"(Mub." "Association" or other equivalent Avord does not form part of the cori)orate name the word "Limited'' shall appear in full and in letters of substantially the same size as the letters in the rest of such name. I'rovided further that stami»intj;-, writing, printing; or otherwise marking upon goods, wares and merchandise of the comi)any, or njwn pack- ages containing the same, shall not be deemed an adver- tisement within the meaning of this section. n. The Objects, In setting ont the objects of the company for the purposes of incorporation too much care cannot be used, as a charter will be granted for those ])urposes. and those only, set forth in the notice or petition, and no change in or extension of sucli objects can be made by the shareholders of the compariy, however desirous they [Ch. 4. ("h.4.] (»ii.)i:< rs oi' coMi'ANv 33 bill of cx- ', inana^'iM', ) — 1 iuiy such blioiuioii; i\\ such bill iiu'li writii'ii \\y siicli bill iidorsciiU'iiV, this section, v." "Club;' rnis part of luitt'd " need jof, of >vhich !uul last; lel- whoio the or other corporate full and in tters in the stampinsj;', pon ^oods, n])on ])ack- d an adver- any for the not be used, rposes. and ion. and no be made \)y esirous they luav be of d(»in<;' so. e.\ce]>t by (■(»mplyino\ver to pursue objects other Ihau those express, -d in its charter, or such as are reasonably incidental there to, nor to exer<'ise its jiowers in the attainment of aulhor- i/ed objects in a manner n(»t authorized by the charter. The assent of every shareholder makes no dill'erence when the act is ullm rircs of the company and not merely of the directors (//). (I. Head Ori'icE or Ciiiiu- I'r.Aci'. (^)i- 15rsixi>?^. The various Acts re(iuire that the head ollice or chi(4' place of business of the ]»roposed coiu|»any should he stated. There are several reasons for this. A know- ledjic of the pro])Osed chief place of business of the c(»iii- })any is to some extent necessary, in order to decide upon the ex]iediency of ••rantin'; the charter, and, if jiranted, j^overns the question of jurisdiction and service of lejjal process. It also notifies the {general public as to the headquarters or lionie of the company. Where the Act under which incorj)oration wa.^ had provides that the head office may be chan.uiMl fiom one l)lace to another, the directors actinp; under a resolution of the shareholders to that effect can etlectuallv make snch change (h). 7. I\i:sinKxcF. or Com paw. A company resides in the place where its princijial ])lace of business is situate, and though consisting of foreign members, is subject to the law of the country la) Ch.arlobois, ot al. v. Doliip. ot n\., 20 S. C. Reports. 221. (6) Union Fire Insnranec Coiiipnnj- v. O'Gara, 4 O. 11. V>T>',). W S.D.M. ;5 ■Ba 84 AMOUNT (»[•• CAl'ITAI.. [CIl. 4. by which it is cicjifiMl. I( iiuiy possess in-opci-) y in f<)i'('ij>ii counlrics, Init it lias no Icujil ('xistciicc in siidi (MHinliics, nnh'Hs it is n'co^-iii/.cd h\ the proper Jiiilliori- ties or by comity; iiiui wiieii so reco«iiii/,e«l. it iiolds its pr<»|ierty under icrtiiin (pDiIitlciitions. in sulijeclion lo the law of tlie country where the itrojterly lies, and not to the law ot the country where the company resides. S. A.MorxT OK ('ai'ital, Nominal and Taid-ci' (V/i. P»y knowino- the amount of its capital the jtublic are enabled to determine what credit the comjtany is*. entitled to and the extent to which it may be safe to <;o in dealing- with it. The amount of its nominal capital must not, however, be confounded with its real capital or mistaken for its basis of credit. It only forms such basis when it is all subscribed by responsible peisoiis or aany to be paid uj> at once by the subsciibei'S or shareholders. TUo nominal capital, and tlui number and amount of the shaies into which it is to be divided, havinp,' been determined upon, and such shares haviufj,- been subscribed for. an instalment only of th(? money they represent is usually i)aid, and the rest of that money is left to be called and paid as occasion may require. Hence the distinction between juiiif-iip and nominal capital. The former is the money which the companj- has or has had; the latter, excei>t when the shares are issued at a discount, consists of the sum to which it is entitled by virtiie of the contract entered into by its subscribers and shareholders, including; the nominal value of any unissued shares. After a com- pany has been in existence for a lenjjth of time a know- ledge of the actual condition of its affairs is the only safe guide to its trustworthiness. Losses may have occurred in the course of its operations by which its (a) Si'o "Difference between Capital Stock and Shares of Stock," post. -'f [CM). 4. Ch, 4.] (Al'ITAF. Ol" (OMI'ANV. IV) njM'i'iy m (' ill such V iiutlKni- holds its jcclion !<► s. ami not ic'sith's. [D-ri' (")• the i)iil>lir oiupiUiy iv. safe to ^o nal (apilal •cal capilMl fonus Huch i»U' iKM'Sons iiniuf? of its > saui tixcd up at one*' Hill taiMtal, ito which il n. and such uMil only of tln' rest ol" casion may \)(ti(!-llll 511"^ which tho It when the the sum to Inct ontoiH'd (dndinji the tc'i' a *<)ni- Inie a know- is the only may have which its Ld Sliares of capital has luM-onie serionsly inipaired and as the iiiein hers cannot he looked to. where the capital is all paid lip, the actual means in the hands a\' Ihe company are all llial the jMihlic can rely u|)oii. " If Ihe company." says Tlirin;;', " intend to c(»iidiicl a Imsiiicss dependent in a jiical de a park. to make i;as wtu-ks, lU' to do anv other work in which the current expenses will he small as com|»ar<'d with the cost of actpiirin;; the properly, the capital should he of aosed [uirchases. hut neetl not leave a larj-c i-eserve. as there will he no dilliciilty in raisinji' money on the security of the ]»ropeiiy." And hy iinother authority, it is siiid that "the amount of the ca|)ital stock td a corporation is uoi per sr a limitation «d' Ihe amount of property, real or ]>ersonal, which it may own, (»r, hy im- jdication, of the amount of its liabilities or outslandiiij;- ohlifiations, but is rather rej-arded as Ihe sum niton which calls may be made upon subscribers, and dividends are to be jtaid to stocklndders. AccorrAV Be KKnrcKD or I\(Ri:.\SF.n. The company's nominal cai>ital may be reduced or increased from time to time as ciicumstances api)ear to warrant. The steps necessary for these purposes, which are set out in the Acts, must be strictly complied with. {a) Angell and Ames, Corporations, sec. 151. 86 CAI'IIAI- OF CO.MI'ANV, [Cll. 4. 10. Division Into Siiakks. The «liviHi«>n of (lie cnitiliil inio Hlinrcs is, of ('(nii'sp, Olio of llio iiiosi striking fciiliircM of ji rompimy or^tiiiii- ziilion JiH anies Act that one share of a company incorporated under it should be of the par value of $10, while another is of the ]>ar value of $4, that the Government would not be justified (a) Order in Council datvd 31st May, 1899. [Cli. 4. Cli. \.] SIIAUKS IN DKCIMAL (MllllKVi'V 37 llM'I'sllip. .,iy uii- iicnt of its ■rally (lisil »f its tliiof •i'it<'i'. " is a 1' iicronlinji jtM'is of tlu' »! advisalfli' Hi" view of vuicrly, < llian uiit of riu-\i ;t a tut OS, ox- !('/), it is ir coinoany lino of less Ihe Ontario patent con- the capital laUe the new ires, the ap- is so clearly npanies Ad (lor it shonhl s of the par be justified i in issninj; lottors palcnf conlirinin^ a l»y-ia\\ which immi- tcin]>lat('s this. It is (|nil(> clear thai had it lioen pro- |iose«l to create by the (m ifjinal charter shares of ordinary stock of dltVerent amounts, such a charlei- \V(»uld nol iiaveheen j;ranle«I. and the i»rinciph' which \V()uld h.ive prevenied this niusi be hold to apply lo supph'nicntai'y i( Iters patent." The issue of such s\ippleinentary let- ters patent is a mailer of discretion on the part of lln' Iiieulenant-(Sovern(M- in Council. iL'. Sii \ui;s Mi'sr r,i-: i\ Diximai. Cvkkkvcv. Shares must be in decimal curremy. An applicali<(n few the Imorporation of a mininj; ((unpany under lln- Oiilaiio Companies Act with shares of the value of one sliillinjj was. havinj; lejiard to the fact that the lawful money of Canada is the (U'cinuil currency of dollars and cents, refused. II). FoUMlMUA' OXr.V rKTlT[iior to tlu* incorporation, as the shareholders at the date of the issue of the letters patent were those persons only who were nanu'd therein and to whom stock was allotted thereby; and it was those jier- sons and others who mifiht afterwards become share- holders who constituted the coin|>any. This was d«'cided in Tilsonbnrj? Aj;ricultural ^Ianufacturin<;- Company v. Goodrich, tried in the lli<»h Court of Justice, Toronto, in 1885 («)• 111 that case the defendant with others aj^reed to apply for a i)atent for a couij>any i'ov manu facturing purposes, under K. S. O. (1877), c. irtO, and si; for certain shares and agreeing to pay therefor as provided by the Act ami the by-laws of the company. Subsequently n jtelition i>ur porting to be by thirteen of the subscribers, but oinittin;^ the defendant's name, was juesented to the Lieutenant- Governor of Ontario for a patent incorpoi-ating the i)eti- tioners and " such others as might become sharelioldei's ill) S Ontario lU'iioits, SIm, Q. B. D. 88 COMMENCEMENT OF HUSINESS. [Ch 4. ill the compjiny thereby created a hody (orporate,'' etc. The stock list, however, subscribed by the defendant api»eared to have been filed in the office of the Trovincial Secretary. The petitioners were accordingly incorpo- rated, " and each and all such other person or persons as now is, or are, or shall at any time hereafter become a shareholder or shareholders in the said company under the jirovisions of the said Act," etc. The defendant did not subsequently to the incorporation subscribe for stock, but on the contrary rei)udiated his former sub scription: — Held, that the defendant was not a stock- holder, and was, therefore, not liable for calls on the shares which he purported to have subscribed for. Also in Magog Textile and I'rint Co. v. Price (a), and in re London Speaker I'rinting Co. — Pearce's Case {b). This difficulty has been dealt with by sec. 9 of the Ontario Companies' Act, which provides that the Lieu- tenant-Governor in Council may, by letters patent, grant a charter to any number of persons, not less than live, who petition therefor, creating and constituting such I)ersons and any others who have become subscribers to the memorandum of agreement, a body corporate and politic for any of the purposes or objects to which the legislative authority of the Legislature of Ontario ex- tends, except the construction and working of railways within the Province of Ontario, the business of insurance and the business of a loan corporation within the mean- ing of llic Loan Corporations Act. i '41 I 14. Commencement of Business. A \arter having been obtained and other prelimi- nary matters settled, it is competent to the company to commence business forthwith. Under the Dominion Act half of the total amount of the capital stock must be bona fide subscribed before applying for a charter, and it is not, as a rule, considered necessary to stipulate (a) 14 Snproino Court Reports 0()4. (ft) 10 Appeal Reports, 508. [Ch 4. orate." etc. defendant ri'ovineial ly incorpo- pei'sons as r become a pany under fendant did hscribe I'or former Hub lot a stock- alls on the )ed for. V. Price (a), ce's Case (b). ec. of the at the Lieu- atent, jjrant ps than five, tntinj"' such subscribers porate and which the )ntario ex- of railways of insurance n the mean- Oil.'*.] COMMENCEMENT OF BUSINESS. 39 I I i J beyond this, that any ])articular proportion of the stock shall be taken up before enteriuji ujmn tlie objects of the company, the persons who have subscribed the first half beings themselves most interested and best capable of jud}'inj«- of the ]M'o])riety of the step, lint under the Knjilish system, which makes no such ]»rovision. it is not unusual for the shareholders to stii)ulate. in order 1o ])rotect themselves, that the business of the company shall not be entered ujton until a certain nundK'r of shares have been subscribed. It was. indeed, at one time discussed whether or not a ct)mj)any couhl comuuMice business until the whole of the shares had been sub- scribed, but it has been scuttled that apai't from exju-ess statutory provision, there is no restriction of this kind. It is no defence to an action for calls to sa\ that all tlie shares have not been subscribed. Nor will a Couit in such case interfere to prevent business from beinj;' commenced. And under the Dominion Act the inten- tion doubtless is. that the company may commence their transactions and call upon the shareholders to contri- bute, as soon after the issue of the letters ]»atent as the directors may deem expedient, whether or not a sinjile share has been subscribed for beyond the number neces- sary to obtain the charter. And if no business is en- tei-ed ui>on within three years under the Dominion Act. or within two years under the Ontario Act. the charter will be held forfeited bv nonuser. 15. Xi'MRKR OF Shareholders Necessary to Preserve Limited Liarilitv. ler prelimi- company to Dominion stock must r a charter, to stipulate Section 100 of the Ontario (Companies Act provides that where " a company carries on business when the nundier of its shai'ehohlers is less than five for a ]»eriod oi' six months after the numbei* has been so reduced, every person who is a shareholder in the company dur- in}; the time that it so carries on business after such ]»eriod of six months and is co<;nizant of the fact thai I I 11 40 NUMfJEU OV SHAKEH()1J)EHS XKCESSAKV. [Cll. 4. it is SO carryiug on business with less than five share- holders shall be severally liable for the payment of the whole of the debts of the company contracted during such time." Provision is made by the section enabling a shareholder to exonerate himself from tliis liability. Having regard to this section, the sharehold«H's must be careful to keep their number up to five. This is not difficult to do even where the number is small, as a few shares may be transl'orr«'d to bookkeei"''-s or nominees of the ju-incijial shareholders. All that is required is. that there should be five names on the refjiister. The British Columbia Act contains a similar provi- sion. ^3 i I {Y. [Cli. 4. I five share- men t of the cted (luring 1 eiijiblinj; a lability, lolders must This is not ill. as a few or nominees luld be five niilar provi- CHAPTER V. DIRECrrORS. 1. Intkoductouy. •2. AccKn'AN'CE OF Offick nv J)lUECT<)l{S. 3. P(»\vi:i{ TO Fill Vacax- CIKS. 4. PowEii TO Rfmovk ])|- HKCTOIIS. 5. Pkovision'al DiiiEiToiis. (J. XUMHKll OF BoAlU). 7. Pi{i:ffi{Encf S ir a |{ k- HOLDKKS TO S ELECT DiKEcrous. M. Remuneuation of. !). Qualification of. 10. ])lS(^l'ALIFlCATION OF. 11. Retikement of. 12. Election of. LS. Teum of Office of. 14. PoWEUS OF. 1.5. Sr AIL'S OF. 1(3. ACT.S OF dc fdi'to DiHEC- Tons Valid. 17. iVcTS OF DlltECTOKS J5lNI)lS(i L'I'ON SllAHE- iioli)i:ks. 18. RiCiir OF, TO SEE Ac- counts, El'(,'. 19. CoNTUACTS UETWEEN 1)|- liECI'Oi'.S AM) Co.Ml'ANV. 20. Various Liabilities of DlltECIORS. 21. (jlENEItAL ReMAISKS CON- CERNING Directors. 1. Introductorv. One of the peculiarities of companies, as distin- guished from partnerships, is that the manajieinent of a com])any's business is entrusted to a few clioscn individuals, and that the shareholders are deprived ot that right of personal interference which is enjoyed by members of ordinary firms. The members of companies form two bodies, whose inti'iests arc or should be Ihe same, but whose powers and functions are diilcrent, the one body consists of the directors, in whom the general powers of management are vested; and the ()ther body consists of the shareholders, to whom the directors are accountable, and bv whom thev are gen-'r- ally appointed. Each of these bodies has its own si»here of action, and its own rights and duties. :*!! "W 42 POWEIl TO REMOVE DIllECTons. [Ch. 5. Ch II is to bo obscrvod that tlio dirortors of a company are all those j)ersons who are constituted directors by a conii)any's act, charter, or deed of settlement, and not onlv such of them as choose lo act. 2. AccEPTAXCE or Office bv Directors. An accei)tance of the ottice by one Avho is <'le(;ted director is necessary to constitute him a director. Some direct and positive act of acceptance is necessary. Whether a person once a director has or has not ceased to be so dejtends [except in the case of his death J upon the regulations of the cired unless 23 Chancery ■ i. I :* ■I .;l i 4 i ■I I t Cli. -V] I'KOVISIONAL DIKECTOllS 43 The shareholders of a comi>any cannot usually exercise any control over the management of its alTairs, except at meetings duly convened; ftu' the directors of a any; and ^vhere (lie nuiuage- ment of the directors is complained of, an aggri<'Vt'd shareholder should seek redress thi-ough the comi»any, and induce it to call the directors to an account. Where the shareholders conlirmed a by-law made by the directors fixing their term of oHianies' Act the by-law creat- ing preference shares may provide that the holders of shares of such ]irefereuce stock shall have the right lo select a certain stated proportion of the board of direc- tors, or may give them such other control over the affairs of the company as may be considered expedient (c). S. Ki':.MLXEKATI()\ OF DIRECTORS. Directors, in the absence of agreement or by-law, cannot, from the nature of their position alone, lay claim to any remuneration, however arduous may have been (fl) Cox .Toint Stock Conipaiiios, p. ,"0. (b) Chadwyck-Ih'iilt'j- Joint Stock Conipanii's. p. 1.31. (c) See Special Clause for iii.sortioii in Charter, post. ^ [Ch. 5. lall board of ?(! in pi'ofor- weakous llio says Cox (a), having largo I be no other Stock Coin- successfully [turpose and ason pointed question of ' are entitled thouyiit they ;he directors' of directors, isual to vole igree in the to appoint,*' ?n to manage al renin nera- e their best Directors. by-law creat- e holders of the right to ard of direc- er the affairs lent (c). t or by-law, ne, lay claim V have been Ch. 5.1 ItKMUXKK.VTloN OF J)IUE(TOI!.S. 45 Iheir duties. They occu])y the ]>osition, not of servants, but of managers and trustees. Directors have no j)o\ver to vote themselves fees uv salaries for their services be- yond what the regulations of the comi»any may ])rovide. In the I'nited 8tates it is said that directors aie not usually coniiiensated for their sci-vices as such. And in a nunilM'r of leading cases it has been held that the law does not imply a promise on the part of corporations to pay their directors fresident a salary of twelve hundred dollars for the year current, and ordered that a cerliii- cale of indebtedness under the corporate seal should be issued to him in said sum, ujion which the president caused the corporate seal to be attached to the ceititi- cate. There was no resolution of the stockholders voting the ]>resident remuneration for his services, nor was there any provision, either in the Act of Incorporation or the by-laws of the company, for such remuneration. Held, on an action brought on this certificate, that the president was not by law entitled to receive pay for his services, that the board of directors had no right to l»ass the resolution n'ferred to, that the act of affixing the corporate seal to the certificate was of no legal force, and it was open to the company to resist i>ayment in a court of law (a). 1.31. imst. (n) Steven's Digest, 340. if 46 KEMUNKItATlOX oF I)II{K( T<»US. [Cil. 5. Cll. 5 An«l in Wadd**!! v. The Onljiiio Ciiiminj;' Co. pi at, an action tried at Hamilton in 1SSJ>. where, in a coni- j>any eonsislinp; of seven shareholders, the ])hiintins, fonr of tlie sliarehohlers liohlinj;- twenty-tive per cent, of the stock, chiinied that there had lu-en niisnianaj-cnient of the company's funds in the i>ayment out of hirj^e stuns to the president and secretary, for salaries or services without any h'j^al aulliority theiefor, and in the failure to declare any dividends thouj;h the company had made large profits, and that no satisfaassed ratifying the payments made to the secretary; and at an adjourned meeting, of which also the minority received no notice, bv-laws weie passed ratifying the i)ayments made to the president and secretary: Held, that the resolution and by-laws were invalid, and could not be confirmed by the shareholders, and an injunction was granted restraining the company from acting thereunder, or from holding a meeting of shareholders To ratify and confirm same (//). Where an Act of Incorporation j»rovides that no bj-law for the payment of the president or any director, shall be valid or acted upon until the same has been confirmed at a general meeting of the shareholders, this applies only to payment for the services of a director as a director, and for the services of the president as presiding officer of the hoard {b). (a) 18 Ontario Reports 41. (b) Ontario Express and Trnnsportation Co., The Directors* Case, 25 Ontario Reports 587. Ch. 5.] l^rALll'ICAIluN OF DIUECTOUS. 47 j»' Co. el, al , ', in a ((nii- i i»liiinlilTs, |»(M' cent, of uauM^cincHt f lar};e hiuuh or Hci'viccs I the failure ly had made stl};a(ion or be obtained s iniposyihlo ndin}*'. Fn- of the coni- f four of tlie tter yroeeed- illejial pav- and without (eting or its le payments meetiufi, of H-laws were resident and y-laws were hareholders, he company meeting of es that no my director, le has been lolders, tliis a director ^resident as "he Directors* That the remuneration (»f the directors is contem- phited is clear, as the Ads of tlie various h'gislaturt's .niak<' tlie reniunerali<)U of the dir<'ctors one of the mat- tci'S for which the directors themselves may provide, subject to contiruuition by the shareholders at a genei-al meeting. — until which time, ua by-law providing for the '' |iaymeut of the president or any directiU' shall be valid or acted u]ton." Under these circumstan<'es. it is usual nnd expedient to settle these matters at the tlrst general nu'eting in orp('ars to bo. tliat if a person is not qnalifictl accordinfj; to the bylaws of llie eomjiany, nt the time of his election, the whole trans- action will be nnll, althonjifh a siitticient nnmber of sliai'eH be afterwards allotted to him, in order to qualify him for the i)OHition. Nor will th(» rnle be satisfied by a transfer to him of nominally i)aid-nj> shai-es. ]»nt if a ])erson accept an allotment of shares, and rovision for ihe dis- qnalitication of directors while holding oflice. thongh it may be presnmed, and section 42 of the Ontario Act pro- vides, that in the event of their ceasing to own and hold the reqnisite nnmb(U" of shares, they wonld be considered disqualified, and no lonj^cr entitled to sit and act as directors. But a mortf^age of liis shares by a directoi' wonld not necessarily amount to a disqualification. And, it appears, that by the laws of the Provinces of Ontario and Quebec, the rule would be the same with regard to a pledge or transfer of such shares as collateral security. In Phelps V. Lyle (o), it was held, that a director does not necessarily vacate his seat by becoming bank- rupt, unless so stii)ulated by the articles [or, by the by-laws] of the company. Nor does a prohibition in the articles against a director voting "as a director in respect of any matter in which he is personally interested" prevent him from voting as a shareholder at a general meeting in respect of snch matter. 11. Retirement of. Another point akin to this is the retirement of a director during the pendency of the period for which he was electee'. Ch (a) 10 Adolphus and Ellis Reports 113. Cli. 5.] DIllKfTollS. 4!> iialiflcalion. H to l»o. that ' by-laws of ,vholo tniuH- K'l' of shan'8 qualify him listi(':iny was sntVeiing from udvers" cir<'nmstanjection by the courts. In the Ignited States, however, it has been held tliiit a director has tlie right to renounce the ottice at will. y a statutory provision to the elfect that dii'ectoi-s shall continue in ollice until the next annual" shareholders' meeting, or until their suc- cessors are appointed. liy section 42 of the Ontaiio Companies Act it is provided that where any i)ei'son who is a director cejiscs to be a hii?ia fulc liolder of stock in the com]>any. he sluill thereupon cease to be a director. 12. ElKCTIOX OV DrRF.CTflKS. That the directors shall be elected by Ihe share- holders is in accordance with one of the fundamental principles of Joint Stock Companies, as distinguished from ordinary partnershi]»s. In the latter, evet-y uumu- ber of the partnershi]) is tlie agent of the others, and entitled to take part in the affairs of the ])artnership and to bind the others by liis acts, in so far as such acts relate to the business of the partnership. W.S.D.JI — 4 ■% jlfS TXi 50 i;i,K( rio.N <>l' DlltRCloitS, [Cl>. o. Xol so lli«' iiiciiilx'iH of a .loiiit Slock Coniimny. wlio. iiH iiU'iiilu'iH simply, iirc iiol ciililliMl (o iiitrrrcic in llic numiigciiicnl oC its iillnirs. (»r to Itiiid the others in any wjiy, linl (licy aic ncvcrliulcss not witlioiit a voi(«' in its ti-ansaclions. aiul rsiuM'ially in tlic ol«'cli(»n of those wlio ai-e (o lie afienlH of all. who ate to bind them liy theif acts, and to whom is inlrnsted the condnct of the (ompany's alVaii-s. The following; cases I'cspectinj;' (lie election of direc- tors nuiy lie fonml of interest. 1. At a meetinj;' any, and hehl a larjic amount of stocky snttlcieiit with that held by those wiio wore favourable to him to have controlled the vot<' if it had been tai^eii aocordinj;- to shares. It was the duty of the scrutineers to decide as (o what votes were valid, and (lu'y also, with the aid of lejjal advice, interpreted an instrunu'Ut undei' which the plaintiff had advanced a larj;(' sum of money to start the com])any, and which [irovided for the future disjiosition of the shares of tin? comi)any, held by the plaintilf as a security for his advances, and allowed certain jiersons to vote as beinj^- ccshiis que (nislciil of a jiortiou of such shares: — Held, that the duty of the scrutineers was so i)lainly in conflict with their interest as candidates for the directorate that ih(\ ' • dis- qualified from so acting, and the eh ^io ,. was set aside, and a new election ordered, with o be i)aid ' v the defendants (a). 2. An election of officers obtained by a trick or artifice cannot be considered a bona fide election; but {a) Diclvson v. McMurray, 28 Chy. 533. Ch. [Cli. o. Iiniiv, wlio, fere ill tlic H'l'rt in aii.v a voice in Mt of tliosc duel of till' on of ilir<'( •■ a conipiuiv. '\v, a clKiii- I'S of those (licni. Two 111 dircclois. e ai>i)oinli'«l •s were tluMi V was presi- int of stocU^ ' favoni*:il>lt' been lal^i'ii scrnlinccis they also, inslrnnicnt ^■(' sum of led for ilu* \\\, lu^ld by nd all()Wt'd { nisi en I of tity of the cir inti.'i'ost '■',. dis- s st'l aHld(\ l»aid V llio a ti'ifk tn" lection; but Ch. T).] i;i,K(TlOX OK DIUKCTOUS. I when shares have I n aciually purchased and pnid for, the fad of (iieir lieiiiy; |»urchasc«l with a view to iullii- cncc the election is no objcclinn (")• :'.. The plainlills were a company iuc(n|ioiaii'd UM(h'r Tlie Canada doiiit Slock Companies' Aci. 1(» Nin. c. ['.'. \\\ section -U. the directors were to be elected by the sharehohieis in fieueral nu-elin^i' assendded. nt such tiuies as the by-laws of the company should prescribe; and l»y section :!(>. in default «>f other expiess pi'ovisious ther<'for in the letters |»atent or by-laws, such elecii»ui should take place yearly, upon notice; at all ucu'ral nu-etinj^s each shar<'holder who had paid all calls should be entitled to vote on each share held by him; antl all (|iiesli(Uis should be determined by the luajority of voles. iJy section ^51. the failure to elect direclois at the proper time should not disscdve the company; but such eleciiou should lake jdiice at any fjeneral nu'eiin;;- of the com- pany duly called for the jnirpost', the I'etirin;-' direct nrs to c(»nlinue in ottice until the election of their successors. llysecliou .'i2, powci* was jiive'i to the directors to pass bylaws for, anuMi}isl other things, the time, etc., cd' the holdinj; of the annual meetinji- of the company, the call- inj; of nu'ctinffs, i-ej-ular and special, of the directors and of the coiupany, the quoi'um at such meelini^s; but every such by-law, unless conlirmed at a general lueelinj^' oi the conii>anv, should onlv be in force until I he next annual nieelinj;" thereof; one-fouri!! in value (d" the share- holders could at all tinu'S call a s|>ecial nu'eiiui;- for the transaction (d" su<'h business as mij^ht be speci- fied in the notice ital. In an action by the company ajiains< <]efendant for tlio non delivery of the books, et«'., to Ihe new secretary, the defendant set u]> as a defence that he was still seci'eiary, because, as he alle}»('d, the directors who aj)])ointed the new secretary were not duly elected, and that there was not a (iiiorum at the nieetinjj to transact business: — Held, >indei* the circumstances, there was authority to call the s])ecial jjeneral meeting; foi* the election of directois; and that it was duly calh'd by the pi'o]>er number of share- lu>ld«M*s: — Held, also, that the directors couhl by by-law determine th(» quorum and all other fornuil proc( ('din}.^s for the control and conduct yf the meetinjjs of the bo;nd and shareholders; that there was a ]uo[>er (piorun^ l)resent at the meetinany"s name; and an oiTicer of the company could not be permitted to withhold what belony;ed to the company. In any event the defence set up was not the proper way of testinp: the election of directors, which should have been by motion to stay or set aside the pi'oceedings {n). (fll Austin MiniiiK Oo. v. Gt'inmoll, 10 Oiitiirio Reports 0!>C>, C. P. D. CI I. .) [Oil. 5. lip and tho jiivc n|) the I nicclinji: of stalliijij the 1 in value of (>(1, who ap- tlu'ie wcFi' lul onc-tliird ss than lliat lion by the ivery of the int set up as •ausc, as he >w secret at'y of a (iiioiuni I, nndi'i' the the special is; and that I'l- of share- Id by by-law ]>i(>c( cdinj^s of the bo;»id |>ei' (luoruu', and if the the whole as opposed section 'M, called for etiiig which -Held, also, deemed to t thi n» was in the coni- ould not be le company, proper way should have eedinj^s (n). Iloports dm. 1 I -i I Oil. .').] TKIi.M <»F OKKICI-: AND POWKUS OT l»l lUK Ti >lts. oli ].'5. Tkkm or Oi'iacK of. The term for which direc-lors are elected is usually one year. Tiiis is in |M'actice by fai' the most ordinary, if indeed, it Im' not the universal period ov term of ollice in this country. Under the Kujilish Act the system is a dilVerent one. There one-third (Uily of (he directrovi- sions of the instrument incorporating the company, and i\uy act of the directors exceeding their limited author- ity Avill be void, unless it is capable of being and be sanctioned by the company. The directors then are the special agents of the company, in so far as tluM- are restricted in their agency to the particular objects oi" the comi)any, and by the provisions of the letters patent, but they are general agents also in so far as their powers extend incidentally to all nmtters not si>ecially provided for, and not foreign to the objects of the company. IG. Acts of ile faclo Directors Valid. With respect to third parties, who act hona ftde and without notice, defects or irregularities in the appoint- ment or election of a director, do not invalidate acts 1 o t h ' -.1 i r 4 [Ch. 5. ?h they may s aulhoriza- olclcis. Tlio vo isecn. ron- [i its iU't or of tlio direc- ne idea may A a director. ipany is that iscertain the consider the iriueipal and •ompany and ms one with ition ot'prin- • deal, every- nnder which Iters i>atent. ho ionii>any, 1 the ])rovi- nnpany, and iteinp,- and be then are the as tliey are r objects oi* tters i)atent, ar as their lot siH'cially ec(s of the I.ID. ])i)na fide and the ap[)oint- alidate acts Ch. 5.] ACTS OF DIHECTOHS lUN'DINf;. 55 done by liim hoiui fulc in tliat cajtacity. If it were otlier- wise. tlie affairs of a coni[»any wonlossible for a company to carry on bnsim'ss, owinji' to tlielaclv of confidence wlii
  • rinniry ]inssessors of all the ])o\vei'S ]»oss('Sscd by the company, except as otherwise ]»i()vided. What they do as the r('i)resentatives of the com]>any within the limits of their inithoiity. the comjtany itself is deenu'd to do. It fol- lows fi'om this that the shai'eholders of a conipiiny have no i-ight to conti'ol or interfere with the management of tlie bnsiness and the <-oncerns of the company by the directors. The anthority of the board of directois is dei-ived fi'oni the nnanimons iigreem«'nt of the share- holders expressed in their (Miarter and ^remorandnm of Association, and hence tlx'se jiowers which it is in- tended shall belong to'the dir«H-tors exclusively cannot he impaired by the shai-eholders. It is well setthMl therefore, that the board of directors of a conii>any can- not be controlled in the <'xercise of the disci'etionarv ]io\vers conferred ; ^*on them: the courts will not inter- fere at the snit of a shareholder to redress an alleged injni'v snifered bv the company through scune act of the directors, performed in good liiith and within the scope of their ]K)wers. All (piestions of expediency and econ- omy, within the limits of their iiowers, must be left to the free exercise of their judgment; remedy cannot, be had by a]>plication to the courts. IS. Right of a Diukctor to Skk Accoixts. Etc. The directors of a comi>any have no power. l»y any resolution of their own, to exclude one oi- moi-e of theii TO-r I'll 66 KKJUT OF blUECTOR TO SEE ACCOUNTS, ETC. [Ch. 5. iiumbor from accoHs to the company's books. Tliis lias bt'cu decided in suits apiinst directors wbo, in answers to interroj^ations as to the contents of the books, liave sworn ignorance of those contents and inability to ascer- tain them in consequence of orders given by the other directors to the officers having charge of the books, not to allow them to be seen. This answer is insufficient, for the directors interrogated must, if necessary, enforce tlieir right to examine the books, and time will be afforded them for that purpose. A board of directors cannot delegate to its officers, or to third parties, its statutory poAvers to allot stock or make calls. 10. CoxTRACTS IJrrrwEEX Directors and roMiwxY. In the case of Beatty v. North Western Transpor- tation Company ct ah, in the Ontario Court of A])peal, J. H. B., one of the defendants, a director of the defen- dant company, personally' owned a vessel, '' Tiie United ICmpire,'' valued by him at |ir)(),()00, and was possessed of the majority of the shares of the company, some of which he had assigned to others of the defendants in such numbers as q.ialified them for the position of direc- tors of the company, the duties of which they dis- charged. Upon a proposed sale and purchase by the company of the vessel " The United P^mpire," the board of direc- tors [including J. H. B.] at their board meeting adopted a resolution approving of the i)urchase hy the company of such vessel; and subsequently at a general meeting of th ^ shareholders, including J. II. B. and those to whom he had transferred portions of the stock, a like resolu- tion was passed, tlie plaintiff" alone dissenting: — Held, that although the purchase or the resolution of the directors alone might have been avoided, the resolution of the shareholders validated the transaction, and that there is not any principle of equity to prevent J. H. B. in such a case from exercising his rights as a J Ch. ;tc. [Ch. 5. Tliis has in answoi's ooks, have y to ascer- the other books, not nsnfticicnt, i*y. «'nfoi'ce le Avill be f diiet'tofs [►arties, its ,OMPAXY. I Transixd'- of Appeal, the dofen- rhe United s i»ossessed y, some of endants in )n of direc- 1 the}' dis- e eompany d of direc- nart of directors to ]>ledjie their own credit for the benelit of the cctmitany {b). Where certain shaj-es were allotted to one of the directors of a comjtany at pjir. in consideration of which he ottered to supply funds to meet a pressing demand np(»n the company, and he voted on these shares at a general meeting of tlie shareholders, and no oi>i»osition was at the time made to his so doing: — Held, ihiit the shareholdeis must be c(»nsiro|ierty of the comj)any, acting in good faith, jturchased the same at a sale by mortgagees, under a power of sale foi* ^S.4(!(). and sold it in the following year for .1f2:!.()ll(>: — Held, in winding-uj) proceedings, that he could not ]»ur- iilit'r V. Nixon, 4 Oiitariu Itcports, <')"•_>. I (I lb. ('/I Ih. U) lb. ■npwi llM^ ii « 58 VARIOUS LIAHU.ITiES OF IJIKECTOIJS. [Ch. 5. pju' ovor or account for such profits, and in fact by liis ai)])oarius: as a bidder at tlio sale and so danii»ing (he bidding, he was guilty of a breach of trust within K. S. C. c. 129, s. Sa (a). 20. A\\R[ois LrAiuLiTiEs OF Directors. The several Acts relating to Companies contain clauses making the directors (»f companies liable to var- ious penalties foi* declaring diviih'uds improperly; for making loans to shareholdeis; for wages; for transfer of shares to insutlicient persons and some of them for failure to make returns to the Government. All in addi- tion to the liabilities of directors for false statements in prosi)ectuses, advertisements, etc., and for misfeasance in office. Under the Ontario Companies Act, s. 85; the On- tario Mining Com])anies Incorporation Act, s. S; the Quebec Joint Stock Companies Act, Article 4720; (he Quebec Mining Companies Act, s. 1), and the Manitoba Joint Stock Coni}»anies Act, s. 32, directors are jointly and severally liable to the labourers, servants and apprentices of the company for all debts not exceeding one year's wages due for services performed for the company- while they are such directors respectively. Fnder the Dominion Act, K. S. C. 1S8G, c. 110; the Revised Statutes of Xova Scotia, c 79, sec. tI9; the INorth-West Territories Ordinance, c. ;{0; s. G7, directors are jointly and severally liable to the clerks- labourers, servants and apprentices of the company, for all dcb(s not exceeding six month's wages due them. The Statutes of liritish Columbia. New I'runswick and Prince Edward Island do not contain similar clauses. 21. General Remarks Concerning Directors. Can a man holding a plurality of responsible offices conscientiously discharge the proper duties devolving ((/) 7i<' Iron Cliiy Hriclc ^(iiinifiictui'iiij; Cd.. Tdrnc-r ("use, 10 O. 11. 113. ■% i s. [Ch. 5. 1 fact by liis Llaini»ing llic liMist witliiii :oRS. iiics contain iablo to var- ji'operly; for for transfer of tlioni for All in adili- italenients in misfeasance 80; the On- :;t, s. 8; llio ;le 47:i0; the he Manitoba s are jointly iervanls and ot exceeding nod for the ctively. , c. lit); the sec. ortant matter. anies Ihe lace tlu' company under the shadow of great names. ^leii of influence, standing and l'(»rtune are secured, often irrespective of age and ability. In England the ac(iuisition of one or two titles is usually a desideratum in floating a new concern. The Karl of This and the Marquis of That permit the use ot their names, and become the chief guinea-]>igs in the cage of directors. Of course very few of this class of directors ever pretend to look into the business — they are content to meet once a week or so. chat over a small luncheon. ]>ocket a trilling fee. and overlook the books ("Ulirely. They are the inuch-abused ligure-heads. There is the same class <)f useless directors in certain Canadian coin- ]ianies. handling and managing large tinancial alTairs. A man may be successful and clever in a business to which he has been apjdying himself for years; but it does not follow that he will be e(|iially useful oi' fortu- nate in helping to conduct another of which he knows nothing. There is another danger in men holding otTices in several comjianies formed for tinancial business. It is ]>ossible by collusion for directors io accommodate one another or the institutions th(»y dii-ect. and a loophole 'HfT 60 GENERAL UEMAHKS CONCERNING DIRECTORS. [Cll. 5. for frtiud is left open, which should not bo forgotten in these days of coniniercial jujfs't^iT- ShaieholdeiH should, thcn'fore, discountenance such an anomaly if they wish their savinj;s to descend (o their otTsprinp;, as the ^rced for lu'oniinence, more pai- ticuarly when pay is attached to it, heclouds too fre quently the sense of honor which ouj^ht to influence the conduct of men holding trust positions, and as to whom the illustrious liurke once declared that ^^Tlwsc irho exe- cute puhlic yocunim'ii frusts ought of all iiicii to he Ih" m's! sirictlij held to their duty." ■■^ .' ; CHAPTER VI. OFFICERS, THEIR DUTIES AND POWERS. 1. Pm;siDi;NT. 2. PoWKUS OF PlUvSIDKXT. :i. Rkmunliiaiion' of. 4. Vick-Pkksidknt — His POWEKS. "). Skckktakv. (). Remunkkatiox of. 7. SuhkkndfkoftheCou- I'OKATE ReCOUDS. 8. TliFASUKEIJ. !). Oexeiial Mana(;ri{., 10. Removal of Officers AND Agents. 11. Resignation of Offi- cers. 12. Officer Repaying Ad- VAN(.'ES MADE liV JIIM- SELF. 18. Company hound by acts OF Officers. 14. Li Alii MTV OF Officers FOR FrACDULENT RE- PRESENTATIONS. 15. Statutory Li AiJiLiTV of Officers. 1. lMy exercisiufj; the ]»ovvers which usafie and custom and the necessities and conven- iences of business require in the executive officer of the fonipany. He has no more control over the corporate proi)erty and funds than any other director (a). The president of a company is, as the nanu* implies, the })residinj? officer of its board of directois and of its shareholders when assembled in general meeting, lie is elected bv the boaid of directors. Where he is vested with the general care, over- sight and management of the company's concerns, and (a) Stokes V. New Jersey Pottery Co.. 4C N. J. L. 240. I ' 'rWW ! !, 62 I*(>Wi:US OF I'llESlDENT, [Ch. 6. I I in I SI I'' M h' is paid a salary for his services, he is bound to rcndeiv in retain for the eontidence tlins reposed in liini, and the compensation thus ])aid to him. }iood business dili- gence in tlie discliarge of tlie duties llius assumed. He is answerable to the company for the want of the rea- sonable or ordinary care bestowed by a jjfood businesn man in the oversight of a similar busiues.^ under similar circumstances. 2. Powers or Prksidext. In a recent case it was stated that '' the [(resident of a company, by virtue of his ofhce merely, has very little authority to act for the company; his powers depend upon the nature of the company's businiss and the authority given him by the board of directors. The board of directors may invest him with authority to act as the chief executive officer of the company; this nui}' be done by resolution, or by acquiescence in the course of dealing and manner of transacting the busi- ness of the company. When a contra<'t is made in tlie name of a company by the president, in the usual cours'.' of business, which the directors have the i)ower to authorize him to make, or to ratify after it is made, the presumption is that the contract is binding on the company, until it is shown that the same was not author- ized or ratified. One dealing with the jncsident of a company, in the usual course of business, and within the powers which the i)resident has been accustomed to exercise without objection from the directors, has the right to assume that the president has been invested with those powers." When the president also acts as the general mana- ger of the company, judicial decisions have ascribed to him jiower to do any act in the ordinary transaction of its business in behalf of the company so as to bind it. 3. Remuneration of President. The salary of the president may be fixed by a by-law of the board of directors, which must be approved by he prt'sident ly, has vtry lliH l»0\V('l'H IdiHim ss and i-ectoi s. The authority to >iui)any; this (coiu'c in the ing thi' l)Ujroper minutes of proceedings thereat; he issues, under the direction of tlu' board, all necessarv notices to mend)ers and others, and comlucts all corrts- ])ondence with shareholders in regard to calls, transfers, ioifeiture and otherwise. The functions of a secretary are clerical and min- isterial only; that is to say, he is the agent through whom the clerical work of the company is done, and who carries out the orders given to liim by the directors without exercising an independent discretion. In prac- tice it fre(]uently happ(Mis that a great deal is left to tie* discretion of the secretary; but, however that may be, the directors are the i)ersons on whom the real respon- sibility rests, and the acts of a secretary done within the scope of his authority are the acts of the company or the directors. It has been held that the secretary of an incorpor- ated company is an officer of the company, and is not merely an oiTicer of the matmgers or directors by whom he is appointed. It has also been held that he is not a w ^i ■r] II |ii"i^ w * (J4 lU'.MrNllltATKtN OF .SLCUKTAIIV. [Cll. 0. •■ Hci'vunl " nor nn '' miplovri'." witliiii llic mrijiiiiij; of n sliiluh' cn'miiij; :i pn'IciriHc in Ijivoiir ol llir wii^-fH of HcivantH nnd cniidovi'cs. Til*' scnclary \h llw itropcr custodian of Ilic cor- poial«' seal. an«l I lie kcj-pt'i' of liic ircoidn of llio <-oni- pany. Il<' is Ihort-foic (lie piopcr poixm to prove its books as a uilnoss. llo is also tlio aj^rnt tliron^li whom the <(»nipany ordinarily <'onininni('at<'S to I lie pnidic, knowlrdj^t' of its ads, and lionr*' liis ollicial slalcmciUs of such ads when accepted and acted n[»on liy third ])arti<'s in ;^<>oany was made by the secretary or treasurer of the comi;any. with the knowh'djic ami con- sent of tho dir(M'tors, is evidence from which a jury nmy infer such oni<-er's authority to indorse. The duty of rejjistering transfers of shares devolves on the secretary and he is bound to see that such trans- fers are i»ro])erly made. Apjdications for inspection of the corporate books and recori' tin* cor- if llu' mm- ) jnovc its i(» «oni|»nny lidnc of W^ \ nets when l^ond liUlh o l>in«l till' iiiiy lu'coiuc uiiiy in tli<' iiuloisc its iiMucnt of it Hocrctaiy or l^e jnul ton- ji jury may res (l»'Volv«»s such Irans- iispiM'tion of ladc to liini. it'lf l«'};ally nade by the an exprosH lotwocn the of the other necessary in reasonahlc Id have been nffirer of the his eompen- over other Cll. (i.l srilllKN'DlOU <»r ((Mtl'OKATK Ki:< 'o|tl»S. 7. Sruur.N"i)i:u oi- thi: d iui'((U ati: Hi'.couds. 05 Tlic s»'(i«'lary of a conipaiiy is abHoliilcly lioiiiid lo Miirren«h'i' tlic hoolis, papers, ami oilier oHlcial itcords of the company, njion liie cxjiiralion of liis term of otllci', ;ind it is not a vali«l reason for iiis retention of iliem that liis accounts have nol heen adjusted. .s. TKi:AsrKi;u. Tlie treasurer is the custodian of (lie funds of (he company, charged witii tiie duly of pieservinj;, disp(isin;j and accountin;; for them in accoi-chince wiih llu' onh-is itf his (tniciai superioi-s. To secure Hie failiiful peiMorin- ance of these duties, lie is };,<'nerally i'e(|uir<'d to execute a bond. It is his «luty to kee[» the nioiH'Vs of the com- pany distinct from his own, and to dejMisit them to the (ouipany's credit, and not in his own individual name, lie should be able and ready at all limes to ]»ay o\ei any balance he owes lo the company, and to i»ay it ui»oij (jeiiiand. lie is not liable in dania;><'s foi- loss ha|)pen- iniT throujfh his nu're errors of judjiiuent. Tnless author- ity is conferred upon him by the charter or by-laws, lie has no power to assume the paynu'nt of ilebis witlntut conferring Avith the directors. lie has no ri};lit to pny himself a claim he holds against the company unless the payment has been, authorized by the comi»any. Where the acts of the treasurer of a comi)any are perfoiincai'ticular contvaet undei* which he is e.uj ved, and subjeit; to the |)leasuie of the diiertois, unless a staled term is lixed in his contract. \\ here a com|iany, by resolution of the boiird of direct (U's authorized their nmna^tr to ]>urchase fiom the plaintilV, on ceitain terms of ci-edit, a machiiu' necessary for the carryinj;' on of tlu; com|»any's business and the coni]»any's numajier boujiht the nuichine, but on dill'er- ent terms, the plaintilV havinji' no knowledj>e of the Ixtard's i-esolution, and the defendant company received and used the nuichine. Held, that the jMirchase >vaH within the scope of the numajicr's authority, and that Ihe defendants weie liable lor the price of the machine [((). 10. Ki:.M()\Ai, OF Ofi'ickks axd Agkxts. A comi»any should remove an officer or ajitMit, where thei-e is a contract for a fixed term, only where he vio- lates his contract, or is incomjietent. It can. however, at any time revoke the authority of an ajient, renderiu};' itself liable for breach of contract. (Jenerally the directors may remove their own ai)pointees at will. 11. liKSKiXATIOX OI- OfFFCHRS. A resignation may take ]>lace by an expvess agree- ment between th<' company and tlie ollicer or by his acceptance of anothei' ollice in the company incom- ]>atible. with the one he holds. The lesij^nation is not eomplet*' until it is accepted bv the comiianv bv an entr^- in its bo<»ks, or by treat in j;- the office as vacant. \.- Out. Aiip. ]{. 340. i [Cl>. »!. cl'i Ulll ( ss 11' l\(' is an Is lii>4 ottici- 111' IfVIllS (if |. veil, iiud a si Lite '.I U' \Hti\n\ of ise fioiu the K' nct'i'ssjivy CSS and tlie at on (liffev- '(lj;e of ll»e liny received iirchase Nvas ly, and Hull •iee of the XTS. iiV('SS afjrce- •r or by his h:any inccnn- liation is not ntry »v an ( ant. CdMI'ANV HOUND WY A( TS Ol" OFl'K'KliS. IL'. (Miici'iR Ki;i'A\i\(; AdwwcI'.s Madi-: \',\ II i.\isi:i.i-. I) is not iiniawfui for an «>(ti('(M" of a coinpany lo withdraw from its finnN. wlicn tin- state <»f sncii fuiids will permit of it. enoii';h money to repay himself f(»r ud- Nances made to the eompany. i;l. CoMi'ANN' r»()iNi) i',v .Vers Ol" ()i-ii('i:it only that ilie act nf the ajicnt was unanthoi-ized. bnt also thai the j'arty (iealin<;' with the ajicnt had notice theieaf. or that he (lid m»t rely iijxtn the ajtparent j)oweis conferred np )n (he a^'ent by the company, 14. LiAr.ii.nv of Oi'i- ( i:ks i'or TA'IIOXS, KArDn.i-.xi' Hi ;eskx The dinK'tors or otticers of a com]iany who malve false statements of material facts, misrepresentations as to solvency and the like, the natural tendency (tf which is to deceive the ]>ublic, are liable for the ilamaj^es sustained by oiu' who relies on suci. statement-* and in misled and suiters damajics in consei|uence. la. SrA'rri'oKV LrAiiirarv oi- Oi-imciks. Directors or ofticers of comj)anies have by statute in many of the Provinces been made liable to ]KMialties, or for the debts of the coinpany. where they fail to mak(^ a I'eport of the condition of the company; wheic they make false reports of such c(»ndition; where ilicy pay ii di\i(leud out of cajutal: whei'e they make loans to shi'.reholders; ami undei' some Acts {a) tor the waues. not exceeding one year, due for services iierf(M'me(l for the company by labourers, servants and ap| feiitices. ((() Sec list of llicsc Acts uiiilcr hcMilinj: " N'iii'inus I.iiiliilitifs of Hircitdrs," ("hiintci- ."i. CHAPTER VII. MEETINGS. Cli 1. IXTIU)l)rCT()llY. 2. ScoiM': oi' Tui: Slbji:( r — N(jricfc:. {«) What Notick to contain. (6) How Notick lo iik civkn. (<•) Notick in cask ov hkckaskh siiaiikiioi.dkk. 3. FiiJST Mkkiinc. 4. OUDINAUV ANI> KXI'KA- iiKDiNAiiV Mi;i;riN(is. 5. WllKKK M!;i;ilN(!S .MAY BK IIK 1,1). (J. (^)roia;M. 7. \'(>IIN(i. '^. Who .mav noih y. The Ma.ioui I V of Voti:s CAST SHAM. i;li:ci'. 10. I'hea.mmles and Re.so- El'TlON'S. 11. PU0CEI)i:i{E AT FlIiST Shakeholdek's Meei'- 12. First DiHECToits Meei- iN(;. 13. I'liOCElK'RK .\T Ol NEH M, MEETIX(i. ((/) ClIAIU.MAN, KH9 AND HOW iMti;rAUi:i>. (A) OlM.N VOTlN(i. (/I JJai.i.ot. (»() Al'l'OINT.MENT OK ArMTOItS. ()(| J'jI.KCTION Of DlltKCTOIlS. (ii) OONDVCTOK ClIAir.MAN. {})) JMlNTTES. ('/) VOTKS OF T'llANKS. 14. Ai),iori!.\Ei) .Meeitn(;s. 15. Shakeholoers cas a< t O.NEV at OHil'O'UATE MEK'I'IN(;s. 1(). I)ii!i:("i'or's Meeti:n(;. 17. I'ltOCEEDlNCiS or DlUEC- TORfS. 1. Introductory. The sliai(4i(»l«l(M's of a conipaiiy constitute tin' origin, e.xistence and continnance of tlie (•omi>anY itself. They elect its directors, control throw^h tli election of directors its {general jxiHcy. and within the charter limits may ])rolong or dissolve its existence at their ]»leasnre. These vital jjowers oi the shareholders can be exercised by them only in corporate mcclinos. duly convened and ]iro]>erly orjianized for the transaction of business. Accordinjjly, the method of callinjr tojiother a corporate^ meeting, the tim<' and place of that nie('titi!'>*• 1UK( TOllS. UUMAN. KS. iKiniNtis. US CAN A<-1' CHMU'OllAlE Mkktinc. OF Dii;K<'- elf. Ill eUH'tion the charter ic' at 1tif no- t(»^e!h"r hat nu'fiiiig, the notice ti he p,iven to the shai-ehohlers and the var- h)MS incidents rehitive to a ])roi»er coiiveiiin- (tf ii. no one can object that no notice was •••iven. Such assent should appear in writing- on tlu' lecord, signed l.y all.^ (a) What the notice to contoin. Notice sliould specify or eslabli.slied custom known to all tlie sliarelioldeis which fixes lime and place, il may not lie necessary, but it is still advis- able to sjK'cify these. (//| Jfuir milicr In he (jivcii. In 1 he lirst J>lace direc- tions jirescribed by the statute ereatiiij; the cDiiiiiany. and by its (liarter and bv-hnvs iiiust be followed. If they are silent, there should be a printed or written notice sij^ned liy some jierson authorized to call a iiie;'!- inj^, delivered to eacli person entitled thereto. The statutes usually set forth liow the first meet- ing shall be called. It has been held that verbal notice, where full in- formation of the proi»(>s(Ml meeting is given, is sullicieiit. but this is dangerous. The fact that a sliareliolder is away from lioiue will not excuse- failure to give notice. In such a case the notice sliould be sent to the sharehoMei 's rcsiilenc' \\\ mail, or left with some one of the shareholder's family, 01' at his house, or last ]>lace of abode, if the family l»e absent. It is no objection t(> the legality of a meeting that some (tf the sh'arehohU'rs were incapable of receiv- ing notice by reason of ]thysical or mental infirmity. As to length of notice, the statute, charter or by- laws should determine. If they are silent, notice must be given a reasonable time before the meeting, and if ])arties reside at a distance, sufficient time must le allowed that they ma^- attend if they desire to do so. If the notice is sent by registered mail, it will bi' pre- sumed to have reached the person fen- whom it was in- tendi'd. (rl Xolirc in casi' of ilcmisi'il slinfflnildcr. Where the governing statute or charter is silent as to the mode of giviii!'' iiotice of a call, when the shareholder is de- ceased, and the fa< t of his death is not known to the company, a notice sent by mail to lini at his registered address will be sulficient lo bind his excM-utors. .1 I <'h 7.1 .d^ m \c\ 1. / slionld be 'stablislied fixi's lime still julvis- ilrc (lii (*(•- o()in]»;inv. lowed. II oi' wi'iltcii ill ii IlU'i'l- ril 7.] <»1{|)IN.\I{V AND I;.\TI!.\()1!1)IN.M;V M KKTINfiS. 71 111 the Kn^lish cisc ol' Allen v. (lold IJeefs of West Atiieii J.iinited. 1S!)!I. l> ('liiiiicei-y 40, il wns held ilial ;il»;irt Iroiii speriiil |»i-<)\ isioiis in llieii- jirticies of jisso- < iiilioii. il coiiijwiiiy liiiviiiu- luttice ol' llie dcMlli of j) ineiii- liei' caiiuol bind his ('state by i»osliii;i' 1(» him ai his r<'^is icicd address: — ill A nut ire ]ifeliiiiiiiary to foifeil in so. ill be pre- it was in- W iei'(^ the mode der is do- wn to the registered :\. First Mkktivc. The Ontario ('onii)anies' Act diiecis that ■' the pro- A'isional directors of e\-ery comjiany shall, by a re;^is- tei<'d letter addit'ssed to each shareholder, call a general iiieetin<;' of the company to be held within two lonths <(f the date of the lettei-s jialent. foi- the purpose of <)!'^ani/,in;i;' the compa.ny for Ihe comiiiencement of busi- ness. This tii'St jicneral meeting' shall be held at such convenient ]>lace as the directors may s. 5. Wni'-.Ki'. M i'.I';tini;s M » H « . I>v Ihe <-omnion la w o )t ]:U'/*iH»\ Il il|*|MfM» t o nave been laUeii for jiraiited that the /eiieial (»M«*Hi'Mjis of a 72 WHKIU-: MKKTrN(iS MAY I5E HKfJ). [Cli. compniiy would alwjiys be lield within the jurisdii tion from which its charter einanatod, as no absolute rule appears to have been laid down with re<;ard to it. It maybe that in that country no case has arisen in which a company has ]ti*('tended to h<»ld a rejiular meetinj;- of all its members beyond the limits of such jurisdiction. Kven the C'ompani<^s' Acts are silent on the subject, saying merely that "subsequent general meetings [i.e., meetings subse(juent to the first at whi(;h such arrange- ments could be mad<'] shall bo held at such time and ])lace as may be ]»rescribed l»y the company.'' Tu this country, however, it is not hard to conceive of Joint Stock t'ompanies. the greater part of whose stock is held in th<' T'nited States, for instance, by reason whereof, it might be considered at some lime desirable to hold general meetings in that jurisdiction in which the majority of the shareholders were found. In the United States particularly it can be readily imagined that companies exist everywhere, the bulk of whose stock is held in another State, or other Stat' s, from that in which the company had its birth. Ifence, we are not at all surprised tq find that the question has been r.iised as to the legality of a general meeting held outside the jurisdiction in w'hich the com- pany was created, and to discover that it has been laid down, " That all votes and proceedings of persons jn'o- f(^ssing to act in the capacity of corporations, when assembled beyond the bounds of the State gi-anting the charter of the cori>oration. are wholly void '' (a). And the Code of Califoi-nia goes much further than this, and provides that, "■ The meetings of stockholders and board of directors of a corporation must be held at its office or princijtal place of business." Rut though this is the ipore regular and desirable mode, it is not ]>retended that by the general law of coriiorations, general meet- ings of the members must be held at its chief office or l)lace of business unless so provided by its by-laws or chaner. And hence we find it stated bv an authoiitv (01 AiifTcll A: Amos Corpora t idiis. sec. 4!»S. [Ch. Ch. 7.1 QCOllUM AT mi:i:tin(!s. 73 iiris(li( tion ^oliiti' rule 1 to it. It ■n in whicli mootinji' of ii'isdiction. lie subject, 'tinjis [i.e., ;h arianjio- I time and ." Tu this e of Joint ock is held n whereof. )le to hold which the be readily ;he bulk of her Stat' s. 1. id that the f a ranufacturin<; Com- l>any(?>), ''Where the by-laws of a cor|)oration required llie meetinfTS of the corporation to be held at tlu* count- ing-room of the corporation, and it api)eared from the iccords that a meetinji" was held at tlie dwelliii«i- house of the fjeneral ajrent and clerk, withoiit staliii}; that it was at the countiufj-room of the corporation, it was licld. that the Court would ])resume the countinji-room was. for the time beinji'. at that ]>lace." The Tanadian A els usually contain sections i»re sci'ibiiif; that the general meetinji- of shareholders shall lie held within the limits of the jurisdiction from which the charter emanated, leavinjj it to the rep;ulatioiis or liy-laws of the company itself to prescribe the exact place at which they shall be held (r). 0. QfORinr. The ranadian Acts empower the directors to make by-laws, subject to confirmation by the sharehohh'i's, fxiiifr the quorum. Tlie (Mitai'io Act. sec. HO. provides iliat at a special meetinp: called ii])on a requisition of the shareholders, the quorum shall be ascertained as follows: "If the shareholders at the time of the meetinjx do not exceed ten in number, the quorum shall be three; if i. s. .'V2: Ontario Cnin- I'.itiios Act, s. 40; Rcvisfd Statutes Quchfc, s. 4717-14. V(»ll\(i AT MKK'I IN(iS. [C'll. 7. <'li. 7. IIm'V ('X(('«m1 Icii llici'c sliiill li«' iMhlfd lo llic iihovc <)iii>rnin one for every four inidit ioiiiil iiieinlters ii|) lo (iflv. iiixl one foi- e\('r,v ten iiddii iouiil ineinltei-s nfler fifty, with this liniiliitioii. Unit no (|iioi-iMn sinill in any <;ise exreed Iwenly.'' Anolliei' nsefnl iMiIe. provided ]\\ llie followlnjH' sertion. is "If witliin one lionr from the lime ji]»|»ointed for sncli sjieciiii {general meetinji'. ciilled n))on. or pni'suant lo. i-ei|nisition iifores:iif enerally. excejtl with resjiecf lo liie v»»lin^\ for which there are special lules in all .Joint Slock Comjianies' Acts. Thai rule usually is that each sliai-e repi-esented shall carry a vol<'. This is a very simjtle rule. I»ul one involvinji a little trouble in deter- mininji' beforehand to how nmny votes each member present is entitled. The voles of the "two-thirds in value of the share- judders" Avho may vote for a by-law authorizinj^' liie boi'iowinji' of money, etc., on the ]»i'operly of the com- ]>any are, Avhere there Inis been no default after a call, to be com]Mited upon the face value of the number of shares held, and not upon the amount ]iaid upon such j^hares {a). The freedom of every shai'eholder to vote as he thinks best for Ills own inlei'esis is unrestricted, and in the absence of anything'' to the contrary in the charter, or by-laws, of the coin]>any. he may vote u]Km a (piestion in which lie is jiersonally interested. So that where the question was whether or not the com]»any should adopt a bill which had be(Mi tiled to im])each the title of some of the shai'elndders. it was held that the shareholders in question were entitled to vote. ill) runloiii V. Ontario I.Kiui suul Di'tu'iituro Co.. 22 <^n1iiiii) Ivcports, ."1)7. I [CI I. i . I'll. 7. jlic illlOVC Imts up In niters nflrr liiill ill any »i'oviy r Ironi llic illl«Ml tin «>•. ( (pMM'nni IS I he ni('('(in;i •('('(lintts of I rcspccl 1<> in all -loinl s lliat carli ■< is a very Ic in (Iclcr- <'li iiit'iiibcr llic sliaro- <»ri/,iiij;' llic )t' llic coni- il'lcr a call. niinihci* <>r npon such vote as he led. and in lie charier, I a queslioli 1 where llie loiild adopt tie of some 'eliolders m ■J Out mil) ^^i WHO .MA^ \(»ii: At .Mi;Kii\(is. s. wih. y\s\ Vi.TK. 75 A liiiiMlic or idioi may accoi-din^ lo llic I'ln^lish iwls rcfciicd to, vole by liis guardian ny irnstcc. And y.i\ witli niiiiors. Iiiit as hciw'cn llic sliaiclioldcr and ihc conipaiiy, the person enlillcd to the riiilit ot volini;; is llic person lc;;ally entitled to ilic shares, the person whose naiiic is on the i-cjiistcr. The coiiiiiaiiy have no riulit l(» inqniiM' into the hcnelicial ownership. And if siocU he held Joinlly l»y two or iiiorc persons, any on*' of tliciii present at a incctin^' may. in the absence of ihc other, or others, Aole thereon; Init if more ilmn one joint slockhohh-r be Jti-esciil or be i'e|»rcscnlcd by itr(»xy, ihcy musl vote together on the slock jointly held, itiit /// re AN'cd^'cwood Coal and Iron <"o. (//i. it was lirhl ilml holders of dcbenliires which pass from hand to hand by (Iiliscry, miisl pi-odncc them at or bcfoi'c ;i nicctin;;' liillcd lo vote upon a i-cconslriicl ion scliciiie, in order lo I'ci'niillcd lo v( Ic al such nieelin;;-. Ac'ain. a person is by all the Companies' Acts. cnlitU'd lo vote on shares held by him in trnst. and .•^niililr. even Avhere he is trustee I'or the c' the alTairs of an institution in which their means or fortunes are involved. !>. TiiK M.\.i()UiT\' oi- \'(iri:s Casi- Sham. Ki.i-.ct. It is the well-settled rule in conii»anies havinj^ a cajiital stock divided into shares thai a majority of the I'/ 1 li Cli. 1). tiL'T. IM Scctidii yj, (Jutariu CoiniJiiiiics Act. <•. 1!»1. K. S. < >. li H]Tnp 76 I'KKAMHLIOS AM) KKSOU' TIONS. [Ch. 7. Ch. 7.1 votes cast sit any olcction slinll clccl. And (his nuijoriiy. inoroovor, need not he nn actual inmiorical inajorily of all tlic voles wiiicli all (lie sharclioldci's have. Iiut only the majority of the votes cast. The question who is enlitled (o vole upon a i)arti cular share of slock, is, as a ;ien[J)i:itS MKETINfJ. T to and ox- rmal rosoln- cprosslon, or ody foi' ap- f the share Aays liost to inj;- '' whys,'' the remedy sohition, and, itioii by the or rejt»('ted, minutes. A ions should lie secretary ame. and in 3 show who adopt. )sition by a leginning as ercforc, he it elusion, say the matter siilmiilled then not be llnally disposed of. a lliiid i-esolu- ii<>!<. may lie appended by saying. "And injnin hr il fur- llirr ri'snlri'il," and so li!ce is organized in manner as follows: Sonic' leading shareholder will say: — 1. " The iiii'clinlly seconded, s;iy:( Is the motion seconded? L*. "(Now state.) It is moved and seconded that ^Ir. Thomas act as chairnum; are you ready for the iiuestion? (Waiting an instant.) All in favor of the motion will s.iy 'Aye." (After the ayes I'cspoml.) Those o|>i)osed, • No.' ;{. " Tlu' 'ayes' have it! Mr. Thomas is <'lected. an«l will ]»lease take the chair and state the object of the meeting. 4. "(Or,) The * nos ' have it; the motion is lost, and n(»minations for chaii'inan are in order." ^Vhen the above (L* and 3) are repeated. 5. Should it appear before the oiganizaiion that factions are present, then, instead of (1) use: ''Nomi- nations are in order for chairman; whom will you have'.'" (>. The secretary is elected in the sann? manner and takes his place and makes minutes of the ])i*oceedings in ihe rough, which he will Avrite into the minute book, in ink. at some futui-e time. 7. After the Chairman and the Secretary have taken their places and assumed their duties, the chairman will say: "The list of subscribers to the capital stock of this company is in the Secretary's hands. The Secretary will read the same." The Secretary accordingly reads, stat- ing the number of shares of stock subscribed for and each shareholder present in person, or by proxy, will answer to his or her name as called by saying " present," ^H \^ I IMAGE EVALUATION TEST TARGET (MT-S) 1.0 I.I 1.25 m 11^ ;^' IIIIM °' m m M 2.2 2.0 1.8 \A ill 1.6 Photographic Sciences Corporation 23 WEST MAIN STREET WEBSTER, NY. 14580 (716) 873-4503 X> T 1 78 I'HOCIiDUUE AT SHAKDHOLDLHS' MI':ETINr<)xy, passinresent in person, or by [m'oxv. 9. The Chairman will then declare the nnniber of shareholders present and, if a (juoriini. ^(l) that the meet- ing is competent to proceed. That the Letters I'atent are in the hands of the Secretary and may be inspected by the shareholders. After waiting a moment, he will say: "The Secretary will read the Letters I'alent of Incorpoiation."' 10. A motion to elect by ballot the number af direc- tors re(|nired, is now in (»rder. The chairman will [»ut the motion, and if favonrable will say: " ' Carried." <)r. if nnfavourable, will say, ' Lost;* what is your jdeasure'.'"' If this motion is "carried"' the Chairman will then use his i)rerogative of ai>pointing one or more si-rutineers to receive and count the ballots (//) cast for directors; or, if the meeting is snuill and unanimous, the Chairman will say: "The Secretary will act as scrutineer and will receive and count the votes cast." IL Nomimitions of directors are now in (U-der. After the same are nomiiiated the ele l'EH( W.DKK.V Mi;i;TIN«i. '!> ]H'<'Sont i1." wlicn any nuittcrs ('on««'i'iiiii}i: llu- object or |nir|ios<' of tlu* coinininy Ml- was elected President; Mr \'i(('-rresident: Mr Secretary, and Mr. Treasui'er of the company tor the ensuing' y<'ar. 17. The Secretary jtresented a IJy-law made by the directors. |M'ovi«lin<; f«)r the payment of the otTi<-ers and directors of the company, for the approval of the share- liolders. This was on motion, unanimously a|»iMoved ol. 15. Ife also ])resented a code of by-laws f«u' the rejrulation and governnuMit of the company, which, hav- ing been read, exidained and discussed were unanim- ously approved of. 10. The Chairman and the Seci-etary should sign the minutes of this meeting, which should stat«'. among olhei' things, time, idace, shareholders ]U'esent. person- ally or by proxy, and distint-tly every thing done or oidered to be done. 20. The meeting then adj(>uriH'd. a H I If '41, bO FIRST DIUECTOUS MliETING. 12. First Directors' Meeting. [CIk 7. First Directors' Meeting to elect the officers of the Company, transact sudi other business as may be neces- sary and adopt a code of by-laws for the government of the company's business. 1. Immediately following the tirst meeting of share- holders for the election of directors, the directors elected at said shareholders' meeting were called to order — asu described in number 1 to (5 inclusive under heading " First Shareholders' Meeting " — and a formal organiza- tion effected. 2. The chairman instructed the secretary to read the list of directors, those present answering to their names as read. 3. There being a quorum i)resent the minules of Ihe last meeting of the Provisional Directors were read and approved of. 4. The chairman then declared that a motion to organize the board, by electing the permanent officers " viva voce," was in order. Such motion being made and put, the chairman declared it " carried," 5. Nominations for president were in order. A mo- tion to elect as president Mr. A. — he having been nomi- nated — upon being i)Ut to vote, the chairman declared Mr. A. to have received a majority of the votet^ of the directors, and he was therefore elected to the office of president of the companj^ for the ensuing year, and until his successor was elected and installed. Each of the other officers may be formally elected in the same way, or may be named by the directors (a). G. The salary of the President being on motion con- sidered, each director, (except the president) voting vira voce, the chairman declared it fixed at a stated amount per annum. The salary of each other officer may be fixed in the same manner, (the officer not voting on his own salary) as well as the payments, if any, to directors. (a) See section 43, Ontario Companies Act. I "I -J 1 '1 ffl II. i Ch. 7.1 FIRST MKIiTlNC OF DIUECTOHS. 81 IJie secretary was iiisti-iKted to i)roi)aro a by-law flxiii;; (lie salaries at the amounts agreed upon, for submission 10 the shareholders. 7. The Resolution adopting the Seal coming up is ( onsidered, and on motion is formally adopted and an impression of the seal made upon the minute record (in a space left blank) where this resolution is recorded. If 1 lie seal be not prepared beforehand, the impressiim should be made on its receipt., 8. The Resolution adopting the Certificate of Stock coining up is considered, and on motion is formally ;uloi)ted, and a certificate cancelled showing the date of such cancellation, with the signature of the president, both written in red ink across the face thereof, is de- clared the form and design of the certificate of stock to be issued to the shareholders of the company. The can- relied certificate should bo attached to the minute book at the page where this resolution is recorded. Each different form or design of stock certificate should be treated in the same way. 9. A Committee on By-laws should now be appointed by the Chair, to consider and approve of the code of by- laws already prepared for the government of the affairs of the company, and report on the same to the board of directors at the earliest moment, (A set of by-laws will be found post, which may be adapted to the needs of the company.) 10. Among other business to be considered by the board of directors, is the location of the ]>rincipiil office, location of branch offices, time and place of regular meetings, treasurer's and other officers' bonds, appoin- tees, etc. 11. A Resolution providing for the making of calls upon the shares of stock, and fixing a time for the pay- ment of the same to the Treasurer of the Company, should on motion be adopted. W.8.D.M. — 6 \\ mw" i S2 rilOCKDUUE AT OENERAL MEKTIXGS. [Ch. 7. 12. The issue of luHttiliuent Scrip .and Stock Certi- ficates in excliange for j>ayment of calls, or property purchased, should now he ordered hy formal resolution in accordance with the Memorandum of Agreement and Stock Book and Resolution of the Shareholders' greet- ing. Great care should be taken in drawing this resolu tion to have it recite that the directors have carefully examined into the value of the property, plant, etc., etc., and that it is fairly worth the value placed upon it. for which the stock of the company is iss.ied in exchange. 13. A Resolution selecting a Bank in v Irlch the funds of the company shall be deposited, and providing for a method of endorsement of cheques and drafts, and +he manner by which the signature of the company shall appear on instruments used by it, should on motion be adopted. 14. The Secretarv should be formallv authorized to procure the necessary books, papers and supplies for his office. A motion to this effect should be made and passed. 15. AH other business necessary should be con- sidered by the directors at this meeting, after which a motion to adjourn until die next regular meeting, unless sooner called together by the president, is in order. 1.1 ■ I ■ •■ 13. I'rocedure at Gkxkral Meetings. (d) Chairman. — The Ontario Companies' Act directs that the I'resident of the Company shall preside as chairman at every general meeting of the company. It further provides, that if there is no president, or if at any meeting he is not present within fifteen minutes after tl e time appointed for holding the meeting, the share- holders present shall choose some one of their number to be chairman. At the time appointed for the meeting, the President should at once take the chair. If he is not present, the members, after the lapse of the proper interval, should elect a chairman. This will be effected by passing a M H ill Ch. 7.] l-KOCEDUHE AT (iKNKIJAL MEKTINOS. 83 resolution, duly jiropof J and seconded. " That Mr. be appointed chaiiinan of this meeting:.'' Some Icadinj; shareholder will propose this. (e) Quorum. — The ehairnian, haviu}; taken the chair, will ascertain that a proper quorum of members is pres- ( III. This depends on the by-laws. SomctiuK'S a speci- fied number forms a quorum, and sometimes a specified number holding? a certain amount of the capital. Very commonly the quorum for an ordinary meetiu}* is dif- feicnt from that of an extraordinary meetin^i-. In order to ascertain that a (juoruni is present, it may be ne(;es- sary to refer to the rej'ister of members and stock ledj^^er, iiiid accordinjily they should be at hand for referente. If there is not a quorum present within the linie fixed by the by-laws, the meetinj^' must be diss<»lve h M riiF 84 IMlOCEOrHE AT GENEUAL MEETINGS. [Ch. li {(j) lieports. — At .in ordinary iiKoting the first stop will be for the chairman to refer to the directors' report and financial statement, which will probably be t.iken as read, and make a speech in relation thereto, conclud- ing with a motion, " That the report and statement be adopted." This h.aving been seconded, the chairman wi)l put the question to the meeting as follows: The ques- tion is, " That the report and statement be received and adopted." This is the stage for discussion, and share- holders will probably rise and speak in support of or in opposition to the motion. This is the time to commend, find fault, or make suggestions as to the conduct of the aiTairs of the comi)any during the past year. The chair- man should name those who rise to address the meeting. When the discussion has ended, the chairman will rise and reply to any criticisms which have been made, and to any relevant questions that have been asked, and will in conclusion finally put the question thus: "The question is, that the report be adopted. Those who are in favor of the motion signify the same by an uplifted hand — 30, and the contrary — 10. I declare this motion car- ried " (or " negatived "). (//) Show of Hands. — The by-laws very commonly pro- vide that every motion shall be decided in the first in- stance by a show of hands, and where this is the case a show of hands must be taken; but if there is no such provision, the chairman may if he thinks fit, take the sense of the meeting by calling on those in favor of the motion to say "Aye," and on those who are against the motion to say " No." If there is no sound of " No " he will declare the motion carried; otherwise he will call for a show of hands, and declare the result accordingly. Upon a show of hands the chairman will look to the number of hands only, and will not take into account the votes which the owner of each represents in person or as proxy. Though it is not uncommon to declare the number of hands in favor of or against a motion, the chairman is not bound to make such declaration. !f! ell.:.] IMIOCEDUUK AT OKNEUAL MKETIN(;.S. 85 The oliairniaii luiviiif; dcclsired tlio resiill, ii ])oll may ])e donianded. (i) Poll. — If a poll is demanded, the Ontario Com- pnnios' Act provides "that it shall be takiMi in sncli luanner as the by-laws i)rest'ribe, and in defanlt thereof, llien as the chairman may direct. In the case of an (M|iiality of votes, at any general meeting, the chairman Hliall be entitled to a second or casting vote." Generally speaking it is more convenient to take the poll at once, but if there is a question of much im- ]»ortance to be decided, it is desirable to fix a future day iind hour, and to give all the shareholders notice that I heir votes will be taken at a specified place and time find printed slips should be prepared for the purpose of their voting {a). If the company has many shareholders it is not un- usual to appoint a scrutineer or two to take the poll, and in some companies the by-laws expressly require such appointment. In a small company the poll is often taken by the chairman. (;') The List of Shareholders and How Prepared. — In taking the poll it is usual to cause a list of shareholders to be made out from the register, thus: — NAMES OF NUMIIEK OF SIIAUKS. NUMHER OF VOTES. onsEnvATioxs. VOTES GIVEN. HOLUKUS. Fon. AKAINST. (a) Tho following form may be used. The Company, Limited. I, the undersigned, being tho holder of shares in the capital of the above named company, record my votes (for or against) the resolution submitted this .... day of 19 . Note. The sha»-eholder voting must fill in the word " for " or " against." yi~r m .so I'HOCKDl'UK AT (iKNKIlAI, MKKIIXOS. rcii. 7. TIh' list of Hliar<>liold«*i'8, jih on dati' of the annual nuM'tinj;, may Ix' doHcribcd aw tlic Trial Balanci' of the Slo<'k-L('recantion8 should be observed in ])rei)arinff this list. The stock-ledjjter should be conii)ared with the record of orij^inal shares issr.;'d; then with the record of calls, to see that none of the shareholders are in arrear in respect of calls, and then all transfers made should be compared and checked. (k) Open Volinfj. — At the time appointed for takinjj; the i>oll, the shareholders who vote personally will come up to the votin;; table and write their nanu's on sheets of paper headed " For " or "Against " the motion, as the case may be. A member votinjj; as ])roxy for another will write down his own name, and also that of the person whose i>roxy he is, c.p., " John Smith, by V>'. Jones, his proxy." However, sometimes it is arranj^ed that a mem- ber sisninjf his own name sliall be deemed to vote for himself and for all those whose proxy lie is. The votes havinp; been taken, the chairnmn or scru- tineers will enter them in the list of votes, in the column "For" and "A<;ainst.'' as the case may be. If, on refer- ence to the books or otherwise, a vote tendered is, for any reason, found to be invalid, f.//., because the voter is in arrears for calls, or the proxy is not produced, the chairman or scrutineers will reject the same and i)ut a note in the column of observations stating the reason for rejection. The poll having been closed, the numbers will be added up and the result ascertained. (/) Ballol. — If the poll is to be by ballot it is usual to prepare ballot i)apers beforehand. These, after being initialed on the back by the chairman or scrutineer, are handed to the members, the ballots being so arranged that each shareholder shall have one vote for every share of stock owned bv him. After the slmreholder has marked his ballot it is returned to the chairman or rii. 7.] i'KOCEDUHE AT (iKN'EUAL MEKTIN'OS. .S7 v.cDitinoorH, nnd tlic jtoll havinjj Imch rh»s«Ml. tin* hiillots tor or jifrainst will bo ((Minted and the result asccr- laincd (a). Tlio cluiirnian will tlion Htate the result \o (lie nH?et- iiif?, and declare that the inofion hua been carried or ne},'atived, as the case may be. (in) Ajijiolnlninil of Aiidihirs. — The next order of busi- iiess is the appointment or election of the auditors. These appointments are made by the sluireholders and iiot by tlie directors. (;/) Eh'iiiim of Vin'rlom. — Sonu»times when there is a small meetin}? ju-actically unanimous about the election of the directors (perhaps wishin}; to re-elect the f(H'mer hoard.) a motion is made and carried that the jiresident 1m' authorized to deposit the ballot electiu}! them. Where tills is not the case, the jn'ocedjire laid down under the hcadiu}; "First Shareholders' AFeetinj;" and numbered It). 11. and 12. should be observed. {(>) Condiui of ChdirtDnn. — The chaii-man should be courteous and retain his self-control. He should not consider enquiries made by shareholders as i>ersonaIly oll'ensive or detrimental to his difjnity. Shareholdeis who invest their money in the company have a perfectly hfjitimate rij^ht to enquire how the directors are usinj; that money. To attempt to browbeat a man because his interest in the company is comparatively small, is US MKKTIN(iS. Sf) iiM'ctinjj wjiH I'ojfulnrly ciilh'd iitul <'onv(Mi('«l mul duly iidjonrned, tlio HlinrcdioldprH may, at the adjoiii'iu'tl nuM't- iii^c. consider and dcterniinc any rorpoiatc l»nHin«'SM (liat niiK'it lawfully liavo been tiansacled at tlio orijjinal ni<'<*tinj;- J^iit whcro tluTc is an ahscniM* of jiood failli, iind an adjourned nicolinj? is hold in such a way as to )ii«'vent certain of the shareholders from knowing of it, th.* proceedinjjs are invalid. Where the orip;inal nieet- \\\ii was duly called and convened, the shareholders ai'O not entitled to any other notice v>f the adjourned meet- ing,' than that which is implied in the adjournment. 15. Sharkiioldli CAX Act OXT-V at OoKPcniATE Mkktint..-;. Shareliolderf can hold elections and transact the other business which thov as a body are qualith'd to transact only at a ccporate meeting; duly called and convened. Conf^eciucnLly, all votes taken elsewlu're thai, at such a nieetinjf, and all separate consents, either oral or in writinj?, whereby the shareholders assume to bind the company, are invalid and void. 16. Directors' Mketixgs. There has been some controversy and doubt as to the necessit}' of pvinff notice of directors' meetinfjs. ^fany cases apply to directors' meetings the same rules that apply to shareholders' meetings. Other cases hold that less formality and strictness is required in calling ii directors' meeting. Probably the former rule is safer, although the latter rule will ultimately prevail. There has also been a question whether directors could vote and act as a board without coming together. >rany attempts have been made to sustain a vote of the directors which they had separately and singly agreed to. The law, however, is now clear that such separate- assent is void. Directors are elected to meet and confer, and to act after an opportunity for an interchange of ideas. They cannot vote or act in any other manner. ! ;1 li .! ! 90 l»U()CKKI)!NriiH*ii>lo of law that tlio acts of a boaid of «lin'«'t»>is may ho vaiidalod l»y acquioscoiu*', «'V(MI tiion;;h the board wais suimiuoiumI iirojijuiarly or pnM'otHh'd irn';;iilarly. DirtM'tors, of «'ourso, raniiot act or vote by pi'oxy. A majority of tiic whoh> board of d'lrodors con- stitute a (|noriim, subject to the by-laws of the company. When tlie nu'etinj; is ju-operly caMed and a majority attend, that nuijority nu\y proceed to transact business. If a majority are present, a majoiity of tiiat majoi-ity bind tlie boanl and company, althou};h liiey are ai minority of the wh«>U» board. Toronto lirewinj; antl Maltinj; Company v. lUakeiVj). The li. S. (), (1ST7), c. I'lt), retpiires tiiai companies in- corporated liiereunder shall not have less than lhie<' directors. \vln) shall not be appointed directoi-s unless they are shareholders, and it was provided by the by-laws (»f the i)lainl ill's company that a diiectiu' should not only be qujjlilied when elected, but that he should continue to be so. The plaintilV's coui- jjany was manaj^ed by thiee diri'ctors, and one of tliem disposed of his stock: — Held, that he thereupon ceased to be a director. an«l the directorat«' then lunanu' incom- plete and incompetent to manajje the atVairs of the com- pany. tS(/;////(', also, even assuminji that a (luornm (2) ot the directoi's coiild manajje the business, yet, where neither the statute nor the by laws j;ave the 1/resident a casting vote, rt'solutions passed by such a vote, at a meetinji' attended only by the President and one other director, were invalid. 17. Prockkdixgs of Dirkctors. The by-laws jjenerally provide that the directors may meet for the desir\viH(> (Iclcriiiiiicd. ii Hpccinc iiuinlx'i' («■.//., Hiirr) hIuiII Ioiiii a <|ii<>inni. The qiioriini is nsiiiillv lixcd with rdVrciuM' to the iiiiiiiIh'I' of (lirrrtoi'H, <.//., if tlu'n? siro live ilirrctoiH, tliicc is the usual (|u<>i-uni. Tlir ohjrrt of lixin^' a .<|noi'uni is to avoid tin* ihmch- sit,v of i-<><|uirin;; ;ill the directors to roncur in I lie traus- artiou of business. In some by laws the \vor <'iill(>(l sp.M'iiil. 2. Every luct'iiiiK shall he I'dd at tin- lirad (dllrc of ilir cuiiipiiiy. J5. An ordiniry nicclin;,' sliall lio ('uiii|>ft«'iit to traiisatl thi' follow- iii>; biisiiicss, iianicly: 'I'o, I'tc. All other Imsiiics.s sliall ho iraiisacti'd at a spcfiiil iiu'ctiii;,'. 4. Any dirt'rtor may. and ui)oii the rccniisitioti of any director the .secretary shall convene a special nieetinj,'; not h-ss tinii hours notice shall be ^iven tliereoi' to each director. lOvery such notice shall be Kiven as follows, etc. The notice must, stale the time li.ved lor the meeting. r». The (|in)ruin of an oruhition8 will be adopted by passing a resolu- tion, " That the following regulations as to board meet- ings, etc., be adopted," and the resolution and regula- tions will be recorded in the minute-book of the direc- tors' proceedings. I PP" i 92 PROCEEDINGS OF DIHEOTOIJS. ;!; is. Hi- [Ch. 7. As to the chairman: The Ontario Act provides for the election of the president from amongst the directors and he will act as chairman. In some cases, a deputy-chairman is ap- pointed, and in the absence of the chairman he will I)reside. In his absence, the directors present at any meeting will elect one of their number to the chair. At a meeting of the directors, commonly called a board meeting, the secretary will be called on to read the minutes of the last meeting, and if found correct, the chairman will sign the same. No discussion should be permitted as to the policy of the proceedings recorded. If a director objects thereto he can, after the minutes have been signed, move a reso- lution impeaching such policy; sometimes, however, the directors' regulations require a special notice or quorum for such a resolution. The chairman will then call attention to the busi- ness to be transacted. Generally a memorandum paper (a) (previously prepared by the secretary) is pro- duced. The chairman will refer successively to the different items of business, and they will be dealt with as the meeting thinks fit. If any difference of opinion exists, the chairman will put the question to the vote, and the decision of the majority will bind the meeting, unless the regulations otherwise provide. The regulations gener- ally give the chairman a casting vote, in case of an equality of votes. In some companies the decisions of the meeting as to the several items of business are ex- pressed in approprite resolutions, duly proi)osed, sec- onded, and passed. In others a less formal procedure is adopted, and after a discussion of each item, the chair- man gives directions to the secretary or manager in relation thereto, with the assent, expressed or implied, of the other directors who are present. In any ease the (a) See form, pott. ihixL Ch. 7.] DIUEOTOUS MEETINGS. 93 jnoceedinRS are recorded by the secretary iu the minute- book of the directors' proceedings. The following order of business may be followed: — (1) A quorum beinjc present, the President shall call the Board to order. (2) The minutes of the last mooting shall bo road and approved, if there be no ainondments. (3) Reports of ollicors of the company, (4) Reports of committees. (,')) Unfinished business. ((!) Miscellantous business. (7) Now business. ;: 5 '^^f; li : i i . ..ii"'. 1 Jill 1 rlT; ': i «l '.\ 1 ■ . ! CHAPTER VIII. BY-LAWS, BOOKS, AUDITORS, CONTRACTS, SEAL. 1. By-laws. 2. dlffekknce between a ResoLU HON AND A By- J.AW. 8. DiElEUENCE BETWEEN RE(iUl.ATl()XS AND BY- LAWS. 4. General Pkinciples of By-laws. 5. Subject oi' By-laws, (). Effect of Bv-laws. 7. Necessity of By-laws. ! N. Method of Duaftino a i By-law. 9. Books io be Kei'T. (a) Rr.coui) of I-kttkus Patent, KTC. {b) EH(iISTEU OK SlIAUEHOLDERS. (f) HeiIISTKU of DlltKCTOltS. ((/) KiuiiaTKK OF Tka.nsfers. ((') Stock Ledukk. (/) Hooks of Account. (i)) MiNi'TE Books and Mode ok Entekino M inutes. 10. Wheue Books are to BE Kei'T. 11. STATEMENT OF IsCOME AND EXI'ENDITUUE TO BE Made. 12. Insbection of Books. 18. Audit; Auditous and theik Duties. (//) Value of an Atdit, (i) Duties of an ArDiToii. (,/') FlUST, How Al'l'OINTEl). (Ic) Qualifications of an Audi- TOU. (/) Comjiencesient of Audit. (m) The Casii-Book. (;/) VouciiEits. (o) Heconciliation Statement. (p) Cash in Hand. ((/) Otiieu Hooks. ()•) Bills Beceivahle. (») Accot'NTS ]{eceivaiile ; Bai> Dehts, How Writ -i EN Off. {() Accounts and Bills Bayahle. («) Inventories, (r) Depreciation. (w) The Balance Sheet. (.(•) Audit should re Thorouoh. {ij) Position of Auditor when Accounts Incorrect. {z) S U (i (1 E S T I O N of BeTTEK Methods. 14. Metjiod of Drafting,. Si<;ning and Seallng Coui'oh.ate Deed ob CoNTIfACJ'. 15. C o K I' o B A t e Instru- ments Made in Name OF Officer Enforce- able a(;ainstComf'any. 1(1 P K E C A U r I O N S WHEN Making C o n t k a c t s WITH A Company and Hints io Credhors. 17. Seal, Origin of. 18. Seal, Necessity of. 19. Seal, Form and Use of. 1. By-Laws. A joint stock company, as we have seen, has power to make by-laws >vithin the terms of its instrument of tj] m . Ch. ortant features of a cori»oration is the power to make by-hiws. A by-law is a permanent rule of action, in accordance with which the corporate aflairs are to be conducted. 2. Difference Between a Resolution and a Bv-Law. A by-law dilfers from a resolution in that a resolu- tion applies to a single act of the corporation, while a by-law is a pernument and continuing rule, which is io be applied on all future occasions. o. Difference Between Kecli.ations and liv-LAWS. It is sometimes diflicult to draw the distinction between by-laws and mere regulations lor conducting the company's business. By-laws nuiy be said to control the action of the company itself, while regulations, on the other hand, are intended to control the conduct of those dealing with the company or of its employees. By-laws are usually formally adopted by the company or the board of directors and set out in writing, while regulations may or may not be in writing, and are often- times proclaimed on their own authority by the com- pany's officers. 4. General Princii'les of By-Laws. By-laws must not be contrary to the law of the land. They must be in accordance with the provisions of the Charter or the Articles of Association of the com- ]»any. They must be reasonable and consistent with the spirit and terms of the corjjorate charter. \\ 96 EFFISCT OF HV-LAWS, [Ch. 8. iS i ; 5. Subject of By-Laws. The principal subjectis of corporate legislation by moans of by-laws are the definition and regulation of: — 1. The time, place, and manner of calling and con- ducting the meetings. 2. The number of shareholders or members consti- tuting a quorum, unless this be provided for by the governing statute. .3. The requirements as to proxies. 4. The time of the annual election of directors and the mode and manner of giving notice thereof. 5. The qualification of directors. (>. The compensation and duties of oflflcers. 7. The manner of election and the tenure of office of all officers other than the directors. 8. Regulating the transf< • of shares. 0. The formation of reserves and the limitation of dividends. Other by-laws may be required as special occasions arise, such as for issuing bonds, mortgaging property, varyinjr authorized capital, or the number of directors, etc., etc. G. Effect o-f By-Laws. Bj-laws adopted by the shareholders of the com- pany, in general meeting assembled, are binding on the dire<'tors in the same way that the charter and the stat- utes are. By-laws made by the directors themselves are binding until the next annual meeting of the company, and in default of confirmation thereat, shall, at and from that time only cease to have force. As the officers of a company are supposed to be fam'iar with its by-laws, such by-laws are binding on theui, even though such officers are not shareholders of the company. Shareholders of a company are, of course, bound by its by-laws, and it is not necessary to show that they have actual knowledge of them. ii Cli.8.] XECESSITV OF HY-LAWS. The fact tliat llioy are coniuctod with the coini>aiiy implies such knowh'dfje, and as every ineinher of a coin- jiany has a lejial ri^ht to inspect all the coiiunjUe ii'cords it will be held that ijj;norance of tlu; by-laws is wilful ignorance, since oi)poitiniili«'s of obtainiii};' in- formation in refjai'd to them are always open to him. It may be stated as a j;*'neral proposition that a company's bj-laws are for the jiovernment of its mem- bers, ollicers and employees, and that they do not bind strangers without notice. 7. Xi-:ci-:ssiTV of IIv-Laws. As in most, if not all, of the Provinces certain matters such as the calling of coi-porale meetings, the duties of the officers of the company, etc., are intended to be regulated by bj'-laws, the neglect to adopt smh by-laws is attended with serious inconvenience and often- times with loss. This being the case, it should be the first duty of the directois of a newly organized company io secure the ]>assing of a suitable code of by-laws for its government. 8. Method of Draftixg a Bv-Law. It is dc^sirable that by-laws should have a jtre- amble in addition to the enacting clause — as given in the table of by-laws herein (a). 9. Books to he Kept. As a matter of course and necessity, every enter- prise of any importance, whether individual or associate, must include books in which a record of its proceedings and of its affairs are kept. But ])articularly so in con- nection with joint stock enterprises, in which the means of a lesser or greater number of persons taking no active r>art in the management of its affairs, and who are dependent upon such books for a knowledge of its affairs, (a) Post. W.8.D.M.— 7 98 BOOKS TO BE KKrr. [Ch. 8. are involved; and alHO where the liability of the share- liolderH individually towards the creditors of the enter- prise is limited to the amount unpaid on their shares. The books of a company furnish evidence as to what persons are entitled to the rij^hts and privilej^es of share- holders, and as to whom creditors may look for pay- ment when the company becoim^s insolvent, the creditors beinjj^ presumed to have relied on the books. These causes tojtether render the keepinj? of books by Joint Stock Companies a matter of so much imj»ort- ance that the legislatures have not only made it <'on>- l)ulsory to keep certain books, but have described in detail what such books shall contain and exhibit, and imposed penalties for n<'jii;lect of such provisions. And the importance of such j)rovisions is so obvious that thev are now found in almost merv Joint Stock Com- j)anies' Act. These books are: — (a) Becord of LoHers Palcnt, dr. — A blank book in which a copy of the letters ]>atent and of any suppl'- mentary letters patent, must be written. If the com- pany is incorporated by si»eembeis is small, these five books may conveniently be bound under one cover; but if lar{j;e, it is better that they be in s^*paiate books. Sample paj'es of these books will be found anion;:: the forms given in this book. (/■) Bonis of Account. — Every company must adopt such forms of accounts as suit its ]>articular business. They should embrace such books as will enable the man- agement to know exactly what is being done in every department and in every detail and at what <-ost. Only by accurate statistical knowledge can moany, duly authenticated, and smli minutes shall b<' verified by the signature of the president, or other pre- siding officer of the company. § !1 ' ij : h\ i I ■ ! A 100 l»K)KS TO HE KEPT. [Ch. H. As a }j:oo(1 niid siiuple syHtem of accountrt is ex- tremely deHirable, it will in any case of doubt be expedi- ent to take llie advice of a professional accountant as to wliat other books are requisite, and as to the mode of keepinj; them. (ff) Minute Jinnls and Mode of Enicr'uKj Minutes. — Every company should catise minutes of all resolutions and i>roceedin}j;s at jjeneral meelin^js, and at meetings of its directors and managers, to be entered in books pro- vided for the purpose, and such minutes, if signed by the chairman of the meeting, or of the next succeeding meeting, are admissible "as evidence in all legal pro- ceedings. The usual course is for the secretary to take, in a book kept for that purpose, notes of the proceedings of each meeting, whether a general or board meeting, and afterwards to make a dear record of them in the Minute Book, and to read the entries at the next gen- eral or board meeting, as the case may be. The chair- man then puts them to the vote and signs them if ap- proved; or, if any amendment is required, that is first made, and initialed by him, and the minutes are then signed. Everj' resolution should be in writing and marked by the chairman or secretary*, with the result of the vote, and be initialed by him. These resolutions should be carefully filed and preserved for future reference. It is generally advisable to have separate Minute Books for general and board meetings. The former may fairly be open to the inspection of members, but the Directors' Minute Book, containing as it does a record of the private attairs of the company, should not be access- ible to any but the directors and the secretary. The following will give some idea of the mode in which minutes are entered: — The Fourth Ordinary Meeting of the (Limited), held the th of of the company) at o'clock. Mr. in the chair. Company, (at the head office r li Ch. .v liis proxy, .F. P., ete. Tlie notice eonvenintf the iiieetinur was read by the Secretary. The inimites of the Keueral meeting of the coinpmiy, held the th idtiiiH), were reid by the Secretary and signed by thi- Chairman. It .vns resolved unanimously that the report of the directors and the nccou ,(s annexed thereto be talieu as read. T'i»on til,' motion of tlie Cliairman, seconded l>y Mr. it was resolved, after discussion, (or ncin. con., as tlie case may be). Upon, etc., it was resolved that a dividend, etc. Upon the motion, etc., it was resolved that Mr. be and he is hereby elected a director in the place of Mr. Upon, etc., (vote of thanks). A. B.. Chahtnaii. If an aiiit'iuinient be moved, the minutes will run thus: — It was moved by the chairman, and seconded by Mr. , That, etc. An amendment was thereupon moved by Mr. and seconded by >[r. , (Here set it out; e.g.), " That the report be received, but not adopted, and that a com- mittee of live shareholders be appointed, with power to add to their number, to inquire into the formation and past manasement of the company, and with power to call for books and documents, and to obtain such legal and professional assistance as may be necessary, such committee to report to a meeting to bo called for day, the th of ." The amendment was put to the meeting and negatived. The original question was then put to the meeting, and declared by the Chairman to be carried. Erasures, scratches, and alterations weaken the evidence contained in books of record. Events as remembered by the person making the entries in the books may be primary evidence, in the way of explanation, but the subject matter as oripnally recorded is the evidence of the fact, and care should therefore be taken that all original entries are carefully and correctly set forth. I ■ 4 ' lit ; ;i I t lOS INSPECTION OK Hor)KS. 10. WiiKKK Hooks auk to iif. Kkpt. [Cli. S. S<'f Ihr Oiitiirio ronipimi^'s' Art, <1ir(> conlaiiK'd in tlit> Do- iiiiiiion and (jnclicc Ads. 11. KtATKMKXT ok IxCO.MK AXD ExI'I'-VDITIUK. to 111'. M \1)K. Tlic Ontario (Vini|)aiii<'H' Act dirocfw thai at cacli unnnal nn-rtinn:. or. at least, on<'(' in every year, aind at intervals of not more than llfleen months, the directors shall, at a jjeneral ineetinj; duly calleast y«'ar, made np to a da^e not more than three nuMiths before snch annual or jicneral meetinj;. and sliall also lay before the company such fiirther infoi-mation I'cspectinj; the company's hnancial ]>osi(ion and profit and loss account as the by-laws or the charter of the company may require. 12. Inspection of Books. "Such books u<) shall durinj; reasonable business hours of every day, except Sundays and holidays, be kept o]>en for inspection of shareholders atid creditors of the company, and their personal re])resentativ<'s or agents at the head oflfice, and every such sharehUs hut to takr i-xtrncts llinclroni; nor ran tlu' nircdors by n-soliition cxrlnd*' one of the incnibcrs from sntli insixMlion, altlionp:h they lu'licvr him to ho hostilo to tlw inli-n'st^ of (lie inslilntion. '* lUit witli r('S|M'(t to a nn>r»' stian;-*'!' nnconni'cfcd in interest, sneli liool^s are to he coiisidei'ed as (lie books <»f a private in and faution wiiicli a ri'asonalily coni- pi'lont, caroftd and cant ions auditor would use. ^^■!lat is rcasonahlo skill, care anrono conclusion that there is soiuetliin>; wron;;. llo is a watch do;;, not a bloodhound. lie is justified in believing tried servants of tlu; company in whom I'onlideuce is placed by the company. lie is I'Utitled to assume that they are honest and to rely upon their repre- sentations provided he takes reasonable caie. If there is anything calculated to excite suspicion, he sliould probe it to th(> bottom; but in tlie absence of anything of that kind ho is only bound to be reasonably cautious and careful. ... It is not the duty of an auditor to take stock; he is not a stock expert; there are many matters in which he must rely on the hoiu'sty aiul accuracy of others. He does not guarantee the discovery of all fraud." In another English case, cited in the Law Reports as the Leeds Instate, Building and Investment Co. iigainst Shei»herd (/')• association, and consiMiiieiitly a proi)er income and expendi- ture account, and was properly drawn up, so as to contain a true anil correct representation of the state of tlie company's nffairs." (/') First, lioir nppninird. — The auditors should be ap- ]toin1ed by the sharohohleis. tit tho annual o'onoral meetinp. The reason why tho shareholders and not the directors, should ntake those ai>pointments is because the auditors are essentially afi'onts of the shareholders, and their duty is to act as a check upon tho diroctors, and to };ivo an assurance to tho shaioh(dders, that tho balance sheet and report are a hmn file and correct state- ment of tho attairs of tho comi»iiny. They hold ottice for a year and ai-o olif'ible for re-election. (/.) QitaH/Jcdtinns of. — It is desirable that the atiditor should be familiar with tho Acts under which the com- ]tany, of which ho is tho auditor, is incorporated, and special attention should be jiivon 1o thoso sections re- Ijitinji' to the liooks. Accounts, and Anntuil Statements, and to tho api»ointmont and duties of the Atulitor. Of course, tho initial qualitication of every auditor is ji thorouf^h knowIed{>e of the thoor}- and practice of com- Ch. N.] COMMENCEMENT OK AUOIT. 107 iiuMcijil b()()kkc(']»iiiji;. So inncli (Icjx'iids ui)on llic skill and jiKlji'inciit of an auditor in 11h' iiilinitc variety of circunistaiKcs with wliich lie will Ix' (•oiifronlcd, and tlicrc ai'<' so fi'ciiucntly occasions when he may lie oalloil ni»on to demonstrate his views, that a s])e(ial trainiii};' for sn<'li duties will be found invaluable. In a work of this nature no exhaustive treatment of the subject would be possible, and therefoi-e only jieneral principles are stated. There are. however. slanear amonj"- the liabilities to sharehohhM's in the r>al- ance Sheet. Sometimes in small com]>anies the prosjtectus direrepared for the auditor and provision should be made for writing oil' bad and doubtful aeriodically. This list should be classified under three heads, viz., g(H)d, doubtful and bad. Tlu» amount due from the first may be placed at face value, the doubtful ones should be valued at GO to 80 per cent, of full value, and the balance of 40 or 20 ])er cent., together with the total of those considered bad, should be cairied to a " Lost Accounts and Notes" account; or, if i)referred. it may be styh'd a " IJad Debts Account." This siccount should be (►pened by a journal entry with a comph'te exi>lanation alan has the advantage of showing not only the exact amount wiitten off each year for bad debts, but the individual nam«'s (►f the debtors, each of which occupies a separate line in the account. [Ch. 8. I should they are ii'chjisf'S. )Ujili the It which t side of (McivjibU' [her they on hand pjiid and sconnted, in liable icn n/f.— A [; date the e auditor oil" biid should be 1 and bad. d at face to 80 IH'l* per rent., id, should count; or. Account." I'utry with lat if the accounts. dits were. liu this ac- he closed [antap;e of each year ke debtors, ■e account. Ch. S.] I.WENTOIUES. Ill Tlie facility with which the whole list, even if it extiMuls over many years, may be inspected will be found con- venient. If any of these accounts aie realized upon subse(|uently. an <*ntry of "Cash debtor to Had Debts" lojicther with the necessary exj)lanations should be made. The saiue i)lan should Ix' follow<*d in dealing- with a woi'thless note, adding;' after Ihc words " liills Kect'iv- able " in the Lost Accounts and Notes Account the name of the maker in brack<'ts. Another plan of dealing' with Bad Debts whi(t of soltinp; aside an auiomit annunlly foi* depreciation is to spiead the loss over ti series of years, otiierwise any one year wonld have to bear the whole anionnt. Unless this depreciation fund is carefully thought out, and iis on, the shareliolders of tlie coi-poration, and ]»erhai>s the liondhohhM's, may in the course of rears find that their securities cover a jn'operty of little or no business value. If certain sums are not set aside to meet this deprecia- tion, and if because of this, dividends are paid lar<;(»r than >vould otherwise be the case, to the extent to which this is carried, the returns received by the shareholders aie not dividends but their capital returned to them piecemeal. Iiuildin{»s. The depreciation will de})end in a measure on the quality of the materials of which the buildings are constructed. An estimate the time the building will last should be made ane ^ roportionate amonnt, sufficient to offset it by the end of the period, should be written off each year. Repairs made, from time to time, should be charged to Profit and Loss Ac- count. Leases. As a lease runs for a definite number of vears, a certain amount should be written oft' annuallv, so that when the lease expires the asset will have dis- appeared, by such credits, from the books. This amount may be a fixed proportion of the origi- nal cost each year as, for instance, in a ten-year lease, ten per cent, each year; or the account may be written off' on the annuity system, wherein the amount is ad- justed so as to allow for interest on the investment. Plant and IMachinery. The question of deprecia- tion in machinery is a most difficult one to treat, as so many causes of depreciation enter into the calculation. Among these may be mentioned — improvements which reduce the v.alue of the machine at present in use; re- duced cost of labor and materials; wear and tear, etc., Cli. 8.] AUDIT, AUDITOHS AXI) TKEIH DUTIES. 118 ise. tten ad It. k'ia- lion. Inch re- ?tc., otc. If it ho possihh' to vsilnc the jthiiit and inachinovy carh y«'ar and <*hai'f;(» tho rodiiction to " l)«'i»r«M'iation Account" it is the host way. Wlunc this is done th^' following; di'dudions may safely be made. As boilers wear out rapidly 10 to 1.") per rent, fdiould be written <>tT. On other macliinery 5 to 10 per cent, may be deducted from the reducinji; l)alances according to the natur*' of the machinery. All rej»airs and renewals of parts should be charjicd to Loss and Gain. Office and Shop Furniture and Fittings; deduct say 7 per cent, on the reduciu}; balances. Horses. No percentage rate of depreciation can be determined upon. The safest plan is to have the horses valued annually and the reduction written otf. (iv) The Balance Sheet. — The balance sheet is the most important statement laid before the shareholders, as, if properly drawn up, it shows the exact financial position of the company. On one side are ])laced the liabilities, not only to the creditors, but also to the shareholders themselves, while on the other side are enumerat<'d the assets and the property of the company. Uefore giving his certificate to the <'orrectness of this statement, the auditor must examine in detail, each item on both sides, and satisfv himself that the liabilities have not been understated, nor the assets over-estimaied, or vice versa, as, without intending to deceive the share- holders, or to act in any way dishonestly, it is y the auditor and jK'issed without inquiry. Sums due on mortjiajjes and debentures, if any. shouUl be kept distinct Crom the sums due t(» ordinary creditors. IJndei' " Sundry Tn'ditors," or some sinnlar headinj;', should be included all the sums due to those creditors of the comi>ai'y who are not mort^aji'ees oi- d<'benture ludders, and who do not hold securitv, lor iiavnu'Ut of the same. The auditor should then inspect the securities ro- presentinjjj the assets, and ascei-tain that they aie in the possession of the company, free and unencumbered by mortj:;ages or any chaiges, unless their being so is clearly stated in the audit. (.(■) Aiidil sli'iiihl he thoniiiijh. — A thorouj-li and efti- cient audit should embrace an examination of all the transactions of a company, and an auditor acting on this princi]»le, Avould ascertain that all had been duly entered and discharged. A ])urchase made, a sale efl'tnted, or any matter of business transacted, and once entered in one of the subsidiary books, becomes i)art of a svstem with which it is so incorporated, that it cannot be omitted, overlooked or cancelled without so disarrang- ing the organization that an efficient auditor would at once detect either the cai-elessness or the fraud. (y) FoMiion of Audilor when accounts incorrect. — Where from any cause an auditor cannot certify to the accounts he has audited, and diflFerences have arisen between the directors and himself which he has been unable to re- move, his best plan under these circumstances is to address to the members a full report on the accounts. i Ch. S.] nUAKTINO AND SKAMNO DKED. 115 Hclliii}; forlli ch'iii'Iv llicrcin llic iioiiils jif issue li«>|\v«*('n the i' sliould Im> nlth" not onlv lo clicck and verily llic acconnis placed Ix'l'oi-e liini, lint also, if lie lin<1s the books ar(> kepi in a (•arelesH inann«'i' or on a liad s.vsleni. he able to su;i;;est a betler method. Hie aany. Tn his anxiety to do his duly towards the share- holders, the auditor should be careful not to inter- fere in the manajiement of the company by insisting on the adoption of any clianji'es in the system of book-keep- iu}^, the i-unnin<>' of the olllce, oi' in any other matter. He should endeavcmr to introduce his reforms Ity friendly suji; ((iiniiiiny should lie signed to lli<> iiishinnriil, iiiul llicii nIioiiNI t'ollow (lie word " h,v " niul llio iiiiiii)' of (he onicrr or pct'soii who iiiaUcs tli<> HJi^iialnrc. in. roKI'OKATK TnsTIUMKNIS Ma!)K IN Till". \aMK ol" AN ()i-|-i(i-.K ()i< A<;i:nt Instiai) di' in tiik Xamk <>i' the <\)I<1'(»Iortant ditTcronc*' ItclwM^on Itartnorships and coinpanlcs, for a person dcalinji with 51 ])artn(M' in a linn is not presumed to know the contents of the i)artnership deed. Accordin}j;ly, greater caution is nec«'ssary in dealinj; with a company than with a partnership. ]\rany persons do not take these jirecautions; they nssume that the directors and ollicers of the comiKiny will do evei'ythinj;- in ju'oper form, and that no trouble will arise. Where a jjorson has entered into a contract which l»rovc»: to be vHra vires of the company, it must not be assumed that he will not have any rights aj?ainst the oiikpany, or its directors or ajjents in relation thereto. Lojjal advice should be taken and the course recom- mended followed. A creditor of a company may enforce j)ayment of a debt, either by bringing' an action against the company or by petitioning for its conipulsery winding up. Where the company is solvent, and the non-payment of the claim is due to a dispute as to its amount or TW Ch.«.l SKAI,, oKUilN (»|-. 117 V]i1ir-in;i;iii;^' of jiii iirtioii in (hi' pro]it'r ('oiifs«\ To \ty\i\ii iiii iiclioii, (lie cliiiiiiJiiit will iiislrinl his solici- lor io issue a writ ii^iiiiiHt tli<' ruinpiiiiy, jiikI in iiiiiny t'liscs IliP service of the writ lends Io ji sellleinenl of Ihe rliiini. ir not, the aelioii will lie |)i-oseciile<| iiiiil Jiiil^- iiient ol)t;iinex<'i'o|)ei't y of the eonipany sei/.e*l iiml sold. If. however, the eonipiiny is in ditticiill i<»s, cnnnof meet its ohli^^iilions, and doulit exists as to its solvency, and a <'t-editoi' fot- an undisputed amount cannot obtain payment, the usual course in to petition for the winding up of the com|»ajiy. The decision as ti» wlielhei- the cir- I'umstances warrant the adoption of this rourse. shouhi rest Avith the solicitor liefore whom the matter is hrou^iht. 17. Si;.\r.. Okkwx oi". The use of seals is of ^reat antiipiity as we tind that Kinj; Darius sealed ''with his (»wn sij;net ami with the si}i:net of his h>rds." (Itihle, I)ani<'l (J, v. 17i. And the I'rophet -lei-emiah sai up, by sijiuinj; their mark when unable to silish method of writini!; their names and signing' with the sign of the cross. * This neglect of signing, and resting only ni»on the anthenticity of seals, remain<'d very long among ns; for it Avas hehi, in all onr books, that sealing alone was sutlicient lo authenticate a deed; and so the common form of attest- ing deeds, ifcdicd and delivered, continues to this day/' A right to have and use a common seal is said to be incident to all companies. The use of the common or corporate seal by corpoi-ate Ixulies is supp(»sed to have originated like private seals, i '>m the general inability ot persons to write and like the private seal, it has continued in use, although the original rewson for its use has ceased to exist. 18. Nkcessitv ok Sical. The old idea of the necessity of evidencing every appointment of a servant or agent, or every contract into which a company enters by instrument under seal, has long been dei)arted from, and the dei)arture is recogni;'.«'d and ratified by law in all cases where the inconvenience of so doing amounts to a practical necessity. Indeed, so far from requiring every such api»ointment, authority, or contract to be under seal at the present day, the rule is, that in a large number of cases such appointments are made without any writing at all. This does not apply however to municipal corporations. 19. Form axd Use of Seal. The Courts will hold any device or form to be the corporate seal if there was an intent to bind the cor- poration and a seal of some kind was used. Ch. 8.] KOliM AND rsK OF SKAL. 119 It is no loTi}j;«'i' ncoossaiy that the inipiH'ssinn of a t'Jit. the usual course of business and similar circum- stances. The mere al1ixinj>- of the corporate s^-al is of itself sufficient execution of a contract or deed, when jji-ojierly affixed by a person duly authorized, and no sijiuature at all need be made or used, but such sijinalure is alv ays advisable. If an instrument or contract a|>])ears to be sij-iied by the propel' officiM* and the cori)orate seal ap]»ears to be affixed, the courts will ])resume that the seal is the cor- jmrate seal and was affix<'d l)y proper authority, when proof is jiiven that the officer signed and sealed the instrument; but this presumption may be overthrown by proof that the seal was aftixed without i)ropei' authority. The com])any, by ratification and otherwise, may easily cure a defect as to the sealinji'. A defect in the acknow ledjiinent or att<'station is overlooked by tin* courts if there is sufficient to indicate the intent to acknowledye. ilil ;: n -'' IT n^ 'f|; I ! i !: CHAPTER IX. STOCKS, CALLS, ETC. 1. Definition of Author- ized Capital ; of Suh- scHiHED Capital: of Paid-up Capital; of SuiU'LU.s, Reserve, Rest and Surplus Fund; of Corporator, Subscriber, S h a r e- holder and stock- HOLDER ; OF Share of Stock: of Bond: of Debenture ; ok Treas- ury Stock : of Under- writing. 2. Difference Between Capital Stock and Shares of Stock. 3. Price of Shares. 4. Classes of Stock, Com- mon and Preferred: Deferred; O ve h- issuED : Watered or Fictitious. 5. ]\rETHoi)s OF Issuing Watered or Ficti- tious Stock. (a) Opinions as to Watered Stock. {h) Is l-'icTiTiofs Paid-l'p Stock Void ? (f) ExPltESSLY FORHIDDEN ]!Y Cr.HTAiN- Acts. (d) SnAiiKHoijiEits ]\Iay Complain OF ISSI'E OF. 6. Issue of Stock in Min- ing Companieswitiiout Pe RSONAL LlABlLITV AND AT A Discount. 7. Certificate of Shares, 8. Company Should Re- quire Surrender of the Outstanding Cer- tificate. 9. Alleged Loss of the Old Certificate. 10. Allotment of Stock. 11. Methods of Issuing Stock. 12. Preferential Stock. 18. When Shares are not Paid in Cash. 14. Paid-up Shares. 15. Right of Transfer of Shares. 16. Restrictions as to TiuNsFER OF Shares. 17. Precautions Respect- ing Transfer of Shares. 18. Tr a NSFEROlt MUST HAVE Paid Calls. 19. Regi.stky of Transfer. ((') How ISIaiie. (/') llEdlSTEUlXO OHK.INAL SlOCK CEltTII'ICATKS. {(l) E E(l 1ST E KI N II Ke-ISSUEI) HtOCK ClCliTIl-ICATES. (/() Re(ii8Teu each Ceutificate AS Issued. ((') The TuANsFEii Record. 20. Definitions of Pledge, Mortgage and Lien. 21. Pledge of Stock, ho^^' made. 22. Liability of Members ON Stock. 2;3. How Liability may be Incukred. 24. How Repudiated. ; 1 Ji Ch. 9.] STOCKS, CALLS, ETC. 121 25. Shakes EECiisTEUED | 32. Power of a Company WITHOUT KNOWLEDOE OF ALLE(iEi) Owner. 26. The Liahility of an AoENT AS Transferor OR Transferee. 27. LiAHH.iTY, HOW Termin- ated. 28. The Various Remedies FOR Non-payment of Shares. 29. Forfeiture of Shares. 30. Notice in Case of. 31. Tender, ry Siockhold- er rffore Forfeiture. TO Acquire and Hold its Own Sr(>cK. 83. Improper Cancella- tion OF Stock. 34. Calls. (j) MroANiNfi OF Teh.m. (k) What auk. (/) How MADK. (in) Call is Gkneually Neces- SAllY. (ii) When a Call is Unxeces- SAUY. (o) Notice of Call. (p) IsTEUEST on AuiiEAKS. (ry) Calls must he Imi'ahtial ani> U.NIFOIiM. (/■) When no Call has iu.en MADE. 1. Definition of Authorized Capital; of Subscribed <'ai'ital; OF I'aid up Capital; of Surplus, Kl-skkvi:, Kest and Surplus Fund; of C<.)RPt)RAToK. Sui;- scRiisER, Shareholder and Stockiioldiir; oi' Share of Stock; of lioxo; of DKP-KxruKK; of Treasury Stock; of Underwritinc. Autlioi'izod Capital, meaus the amount of stock that a coiiii>any is autlu)i-iz«'d to issue undci- its chartt'i'. Subscribed Capital, means tlie amount of stock that l)ei'soiis have agreed to take and pay for, as shown on the Stock List. I'aid u}) Cajntal, means the total amount paid upon the stock subscribed for. Surplus, Keserve, Kest. These terms are synonym- ous and are generally used to designate the amount Avhich the assets of a comjiany are in excess of its lia- bilities, and the capital paid in by the sliareiiolders. 1'his difference is usually undivided j)i(»llts. lOxample— Ifainillon Sluvc L'o}iipiinij. Total Assets !|110,00() Total Liabilities (to the public) .s .").((U(> Capital Stock (Liability to the Shareholders for paid up capital) .fKMKOdO Surplus 5,0(10 Ill (1,000 IIP i ':f m I ^ ' ljll l\ ll i r 1 J ' t ■ i • . lilil 109 DEFIMTIOX OF C(Mll»OUAT()U, MOXI), ETC. [Cll. 9. In lliis case the assets are snitioieiit not only to ]n\y the debts due Ihe pnMie and tlie amount snhsciihed by the sliareholdrTs, bnt also to leave u sui'plus of !if5,()l)0. Suiplns Fund. Snii»his or Keserve Fnnd, is a por- tion of the i)rofits of a company, set aside for the pur- pose of creating! a fund to meet losses or uiiforeseen emerj;en<'ies. A Corporator is one of those to whom a charter is jiranted, or of those who tile a certiticate of incorporation under a general incorporatiu};" statute. A Subscriber is one who has aj^reed to take stock from the coi-i»oration on the original issue of such stock. A Shareholder in this country means the same thing as a stockholder, and the terms are used int<'rchangeably to indicate one who owns stock in a company and has been accei>ted as a stockholder by the comi)any, A Share of stock may be defined as a right which its owner has in the management, profits and ultimate assets of the company. It is said that *' the right which ti sharehohhu' in a company has. by reason of his owner- ship of shares, is a right to meet at shai'eholdeis' meet- ings, to recjuii-e that the corporate i)roj»erty shall not be diverted from the original purpose, to participate ac- cording to the amount of his stock in the surplus })rofits of the comi)any on u division, and ultimately on its dis- solution, in the assets renmining after payment of debts." A Bond is a written acknowledgment of debt under seal, and is generally made for fixed amounts, such us |1(H), 1500, |t,000; it is payable at the end of a fixed term, and has attached to it a number of coupons which specify the amount of interest due each year, half-year or quartei'. These are detached and presented for pay- ment when the interest is due. The bonds are generally secured by a mortgage or pledge of a certain portion or all of the assets of the company, the mortgage being made to trustees and containing provisions for the col- lection of the debt and protection of the bondholders in ease default is made by the corporation in the payment Cli. 0.] DKFINITIoN OK DKHKNTUKIl. 123 Hi of the bond or of llic interest thoi't'on. Bonds aro pay- able to b<'ai'('i'. bur ])i'ovision is jicneiaily made for reiristration. Avlierebv llie neuoliabilit v of the bond niav be restricted at the wish of tlie hohb-r tliereof. As bonds are not a liability nntil they are sold, they should have no account in the books of th»' company until au Jictnal sale takes place. The ('oui»ons may be detached from the lumd and sold like a picnnissory note. They are negotiable, and a hona I'ulc- ]>urchaser of them is jn-otected. Dennunl of ])aymenl of a coupon need not be made at maturity. Few business coinjtanies will have occasion to issue ])onds; but if su<'li a cctu'-se is desirable, n s]»ecial mei>t- in}>: should be called, and the ])roceedin;is should be care- fully taken and a record of them as far as possible in- serted in the mortji'ag*'. Debenture. A debentnre has been broadly detlued as any instrument issued by a comjtany which creates or acknowledf^es a debt. They are instruments in the form of a note or bond, issued jienerally in a series, recirinji" on their face that they are secured by bonds, moitjiiiges, oi' other securi- ties deposited with trustees. They are in effect bonds or notes secured b}' a pledge of bonds or other securities as collateral {a). Unless expressly restricted any com[)any having the power to borrow money, or otherwise create a debt, has the implied power to issue its bonds and debentur<'S t herefor. Debenture holders an* in the }tosition of secured creditoi's of the cor]>oration, and not in the |>osition of shareholders, and thev assume no liabililv to otln'r creditors. Treasury Stock. Although this term is not used in any of the (^'anadian Acts, its use has become ctnumon in man}' of the States of the Union. (a) Am. & Eng. Ency. of Law. \ n \ii 111 || TV 124 CAPITAL AND SHAKES OF STOCK. [Ch. 9. Where a company issues some of its shares, and places certificates rei>resenting tlieni in the liands of the treasurer, to be by him sold for the benefit of the com- pany, the stock 80 issued is called " treasury stock." Sometimes a company is or«;anized. the whole of its capital is subscribed and paid for and the proceeds in- vested in machinery, plant, etc., thus leavinj; the com- l)any without funds to carry on its operations. This state of affairs is often remedied by the shareholders donating a proportionate number of their shares to the company, to be sold to providany is simply its capihil existing in money or property or both: wliile tlmt of the sharehol*!- ers is representative, not merely of that existing; and tan^'ible cdpHnl, Itnt also of suritlus, of dividond-earninji; power, of franchise and the good-will of an established and prosperous business. The raiiitnl stock of the eompany is owned and held by the company in its corporate charactei", the capital stock of the shareholders they own and ludd in different proportions as individuals. 1'he one belon<;s to the company: the other, to tlu' cor- l)orat()rs. The franchise of the company, which may be deemed its lousiness opportunity and capacity, is the property of the company, but constitutes no ]>art or element of its cai>ital stock; while the same franchise does enter into and form jiart, and a very essential part, of the shareholders' capital sfocl: While the nomi- Jial or i)ar value of the capital stock and of the shai-e stock are the same, the actual value is often widely ditTerent. The capital stock of the com})any may be wholly in hotog:rai)h of all the corporate possessions and possi- bilities. A company also may have no surplus, but. on the contrary, a deficiency which works an imi>airment of its capital stock. Its actual value is thus less than its ' 1 1 120 I'UrcK OK SIIAItKS. [Ch. 9. noniinnl or imr value, wliih* yet \\w t^Uiarc stock, sti'cnjitlKMicd by hope of the fndir;', iuul liit' H>ipi>ort of ciMiiinjis. iiiny hv woilli its psir oi' even nioie. And tlui» 11k' Iwo lliin}j;H, the coinpaiiy ni/iihil slock and the Hluiro- lioldcrs' nipildl slorlr arc csscnnally and in cvoi'y nni- torial respect ditTcrcnt. They dillVr in their character in their ekMnents in their ownership and in I heir vsilues."*^ ',\. I'uicic OK Sharks, Whether a conijiany's shares ai-e hein«>' sold at par, that is the full value, at a |>reniiuni. or at a discount, they ai'c dhfai/s at i>ar in the company's books, and on the par value the dividend is i»aid. The lirst issue of shares at the ince])tion of a coni]»any Avill always be at l>ar; snbseciuent issues may be olVered at a i>reniiuni if the old stock is above ]>ai' in the nnirket. After the stock authorized by the charter has been takei» by sub- sci'ibers. a company's shai-es are no longer within its own control. It has none to sell, and their real value will be the investing' public's estimation of them, based upon the efticiency of the com]>any's management, the past earninjis, and an estinnite of its powei's in that direction in the future. If you desire to buy stock in a company whose shares have been all taken up, you must lind some holder willing" to sell, either by your own seek- infj; or the employment of a stock broker. What you pay for your shares is a private bargain between your- self and the holder, with which the company cannot interfere. If the company whose shares you buy is a large and important concern, like a loan company or a bank, the stock will be quoted on the Stock Exchange, and you will be guided in your purchase by the latest quotations (a). 4. Clarsks ok Stock. The capital stock of a company may be either com- mon or preferred. By Common Stock is meant that (a) Johnson's Company Book-keeping. Cli. 0.1 CLASSKS OK STorK. 127 slock Avliicli ontillcs the owners of ij (o m />/v> rnia divi- sisioii of ]>i'onaynient of dividends or inlcrcsl npon which is ex- [MH'ssly postponed until some oIImm' class of shareholders are i»aid a diviuri(Mis Stock, is meant slock issued in excess of the full amount of cajntal slock authorized by Ihe 4harrer of the conijKiny. Such stock is V(ud even thouj;!! issiu'd in j;<)od faith. liy Watered or Fictitious Stock, is meant stock which is issued as fully paid up, when, in fact, the whole* amount of the par value thereof has not l»een paid in. If an amount less than the whole face value of the stock has been paid, and the slock has been issued as full paid, then the stock is watered to t]»e extent of the deficit. Watered stock is, accordingly, stock which purports to represent, but does not represent, in good faith, money paid in to the treasury of tlu' com|»any. or money's worth actually contributed to the working capital of the concern. The issue of such stock may b(? lawful, but it is generally in fraud of the rights of some interested party, as e.g. creditors of the company, certain shareholders or classes of shareholders, or the public. I $■ (a) See Special Provisions as to Preference Sliares, for insertion in Letters Patent, post. 128 ISSUIN(i WATKllKI) OK FICTITIOUS STOCK. [Cll. 9. C. ^Iktmods of Issuing Watekkd ok FicTiTrous Stock. Tlicrc nrc tlin'o dincrent ways in wliicli watorod stock may be and is issui'd. Fiist: l\y discount in cash. Second: Hy taking jn'ojKM'ty at an ovci-valuation. Third: Hy means of an invalid stock dividend. An issne of paid n]> stock for cash, upon payment of only part of the par value of the stock, is not often made, inasmuch as the real nature of the transaction is readily discovered and easily remedied. A second method of issuing; stock as paid up when it is not actually paid up. is by its issue for i)roperty taken at an overvaluation. This method is the most frecjuently emj)loyed, the most difHcult to prove, and the least easy to remedy. The third method of issuinjj: fictitiously paid-up stock is by a wron}?ful use of the power to issue stock dividends. It seems to be jjenerally conci'ded that if the capital stock and the actual property of the company is not permanently increased to the extent of the par value of the stock distributed as a dividend, then that the issue of stock by such dividend is irreguliir, and under certain conditions fraudulent. (a) Opinions as io Watered Stocl: — There are various o]>inions as to the character of stock issued as paid up, when in fact it has not been paid for. The customary expression is that such an issue is a fraud upon the law and the shareholders; or that it is asain"5t public policy; or is a fraud on subsequent ])urchasers of the stock so issued. Other cases, and cases of high authority, hold that an issue of stock as full-paid up stock under an agreement that the full par value shall not be paid, is not necessarily a fraudulent transaction, but that under an Act such as the Ontario Companies' Act, the person taking the stock is liable on it for the full amount both to the company and its creditors, notwithstanding the agreement that it is to be considered fully paid up. Cli. 9.1 issriN(} WAri;ui:i> on FKiiTiors stock. 12\) {h} /,s' /iciilioiis iHtid-iip shirk mid/ — Is Ht«»ck void wIhmi ficliliouslv isHiK'd as ])ais(dutely void, unh'ss it Is drrlait'd to be void by conslitutional or statutory ])rovisions, but may i'lvcdvc tlic i)artl«'s concci-ned in serious liabilities, {(■) Uxprc.ssli/ forhiddcn hi) rrrhiin Arls. — Tlie Dominion Act decdares tinit "No by-law for the allotment or sale of stock at any jiiealer discount or at any less ])i'emium than what has been previously authoiized at a jjeneial meeting? * * shall be valid or acted upon until the same has been oontirmed at a jicnei-al meeting;- '' {n). This l)r(>viHi«»n is now omitted from the Ontario Contpanii's' Act, while the Quebec and I'rince Edward Island Acts exj)ressly forbid "the ])i*actice, commonly known as \vat<'rins' of stock," and i)rovide "'that all sto«k so issued shall be null and void." The (Quebec Act further recites tlmt " Every form and manner of ficti- tious capitali/ati()n of stock in any Joint Stock Com- pany, or the issuinjj; of stock which is not represented by a lef^ltiniate and necessary expenditure in the interest of such comj)any, and not represented by an amount in cash paid into the treasury of the conij>any, which has been expended for the promotion of the objects of tlie company, is probibited and all such stock shall be null and void." (d) Shareholders may complain nf issue of. — Share- holders, beinj? such when an issue of i)aid-ui) stock is ini- I>roperly made, and not assenting to or acquiescing in it, may bring suit in a court of equity to annul and set aside the whole transaction. The dissenting stock- holders' rights and remedies herein, in their scope and details, are similar to the rights and remedies of stock- holders in other cases of vlira vires acts or fraud to the injury of the company. If I K il (a) See remarks Scdgewick, J., under heading Paid-up Shares, page 140. W.8.D.M. — 9 !1 h ! > : « H i I*. 180 ISSl'E OK MININU STOCK AT A DISCOUNT. [Cll. f). An illustnitiitn of 21 , they «n'jianiy,e a company with a capital stock of fItM*,!!!)!). The amonnt of jn'ojierty actmilly i)nt in beinjj; but |!7(M)'><>. the bal- ance, oi' f:{(»,(l()(l, represents a nondnal or fictitious value with nothing: to olTset it. On the books of the new com- pany the following entries would be nuide: — Buildings and IMant .fOO.OOO Cash, etc lt»,0(H) Franchise 'M),(m) To Cai)ital Stock flOO.OOO Each shareholder's account o Stock lA'dger hav- ing been credited for his share, vi/-., |2r),(M)0, and capital sioclv having been debited the transaction is comi»lete. The dill'erence between the actual value of the property turned in by each j)artner, viz., .fl7,r)()0 and the ,f2r),()0t> in i)aid-up stock allotted him, or f7,5(l0, is usually re- garded as his share of the good-will of the business, or as a payment by way of bonus to each partner. The Franchise Account will be carried upon the books as an asset, and if, upon a dissolution or from any other cause, the shareholders pay up this difference, cash will be debited and Franchise credited for the amount. G. Issue of Stock in Minixg Companies Without Personal Liability and at a Discount. The Ontario Alining Companies Incorporation Act. cap. 197. R. S. O.. and the Quebec Mining Companies Act, G3 Vict. cap. 33, provide that the letters patent p»r Ch. 9.] CKHTIl'ICATK «>K SllAHES. 131 inni(in^ » iiiiiiiii}; coiiiiKiiiy iiiiiy, if t)ii> petition of tlic iippliciitits HO t'cipiirc, coiitiiiii a pi>o\ IhIoii that no lisibiiitv in cxcchs of tlu' aniy a by law of tlu,' company tlxin^ and declaiin^ the tale of discount, and any othei', if any, teims and conditions of isstie. ThpHo Acts also provi(h' for notice b; mj; ^iven to jtarties dealinj; with stich shaics, that they nre issued tinder the jn-ovisions of said Acts, by n>(piinnjf the words '* No personal liability" to be written or printed on the company's charter, prospectus, stocU-certitlcates, bonds, advertisements, etc.. etc. Tljcse Acts farther provide for the issue of shares of the capital stock of a company, at such rale of pre- mium or discount, and upon such terms and condilious as may be deemed advantajieous and prop«'r. 7. Ckktificatk of Sharks. A certificate of shares is from on(» ])oint of view .'i mere muniment of title, like a title deed. It is not the sliare itscdf. but evidence of the ownershij) of the share; that is to say. it is a written acknowledgmeiit by the corporation of the interest of the shareholder in the cor- porate property and franchise; it operates to transfer nothinji: from the corporation to the shai'eholder. but merely afl'ords to the latter evidence of his ri^'hts. It shonld be clearly apprehended that the cerlitlcate is not tlie share, but merely written evidence of the ownershij) of the share. Accordinjjly, it follows tlisit shares have no "ear-marks" — that on*' share cannot be distinjjuished from another share — but that it is only the certificates which are distinjjuishable one from the other by their numbers and in other Avnys. The certificate, therefore has value in itself only as evidence, and. ai)art from +lie shares which it represents, it is utterly worthless. And ['' If 132 SUIlUENDEll OF OUTSTANDING CEUTIFICATE. [Cll. 9 even as evidence it is not in every csise essential; it is merely a convenient voucher, which the shareholder should be entitled to receive if he asks for it. One element of its value to the shareholder is that it is prima facie evidence of his title. The right of every shareholder to demand and re- ceive from the company a certificate is generally con- ceded. When certificates are executed by a part only of the officers required by law to sign them, they may be void. But a certificate issued to an officer of the com- j)any who is a shareholder, although the certificate is signed by that officer, is valid. It is not, however, essen- tial to the existence of the corporation that certificates of stock shall be issued. AVithout a certificate the share- holder has a complete power to transfer his stock, to receive dividends, and to vote, and he is individually liable as a stockholder. A certificate of stock may be the subject of a legacy, a contract of sale, a pledge, or a gift. In New York making out and mailing the certificates has been held to constitute a due issuing thereof. And in Maryland, the stub of a book from which certificates have been detached is evidence of their regular issue. 8. Company Should Require a Surrender of the Outstanding Certificate. If a company permits a registry of a transfer of stock, and issues new certificates to the transferor without requiring a surrender of the old certificate, it assumes a dangerous position, and one which it is not obliged to assume. If the certificate which is not livered up is in the hands of a bona fide purchaser for value without notice, he may hold the company liable for allowing a registry of transfer to another without requiring a delivery of the certificate. It is negligence and a breach of duty on the part of the company to allow a registry without a surrender of the old certifi- cate. It generally refuses to do so, as is its duty, and is -r ff^t r<- if: Ch. 9.] AIXEGliD LOSS OF THK OLD CEllTIFICATE. 183 sustained by the law in its refusal. There are occasions, however, where the law compels the company to register the transfer without a surrender of the old certificate. When so comiielled, the conii)any cannot be held liable by the purchaser of the outstandiu}; certificate, but he must seek his remedy aj^ainst others. Such compulsory registry, excusing; the company, nuiy exist in cases of alleged loss of the old certificate, a decree of a court compelling the registry, and, under the latter, an attacli- ment or execution against the stock. 9. Alleged Loss of the Old rEUTiiicATE. While there seems to be no derisions in Canada on the subject, according t(^ the rule of nearly all tl'c States a corj)oration is not obliged to issue a new certificate of stock to the owner of an old one, which he alleges he has lost, unless such person gives to the cori»oration a suffi- cient bond of indemnity to protect it against liability in case it turns out that the old certificate was not lost, but was sold and i)assed into bona fide hands (>/). 10. Allotment of Stock. A common method (and, indeed, the almost univer sal method in this country) of " taking shares " is by subscription of the company's stolication for so many shares, which, however, must be accejtted before the applicant is bound. And this aclance is not complete by the mere entry of the api>li(an('s name in the share-book as the owner of a cei'tain number of shares, but the accejitance must be communicati'd to t'lie a[)plicant, in order to create a contract binding on him. The question is determined on the well-established prin- ciples which govern ordinary contracts. (a) See Forms of Notice of Loss and Bond of Indemnity, vont. i I, f H' ii .1 134 METHODS OF ISSUING STOCK. [Ch. 9. Directors have no power to pass a by-law directing the repeal of a by-law, passed at the annual general meeting of the company, prescribing the manner in which, upon the increase of the capital of a company, the new shares should be allotted and providing for the allotment of the shares by themselves (a). 11. Methods of Issuing Stock. There are in general three methods of issuing stock. It may be issued, first, by means of subscriptions, pay- able in cash, the subscription b g made in writing, or by acts equivalent thereto. Second, the issue may be by means of subscriptions, payable in labor, property, or both. Third, the issue may be by a stock dividend. First method: Issue by money subscription. An issue of stock by means of a subscription, payable in cash, is the most honest and safe method of issuing stock. In the absence of any agreement to the contrary, an ordinary subscription for stock is deemed a cash sub- scription, and payment in money may be enforced. The subscription contract is generally made by a writing duly signed by the subscriber. Second method: Issue for property, labor or con- struction work. The issue of stock for labor, property, construction work, or any valuable consideration otlier than money, has given rise to much controversy and litigation. In England a long line of decisions, under the Companies' Acts, has established the prinpiple that stock need not necessarily be paid for in cash, but that it may be paid for in money's worth. If the property is taken at a valuation made without fraud, the payment is as effectual and valid as though made in cash to the same amount. Performance of contract of payment in property. Subscriptions payable in property are not subject to calls, and a demand for the property must be made by (a) Stephonsou v. Yokes, 27 Ont. R. 091. Ch. 9.] PKEFEUENTIAL STOCK. 135 the company. Upon failure of the subscriber to fur- nish the property, or upon insolvency of the company, such subscriptions become payable in cash. A ])ayment of part of the subscription in cash does not waive the right of the subscriber to pay the balance in ])roperty. The stock may be issued to a contractor before his work in payment therefor has been completed. All the pro- visions of the law must be strictly complied with. Third method of issue: By stock dividend. The third method of issuing stock is by a stock dividend. It is allowable when an amount of cash or property equal to the amount of the par value of the stock so divided is added permanently to the capital stock of the cor- poration. A stock dividend can be made only when the whole of the capital stock has not been issued, or when it may be increased. The company itself can never in- crease the capital stock beyond the amount limited by legislative enactment. If an increase is desired, ap plication must be made to the authority from which its charter is derived. In England it has been a question of doubt whether stockholders can be compelled to accept a dividend of stock. 12. Preferential Stock. The various Joint Stock Acts noted below (a) give t^-ompanies power to issue preferential stock, and when this is intended it is not unusual to insert in the Letters Patent a special clause (h) defining some of the rights attached to such stock. The object of so defining these rights is to fortify the position of the liolders of such stock, for rights once unconditionally attached to these shares by the letters patent cannot be altered or in- fringed unless by the authority that granted the letters patent. (a) Dominion Act, 02-03 Vict. c. 40; Ontario Act, R. S. O. 1S97. o. mi; Quebec Act, 01 Vict. c. 30; British Columbia Act, Oi Vict. c. 44; Manitoba Act, 00 Vict. c. 3. (b) For example of Special Clause, see post, and also see further remarks under headini; Cumulative Dividend. 136 FREFEllENTTAL STOCK. [Ch. 9 1^ ■ S ff The following case arose under cap. 150, R. S. 0. 1877. The defendants, a company incorporated under the Ontario Joint Stock Companies' Letters Patent Act, R. S. O. (1877), c. 150, as amended by 41 Vict. c. 8. s. 1«;, with a capital stock of |300,000, in shares of |1,000 each, acting under section 17a of the Act, which authorized the issue of any part of the capital stock as preference shares, passed a by-law- in 1877 for the issue of $75,000 as such preference shares, which were to have prefer- ence and priority as respects dividends and otherwise as therein declared, namely: 1. '' The company guarantees eight per cent yearly to the extent of the preference stock, up to the year 1880, and over that amount (eight per cent.) the net dividends will be divided among all the shareholders pro ratay 2. '' Should the holders of preference bonds so desire, the company binds itself to take the stock back during the year 1880, at par, with interest at eight per cent, per annum, on receiving six months' notice in writing, etc." The plaintiff subscribed for and was allotted five shares, amounting to $5,000, which he paid up; but, contending that the by-law was v.Ura vires by reason of the above conditions, and the issue of shares therefore void, brought an action to recover back the money paid therefor: — Held, tiiat the first condition of the by-law was not vJIra vires, as its proper construction was, not that the interest was to be paid at all events, and so possibly out of capital, but only if there were profits out of which it could be paid; but that the second condition was ultra vires for that the Act neither expressly nor impliedly authorized the company to accept a surrender or cancel the shares, repaying the amount thereof :— Held, however, that the plaintitf could not recover, for, notwithstanding one or both of the conditions were invalid, the shares them- selves were valid, there being authority to issue prefer- ence shares, and the plaintiff having subscribed for pre- Ch. 9.] WHEN SHARES ARE NOT PAID IN CASH. 137 ference sliaros, and having got them, he became a share- holder of the company (n). i ■■ ; 13. When Shares are xot Paid ix Cash. By section 27 of the Dominion Act it is provided that all shares shall be held to be payable in cash, " unless otherwise determined by a contract duly made in writing, and filed with the Secretary of State at or be- fore the issue of such shares." The Ontario Conii)anies' Act also re«]uires that where shares have been ]»aid for by transfer of property, evidence of the said transfer Uiust be furnished the Provincial Secretary. These pro- visions have the effect of closing one avenue to fraud on the part of promoters and directors of companies incoi- I)orated thereunder. Under the former section, it is no longer permissible to accept shares in a company in order to get rid of a property acquired for the purpose of mak- ing a large profit at the expense of the comi)any, or in order to secure the custom of the company, on the understanding that they are to be paid for in goods as wanted. At least it is only permissible to do so by a regular formal contract registered with the Secretary of State, in order that any one who may be interested may inquire into the nature and terms of such contract, and govern themselves accordingly. The object of the ]>rovision broadly stated is. to avoid bogus allotments, oi', to speak more accurately, to put it out of the power of p<'rsons accepting such allotments to avoid liability by pleading an agreement between themselves and the directors, that the shares so allotted were to be paid for otherwise than in cash. On the other hand, it Avould necessarily be considered too great a restriction of the company's actions and transactions to prohibit that which might be for the benefit of all concerned, and to take awaj' from it the right which exists between indi- viduals of making an^ agreement consistent with public (a) Long V. Guclph Lunibpr Co., 31 C. P. 129. I ■I ■I m Vi i I 1^ hi M i 138 PAID-UP SHARES. [Ch. 9. policy and good morals. Thus, it might be for the inter- est of all parties that shares should be allotted to an individual or a firm in consideration that they should be I>aid for in a certain manufacturing material, for in- stance, at a certain rate, to be delivered from time to time as required by the company. This was the agreement in several cases recently reported, and which, though regarded as perfectly right and proper as between the company and the parties, was held not to relieve the latter on a winding-up from liabilty in cash to the creditors for the total amount unpaid on their shares. 14. Paid-up Shares. But where no consideration passes to the company, and the shares allotted purport to be paid-up shares, there is of course nothing to set off, and there being no contract registered, the allottee will be held liable on them. Thus, in a certain case (n), two persons in July. 18GG, signed the memorandum of association for one share each at the request of the promoter, and on the understanding that thej^ should not be called upon to pay anything in respect of them; and when they were asked to pay calls, they requested the directors to cancel the shares, and the directors did so. The direc- tors had power under the articles to cancel shares on non-payment of calls. Several years afterwards, the com- pany being ordered to be wound up, the parties and their executors (one of them being dead) were placed on the list of contributories by the liquidator, and on a con- testation, the action of the liquidator was maintained. And in the United States it has been held that the officers o^ a corporation are chargeable with fraud if they receive, in payment of stock, property at a valuation known to be in excess of its real value, and in considera- tion thereof issue paid-up certificates of stock. But if the shares are transferred, and the transferee knows (fl) Esparto Trading Co., 28 W. R. 146. ^^^ Ch. 9.] PAID-UP SHAKES. 139 nothing of the circumstances, the certificate of the com- pany that they are paid-up sliares will carry him free. Thus, under a contract jiot registered, shares in the com- pany were allotted to the person with whom the com- pany made the contract, and were duly registered by the company as such. The shares were subsequently trans- ferred for value as fully paid-up shares to a person Avho had no notice of any irregularity in their issue. On the winding up of the company, held, that the company was estojtped from denying that the shares Avere fully paid up, and that the official liquidator could not have the transferee put upon the list of contributories as a holder of shares not fully paid up. And in McCracken v. Mclntyre, decided iu the Supreme Court of Canada (a), the result was the same. In that case certain shares in a company incorporated by letters patent issued under 27 «& 28 Vict. c. 23, were allotted, by a resolution passed at a special general meeting of the shareholders, to themselves in proportion to the number of shares held by them at that time, at forty per cent, discount, deducted from their nominal value, and scrip issued for them as fully paid up. (1., under this arrangement, was allotted nine shares, which were subsequently assigned to the appellant for value as fully paid up. Appellant enquired of the secretary of the company, who also informed him that they were fully paid-up shares, and he accepted them in good faith as such, and about a year afterwards became a director in the company. The shares appeared as fully paid nj) on the certificates of transfer, whilst on each countfM'foil in the share book the amount mentioned was, — shares, " 2—1300, |G00." Held, reversing the judgnuMit of the Court of Appeal for Ontario, that a person purchasing shares in good faith, without notice, from an original shareholder as shares fully paid up, is not liable to an execution creditor of the company, whose execution has been returned nulla hona for the amount unpaid on the f ■) 1 ,v ill (a) 1 Supromo Court of C.inada. 4V9. 6- I f t I Pi 'H Mi^ uo PAID-UP SHARES. [Ch. 9. shares. But in CrhkmtMra ease (r/), held that if the transferee talve tlie shares witli notice of tlie facts, he is liable; but if he take them for value in the ordinary course of business, the burden of proving that he had notice will be on the person ur^iny; it against him. In a recent judgment (h) Sedgewick, J., stated: — "It is elementary law that no joint stoV joint stock comi)any is as a rule a trading association, and except for the limitations of its charter or of the creat- ing statute, each of its members would be liable to the uttermost farthing for evei*y obligation of the associa- tion. The h^gislature, however, gives immunity to the shareholders either in whole or in i>art in consideration of each member paying into the company's treasury a fund which in the judgment of the legislature will be sufficient protection to the public against its probable liabilities. In other words, the company on behalf of its membei's contracts for their immunity from obliga- tion in consideration of their ])roviding a fund which the legislature on behalf of and for the jirotection of the public considered sufficient for that purpose, the domi- nant and cardinal princijde being that the investor ])nr- chases immunity from liability beyond a certain limit on the terms that there shall be and remain a liability up to that limit. The })rinciple that no Joint sto of calls thereon, the payment thereof, the forfeiture of stock for non- I»ayment and the disposal of the forfeited stock, etc., etc., it contains the following i)roviso: Provided also that no by-law for the allotment or sale of stock at any jjreater discount or any less premium than that which had been previously authorized at a general meetinj?, or for the payment of the jiresident or any director, shall be valid or acted upon until the same h.'is been conftrrned at an annual meeting or a spciial general meeting (a). This ])roviso doubtless gives rise to some difliculty and at first sight would seem to lead to the conclusion that the legislature did suppose that the conipany might sell its stock at a discount without si)ecial authorization, and enacted this particular clause under the impression that such was the law. There is no other provision in the statute indicating this intention except as may be in- ferred from the power of allotment. But the word '' allotment " has no connection whatever with the amount to be paid for stock, but only with the number of shares which may be issued to this or that individual altogether irrespective of the consideration to be paid for it. So that there being no conveyance of direct power to the directors, the proviso must refer either to cases where possibly the letters patent themselves give authority to issue stock below par (on the legality of (a) It should be noted that the words in this piragrnph were also discussed by Maclennan, J. A., in re Ontario Express Co., 21 A. R. 646. 1 1^ ni i ii 142 RIGHT OF TRANSFEIl OF SHAKES. [Ch. 9. which I do not oxprcsH iiii opiTiioiO, or to casoH where the company incorj)orat('(l under the {general Act may have had special power conferred upon it by Hpciial Act, or it nuiy possibly refer to cases where before issue of stoclv a general me(?ting has determined upon the amount beyond par at which the stock should be sold, and the proviso limits the powers of the directors to issue below that amount exce[)t un(Jer the specitied conditions. Hut whatever the draftsman of this chuise or the legislature Avhich jtassed it had in view, I am perfectly satisfied that it cannot be held to authorize the directors of the com- pany to destroy its capital stock, as they have here to some extent attemi>ted to do. and thereby nullify the checks and guards which tlie legislature has wisely ])ro- vided in order to the protection of the public interest." 15. Right op Transi-^er of Shares. The right of transferring one's share and member- ship, or any portion thereof, to another, at will, is of the essence of an incorporated company as distinguished from an ordinary i)artnership. lint this " freedom of transfer " being open to abuse has, for the protection ol the public and the avoidance of fraud, invariably been placed under special restrictions, either by law or by the regulations of the companj', or both. The Imperial Act, 18()2, leaves the matter entirely in the hands of the com- panj', merely saying, that the shares may be transferred *• in manner provided by the regulations of the com- pany." The words "in manner,*" however, may be pre- sumed to refer to the form of transfer. But whatever it be, a form of some kind or other is recommended to be signed by the parties, particularly by the purchaser. The registered owner of shares in a company gave to her brokers, for the purpose of selling the shares, the certificate of ownership upon the face of which the shares were stated to be transferable on the books of the company in person or by attorney upon surrender of the certificate, and upon which Mas indorsed a trans- fer and power of attorney, signed by her, and having a u f Cll. 9.] UESTUICTIONS AS TO TKANFfCK OF SHAHFX 14IJ blsmk left for tho name of the tnmHfri'co. The hroIoM*!* improiicrly doposifod the cortiflrato hh Hecmity foi* advanocH to tlu'in witli a bank, which received it in the ordinary course of husinesH wilhont any notice of tlie owner's ri}j;hts. There was evidence at the trial that, accordinff to the usages of the stock exclianji«'s of On- tario and Quebec, such a share cerliticale so eu(h)rseil passes from liand to hand ani' a <'lnuHc ]»■■(>- liiliiting a sIiai'<'liol(]«>r. or hix cx^'cutois or atlininis(ra- toi'H, from ti'aiiHtViiiii;^ to any oiitsidiT, nnlcHH and until the NharcH have flint bcni ot!t*n'(l to (he conlinnln}? HliarclioUlnN cKln'r at i)ar or at a fair valn«*. to be IIximI by tin? parties, or aHcertainetl by jnbilrati(»n or otlier- >viHe (a). 17. J'KKCArTioxs Kksi'Ectinci Tkansi'kk of Sharks, Etc. In considerinfjf a «inestion of tranNfcr. it is in all caHcs ini]M>rtant to notice whether the contract rei'erM to jtaid-up shareH (on which no liability remains), oi* to sliares rewpectinj; Avhich the holdei* is still liable in whole or in part. For, while the transfer of i»aid np shares is comparatively unfettered, it iH not only the liyht, l)nt the duty, of the directors to refuse rej;ist ration of a transfer of unpaid shares, where the i)rop()sed transferee is a pei'son of no apparent means, and the transfer is presumably made for the jturpose of avoidinjjj liability. For this i)uri>ose then every application to rejjister a tiansfer of shares should be brou}>:ht befoi(» a rej^ular meeting of the Board of Directors, and granted or re- fused by the majority in the ordinary manner, on evid- ence of the fitness of the person ]U'op(>scd as transferee to be substituted in the place of the liolder for the shares mentioned. It is evident, moreover, that the majority, or whoever tliey are, who undertalce the responsibility of consentin}j; to the transfer, may be deceived by the parties askinjj; for the registration; and, Avitli the best intention in the world, mav order the re<.' xtra of a transfer to a totally irresponsible .. ^Yhal would be the result in such a case? 1 .ictice of t' courts would have to be loolved to for ;, answer. For. although no liabilitv is attached to tlie directors under the Imperial Statutes, the question has frequently arisen as against the trans- feror. The result of the decisions under the > Statutes (o) See Special Provision, post. i^' Ch. 0.] TUANSFEUOU MUST HAVE PAID CALLS. 14.5 is, tliiit whriM' 111*' < (ransfcror htill lu>lres<'ntation or not: but if I lind the man who desires to dispose of his shan's in favor of A. It. knows v»'ry well in his nund at that time that A. It. was an insolvent man, or a dishonest man. or an imju'oiter num. to introduce into the jtartneiship. I shall hold that the peisonal knowled;;(' on the part of the individual disjiosinji' of his shares forbade him to do what he desired to do. and that his persisting; in doin^ it, rely- inj; on the i}>:norance of the diret in view- that the one or more certificates re-issued must evenly balance the number of shares covered by the certificate surrendered. (h) Jiegisier each Sloclc Certificate as Issued. — Leave no blanks between the names and make no back enti'ies. All entries should follow consecutively. When the i)ro- l»er entries have been made, the original certificate i» cancelled by writing across the face of the certificate the word *^ cancelled," with the date of cancellation, which must be the same as the date of the transfer on the comi)any"s books. The cancelled certificate should tlien be j)asted on its original stub or filed away for future reference but never destroyed. (i) The Transfer Record. — It is necessary for the com- l)any to have a book, in the form given in the Table of Forms (a), in which transfers of stock can be made, and in which the owner of the stock or his attornev dulv ai)- pointed and authorized by him, must previously sign the projx'r form i)ersonally, or by attorney, before the shareholder can be released from his obligations to the company. The steps to be taken in the cancellation and trans- fer of stock are as follows: — 1. The ])arty desiring to transfei- stock must i)re- sent the certificate representing the stock to be trans- ferred. 2. If ])resented by the original liolder he must sign the transfer in the Transfer Record. (a) Post. IV w Cll. 9.] DEFINITIONS OF PLEDGE, MORTGAGE, LIEN. 149 3. If tlio certirteate is not presonttMl by (lie orijiinal owner then tlie power of attorney on the back of the certiticate ninst be sijjned by the said original owner in the presence of a witness. Usually the bhmlys in tlie power of attorney are not tilled np. so that when it is finally presented for transfer, the nann' of the last holder of the certificate, or the name of one of the oflicers of the company, can be tilled in as the attorney for the <)ri' to the company acknowledjiuient by the new shareholder of his new relation. L*0. DiCI-IXITIOXS OF ri.l'.nCK, ^loRTCAr.I". AXI) LlEX. A ])led.u'e may be detined to be a delivery of jtersonal property as a security for sonu' debt (tr en<;aj;ement. A mort};aji'e of personalty, on the other hand, is a sale with the condition attached, that, if the mortjiaj^or performs some act, the sale shall be void. In a jdedji-e, the title remains in the pledj^or, and the pledj;ee has a si»ecial V s i 150 HOW A ple6ge of stock arises or is made. [Ch. 9. property in the thing pledged. In a mortgage, tlie title passes to the mortgagee, subject to being revested in the mortgagor upon payment of the debt. In pledges, the thing pledged must be delivered to the pledgee. In mortgages, generally, the possession of the thing mortgaged remains with the mortgagor. A pledge differs also from a lien. A i)ledge, by \m- plication, gives the pledgee a power to sell on due notice, in case the debt is not paid on maturity, while a lien gives merely the power of detention until the debt is paid. 21. How A PLi:i)r,K oi- Stock Arisks or is Madi:. A pledge of stock is generally made by a delivery of the certificates of stock indorsed in blank to the pledgee, and a memorandum in writing to the effect that the stock is held in pledge is generally signed and given to the pledgor, and a copy thereof attached to the certi- ficates of stock (a). 22. Liability of Members ox Stock. Under the Canadian Acts the principle of liability " limited by shares " has been adopted i)urely and simply, and this is the only form of company which can be created under these Acts. And the reason is probably this. It is by far the simplest form, the best known, and the most readilv understood. And where no alter- native is presented no doubt can exist as to the extent to which the members in any company formed under it are liable. If the shares of any holder are fully paid up he bears no liability whatever in respect thereof for the affairs of the company. Neither the directors nor all the other shai'eholders combined, in corjtorate meeting asseuibled or otherwise, can comjjel a dissenting shareholder, whose stock i:^ fully i)aid up, to i)ay any more mon«'y into the company or subject him to further liability on his stock. (a) Soo Form of l*U'd},'(', tiont. ■iu rU €ll. 9.] LIABILITY OF MEMBERS ON STOCK. 151 He is, as far at least as the outside Avorld is con- ternod, as though ho wore a i)orfect strauger to it. A lueniber to-day aud iuterested. it may be to the exteut of tiiousauds of dolhirs, iu its jirosperity, entitled to talce part in its meetings and intluence its aftairs, to-morrow he may liave severed all connection with it, and care not one straw whetlier it succeeds or fails. And while the shares remain in his hands his onlv liability in respect of them is, tiiat he may lose some portion of what he may have paid for them, a portion generally determined by the affairs of the company and the "condition of the market." This liability to loss, however, is always set off by a corresponding chiince of gain, of the balance of which the holder (or some one for him) may judge and may govern himself accordingly. His liability, in short. Is that of the holder of nny other merchantable commodity, which may fall or rise in value according to the market, and no other. lUit with the holder of un]>aid shares The case is somewhat dilferent. He is still liable in respect of them to the amount which has not been i)aid in, and is. i\A will be seen hereafter, subject to an action at law for such amount, either at the suit of the company or its creditors. And this liability, to pay, is always enforce- able, subject only to th«' formality on the part of the company to make what are known as ''calls" for the whole or a part of that which remains due. The crepose file c(»ni|tany bad forfeited its cliarter by its acts, and tlie forfeiture had been ]»ronounced. would that relieve tlie .-diareliolder, even tlioujili a non- (•(Misentinjij niendter to tlie acts in (piestion. from bis liability? It does n<>t api»ear tbat that could be. either. Indeed. suany. It is a liability to contribute to the assets of the coni]>any. or, in other words, to the security which the creditors have for their claims. The shareholder is a <>>mrantor of the undertaking;' of the com- pany to the amount unpaid on liis shai-es. And if, in ( onsecpience of irrejiularities on the jtai-t of a majority of the company, oi* i-ather of a nujjority of the memb<'rs present at any rej>ular meeting, he could reimdiate his liability, then all those who did not consent to such irrej;ularities miyht do so, and tin* creditors would lind a preat portion — perhajis the <;i'eatest ]>ortion — of their security suddenly wiped out. So that the most a jdea of forfeiture could elTect would be to defeat the ri^ht of the company to such action (which it would undoubtedly Cli. 9.] loo REMEDIES FOU NON-PAYMENT OF SHARES. thoni. And JIM sncli power, if it exist at all, can exist only for llu' benefit of the eonipany, any aeceptance of a tiuri'endei' of shares not wholly paid nj* wonld simply he a matter of bjirjjain as for a transfer between two in- aid so much on your shares, and at the present market value they are worth so much; we will accei)t your shares for the balance due on them; [or uj* or down, iis the case may be], and j,niai'antee you against any further liability in respect of them.'' That this is simply dealing in its own shares is therefore evident, and may be still further inferred from Ihis. that to accejtt a suri'ender of shares and retain them in their hands would be reducinjj^ the capital of the comjtany, which it has no power to do. ex(;ept in the manner provided for in the Act. They would therefore have to be re-issued to other parti«'s on such terms as they could, which would amount, as be- fore stated, to a mere tradinjj^ in its own shares. Without an express power in the letters patent or charter of the iL'ompany a holder of un])iud shares can not be relieved of liability by the company. The liabilit}- of the holder may be terminated also bv u hona fide sale and transfer of his pro])erty in the shares to another, i)rovided, as has been pointed out, that such other is accei)led by the comi)any, and an entry of the transaction made in the books of the company before a windinjif up is commenced. I)ut as long as a person's name appears upon the l)ooks of the company as a sharc- liolder, the i)resunii)tion is that he is owner of the stock, and in an action to enforce i>ayment of a ciili. Ihe burden of proof is ui)on him to show that he is not a shareholder. 28. TiiK \\\Rious Rkmkducs for Xox-rAVMiixT OF Shares. When a subscriber fails or refuses to i)ay for the shares of stock for which he has subscribed, the com- pany generally has several methods of enforcing the contract. II 150 KOUI-El'irUK OF SHAKES. [Ch. «.). First, llicrc is the (•oiuinoii-iaw net ion 1o collect llii' subscript ion as a «]»'l»t. Tliis icnicdv ahvavs exists. S('c()n(l, the c(»nii>any may sue on llie subsciiption, ob- tain judgment, and then ju-oc^ed to sell the stitcU under an execution h'vied to colU'ct tlu^ j\id;;nieiit. Tliird, the tonipany may luin;; an action at hnv foi* breacii of <-on- Iract, tlie measure of damajics lieinj; the diilerenct' between the vabie oC tlie st(Hk at the price whicii the subscriliei" was to j>ay and tlie nuirlvet value at Ihe date of the refusal to i»ay. A fourth and very impcu-tant remedy is that of forfeiture. It is elTected in one of two ways: the f(u-feit»ire nuiy be by a sti-ict foieclosure of the shareholder's stock, that is, the lakiu}; of his stock by the company itself; or it may be by a public sale of the? sto<*k tor non-payment of the subscription. The i-eiiu'dy by public sale of stock is by statutory authority only. 2!>. FoKKiiiTURE OF Sharks. The j»owei's jjiven the «lirectors as to forfeiture of shares for non-payment of calls is intended to be exer- cised only when the circumstances of the sharehohlers render it expedient in the interests of the company and cannot be emitloyed for the benefit of the shareholder {(t). The power to forfeit shares, by which no chanji'e is eti'ected in the liability of the holder, must be reji'arded as totally distinct from that of acce])tin). The subscriber is entitled to full knowled<>i' of the fact that, unless he i>ays ui* within a s]»ecitiod time, he will lose his stock. The re(iuirement» of the statute or charter, with resiiect to the contents of ((/) liJt (".111. S. C. 11. 239. (&) Sec Form, past. ■' i^ Cli. 9.] TKNDKll HKI'OIIK KOlU'KITUHK. I'U the notice, iilid the Icii^tli of tiliio wliirli is to (■]tl|»s*> lM't\v«'<'ii Hie iKilicc iind the forfVil hit, iinisl all In* ntrictly 4-<>iii|>li('(l with. It is ii(<(ti(lin<;ly held tiint llic notice )iuisf stiitt> coi'i-cctly the iiinoiiiil (liic. for iion-piiyiiiciit of Avliicli tlu' stociv is to lie forfeited. Tlie time, also, within which payment is to lie made must lie accurately stated, and also the jihu-e where the sale is to lie made. The mode of jiivinj;- notice of a cont<'mplated forfeiture of stock is j,M'm'i'ally specith'd in the statute authori/inji' the forfeiture. .'51. Ti';\i)I':k. I'.v S'rocKiioi.Di-.N. lii:i-()Ri-: F()K|-i;i nur.. Wher<' the amount due on a suliscrijition. for non- payment of which a foi'feitnre is about to take place, is tendered to the jirojiei' otlicer of the company at any time before the sale actually takes place, the forfeiture is not valid. This rule is based on justice, and, while ]irote<-tinj;' the company and the ])ublic. it relieves the shareholder from the hardship of a harsh and snmmaiy remedy. ',V2. POWKU Ol' A CoMl'AXV TO AcnVIKI-. AM) IIolJ) ItS Own Stock. The f'amidian Acts jirovid*' for the forfeiture by the i'ompany of shares for non-payment of calls. These rihares then become the jiropei-ty of the comiiany and mav be disiiosed of as. bv bv-law or otherwise, the com- panv mav ordain. It has been held in the United States that companies may purchase, hold and sell shares of their own stock jirovided ther<* is no charter or statutory jiidhibition. and ]irovided fni'tlier, that they act in ,i;ood faith and with- ont intent to injure or injury to the credit ois. In the case of Turrler v. State Co.. .")<; N. 11. l!t;s, the court said, " T am not jirejiared to say that under the laws of this state a solvent comjiany may not, in good faitli, and for the pur})ose of securing; ]iayment of a (h'bt auaiust a sharehidder, which mi'ilit not otherwise be 158 IMI'UOPEU CANCELLATION' OF STany, the subscrii»tion list beiny headed: '* We subscribe for and a^ree to take the number of shares of the capital stock of the II. company set opposite our signatures, and to pay on account thereof 50 per cent, to the secretary- treasurer of the company in quarterly ])ayments of 12 i per cent, each, of the amounts subscribed for by us resjK'ctively, tlie first of such payments to be made on Februaiv 1st, 1882." C, was at the lirst shareholders' meeting' elected a director, and remained so until the final winding up of the company. One of the by-laws of the comi)any provided for the caljiiig of the second 50 per cent, of the stock subscribed at any time after November 1st, 1882, on thirty days' notice. In August, 188;5, the president of the company arranged with C. that he should sign for eighty shares on the terms of a new stock-book which liad been opened, and that C s original stock was to be treated as cancelled. C. accordingly signed the new book. This arrange- ment with C. was never communicated to the share- holders of the company. In January, 1884, a winding-up (n) Ontario Conipfiiiics Act, see. 36. (6) Copp's Case, 10 O. R. 41)7. Cl». 9.] CALLS, 150 ordci" was iniuh'. and (\ was sultsi'<|U('iitl.v drclarcd a (•(mtiilmloi-y to llu' aiiKnint of H!(> sliaiTs. ('. now ap- pealed, claiming; to he a lontiiltutorv only to the amount of 80 shares, on the ^i-ound that the anany;einent of Auj^ust, ISH'A, was a valid coniproniise, entered into with him because he siihscrihed oi'i;>;inally on the undeistand- inpr, (1st) (hat the company was not to ^^o into oi»eration ln'fope all stock was subscribed I'oi-; ii'ml) that only oO pel" cent, of his subscription would have to bo jtaid: — Held, that whether directors have inhei-ent power to compromise with sJiarehohlers or not, there was nolhin;.;- to support the compromise here set up. As to (Isl) C.'s actions as directnr|)<)S(' not >van*aiit('d by tlu' constitution of llic loni- pany, tliat is to say, for sonictliinj;- not within the objects of the <()ni])any, a«, for instance, lo ]»urchas('. stock in other <'oni[)anies where the ])()wer to invest in the slock of other c(»ni]»anies is denied by the ,\ct under which ir is formed, or by its letters ]»atent. .Vui- if it be shown that the call has been made for an illei^al })uri»ose, such call cannot be enforced. A call is not irregular because prospective, that is to say, because nuide before the money was actually reiiuired, but when it was apparent that it would be required about the time called for. {I) lliitr nnidc. — A <-all is made by the directors pas.s- in^- a it'solution " That a any"s office, sticeT, <'tc., on the day of , 19 , be and the same is hereby made." The by-laws of the com]>any should pi-escribe whether such resolution can be passed at an ordinary meetinj;' of the directors, or whether a meeting should be called for the puri)ose. This res(dution should be dulv entered in the minutes of the meetinj;'. {m)('ay money, is a j»romise to pay; but, by imi>lication of law, the payment is to be only at such times, and in such ])art jiayments, as may be desij>nated by the cori»oi'ate au- thorities in a fornuil declaration known as a ''call."" In other Avords, the subscription is a debt j)ayable at a futui-e time. The time when it shall be paid is indefinite until fixed by a call. {^>)^M^vn a call is luinrcrssai-i/. — If, however, a sub- scription contains a promise to jiay upon a certain day, no call is necessar\ ; but the subscriber is bound to pay, at all events, upon the day named. (o) Xolice of Call. — The lenjith of notice required to {)e given of a call is generally provided for bv the bv-laws of I J i Ch. 9.] CAI-LS. 161 1lu* couipsiny. but tlic call itself dntcs fi'oin llic jjassinj; of the n'soliitioii. and not from Ilic time the notice is {iiven oi' received. And if a ceitain time must elapse iM'tween two successive calls, that lime must be recUon<'d <'xclus've of the day on which the resolutions were l)assed. Whei-e the cluifter of a comj»an\- |>i'oviulation of interest or ai-rears. whicli iMins at llie lejial rate of six per cent. p( '■ annum fi'om the day a]»pointed for ]»ayment. (q) Calls niKsl he iniji'irlial (iiid iniif'inii. — A call can- not be made so as 1o affect a jtart only of the subscribers. It must be madt' on all alike, or it will be void. The Courts will not allow Ihe directors ot a coiupany so to ])r()ceed as to retjuii-e some stockholders to ]>ay calls, and not to iiMpiii-e others 1o do the same. Any such Jlttempt will be promptly set aside and i-ectified. (r)\V]icii III) call liiis hrni iiunlr. — I'nder ordinary cir- cumstances there is no liability to ]tay for shares until a (all is made, and notice thereof jiiven to the shareholder, and until that time 1i:e Statute of I. imitations does i\ot bejiin to run against tne company. Thei'efore persons named in the charter issued in ISSO as shai-eholders were in IS'Ol held liable to jiay the amount of their shaics. no formal call havinj^- in the meantime been made, llaji- jjert P.ros. Mfff. To.. Teaker and Kunioiis" Case. iO .\. R. 582. Ui) Kdss v. Miicliiir, S O. U. IIS. W.S.D.M. II ' V!' If In n CHAPTER X. DIVIDEXDHi. 1. 2. 3. 9. RkgulationsResi'ecting. Nature of. Cannot he Eneokced Until Declaked. Dividend wiitiol't For- mal Declaration. Klnds oe Dividends. jjlscretion ok dluec- lORS AS TO DeCJ.ARINO Dividends. To Whom tiieCompanv is TO Pay THE Dividend. To Whom the Dividend Belcxnos. Dividends Must be luH'AL AND WITHOUT PUEFERENCE. 10. When Declared is a Dert Due AjisoLuiEuv TO THE Shareholder. 11. Right ^m C< .i-anv to Ai'i'Lv Jmmdends to iHE Payment of DeRTS J)l'E TO IT I'.V itie Shaijeholder 12. Rights of Corrouate Creditors. ih. cu.mulative ]';!vide.';d. ] 4-. Preference as i u Uari- TAL. 15. Entries upon Declara- tion of Dividend. 1. Regulations Kespectixg Dividends. The Eujilisli Act leavt'S tin- (lucsiiou of divideiids (Mitirt'ly to tlu' icj; illations ot the coiiiiKiiiy. •' The rijiht." says Thi'iiij,', " of a nhareholder to dividends is, of course, governed by the rejiuhitions of the coniin^iny." It is so in ertecl by all Canadian Acts; that its to say, the right io. jate and time of payment, with all other ques-tious imidcnt ihei-eto, ai'e nialtevs fntirt'lv within the com- pany's control. The Aets impose a heavy liability upon directors who pay divi<'i'ly belongs lo iuid cjin be divided .uii()n,n' tiir shari'lioidcis. is (he fund crciUed liv the luM profits of ilui company. It is foi- tliis and tliis only tlicv have invested in its sliaros. and if. conti'ai'y to their ix'peclations. tluM-c arc no jtrotits for a time then they must wait until there are; or if there is no reasonahh' expectation of their beinj; any, then llie (•om])any sliouUl be wound uj». and after the creditors liave all been ]»aid. the sliareholders may divide the surplus assets amonj; theujselves. Ibit, havinst. does not rendei* the bahince sheet delusive and fraudulent. A case known as St<'infers. which appears to be a leading; one on tln> (question of dividends, was that of a company formed f(U' blockade runninji', where the articles ]>rovided that no dividends should be payable except out of the profits ai-isinj;- from the business of the company, etc., and it was decided that a dividend ]>aid on a balance sheet in which the shijis enpijied in the trade and other risks were bona fide estimated at the full nominal value, must be considered to have been paid out of jirollts, althoujili the company had actually to borrow money to pay it (//). ?>. Drtdexds Caxxot re Exforced TTxtil Dkceakei). The declaration of dividends is part of the internal manaji'ement of the company, which is p.ovc'rned in its ultimate arranjicment by the will of a majority of the shareholders. And, therefore, it has l)een said that " till a dividend is declared, a shar«'holder has no lej>al title, nor even an e(]uitable ri^ht thereto, which can be en- forced by suit." 4. DiviDi^xi) — ^WiTnoi'T Formal Declaratiox. A division of jtroflts without the formality of declar- injj a dividend is e(]uivalent to a dividend. A division of the i>rofits is a dividend even thou}>h not called such and not considered such by \ho diicctors and share- holders. n. Kinds of 1)i\'idi:ni)S. A company may make four kiiuls of dividends, vi/., a dividend payable in cash, ni slock, in bonds or scrij*. or in ]>i'operty. (n) L. R. 4 Ch. 475. Ch. 10.] IHSCIUITIOX AS TO DKCLAIUNG DIVIDKNDS. Kjo In a scrip (liridcnd, ccrtiflcatoR fjiviiij;' llic lioldci's (MM'tnin rifi'hls siiocitit'd in tlit* cei'lifii'atc iisrlf jirc issued. A dividend of this <'liiii'{icter is usually declared whvn the eouipauy has itrotits not in the shajie of money but in olhei- foinis of ju-operty, and the company wishes to anticijiale the time when the ju-operty may !»«' turned into cash. .1 jtrn/H-rh/ (liriiicnd opcurs whert' a company sells its )U'o]>erty to another company, takinji' in ]»ayment tln-re- for the stocks or bojids of the jMirchasin*;- comjiany. and then distributes them anu)nj;' its shareholdei'S. .1 slorli- iJiridriid, as the name imports, is a dividend of the stock of the company. Such a ro, .'rty equivalent in value to the full jtar value of the slock disti-ibuted as a (iiviro]>rotit,s earned. It is also nuule when the corpoi-ato i)lant has increased in value, and it seems better to issue new stock to repr<'- sent the excess of value than lo sell the increase and declare a cash dividend. In this country these divi- dends ai-e frecpieutly made, aud are constantly sustained by the courts. The sha'cholders. havinji' voted to de- clare such a dividend, may, at any time before the certi- ficates are issued, reconsidei- the mailer and revoke ihe dividend. I'rc.'ei'i-ed shareliohb'rs ai'- entitled lo sli;ire equally with I he comuiou shareholders in the distribution of stock by a stock dividend. i-s have exercised fair exercise of their discretion, invest ju'otits to exteud .md develo]» the business, or for the j»aynient of ]>robable future indebtedness, tliough it is not yet due. The free exercise of their discretion cannot bc' interfered with by the contracts of ])ronioters or erson in whose nanu' the stock stands regislei-ed u]»on the corjtorate stock-book. It may do s(» without enfjuiring whether he has transferred the stock, and without recpiiring the production of the certificate. Cli. 10.] TO WHOM thl; diviuk.nd iii:LoN(is. liJ7 Morcovt'i-, it is a well-si'tllc*! i-ulo (hat the (•()nii)aii\ is ]»r(»t('(lf(l in |»avinji' (liviiiciuls 1<> a recorded sliarc holdei', altliouu'li lie limy have Iranstericd his siiares. l>iit alter notice o! a transici' the coni|iaiiy may i»ay the dividend to the transleroe, althoiiyii no i'e<;istry has been made. The ri^lit to dividends does not, however, depend upon the issue of the certilicale, and tlie owner of shar<'s may chiim his dividends tlioii<;li no certilicate lias ever been issued by the coinj»any. Tlie lieirs of a sliare- holth'i' must, in order to entitle (liemselves to dividends, 'procure a transfer of their ancestor's shares Into tlieir own names on the corporate boolvs. Moreover, (he com- ])any is jirotected if it pay dividends to the administra- tor Avitliotit notice of a transfer by liim. Dividends on stock lield by a married woman must be jiaid acccu'diiif;' to (lie law of the domicile of the any, and not according to the law of the domicile of the married woman. A husband bv collect iii"- dividends on his wif(.''s shares does not thereby reduce the stock to possession. Even though the coniiiany closes its transfer-book several days before a dividend is declared, nevertheless those are entitled to the dividend who apply for registry on or before the day of the declaration of the dividend. 8. To Whom the Dixtdexd Belongs. s e As between the vendor and vendee of shares of stock, it is a settled rule that the vendee is entitled to all the dividends on the stock which are declared after the sale of the stock. Even though the transfer has not been recorded, the transferee has a right to the dividends as against the transferor. Tlie law. moreover, refuses to investigate the question when the dividend was earned. In contemplation of law the net protils are earned at the instant the dividend is deilared. j»ut of course any agreement between vendor and vendee, modifying or 1' m H 1! fr ^ ■. in' \\ \;r ■ i 16r<'vioiis to that event f<» the administrator. \Vher<' stock is boujiht deliverable at the seller's option, the dividends declared between the day of the purchase and the delivery beloiij;- to tli(» purchaser. So also an offer to sell shares, which is subsin«f the rjipihil stork will be iin- liiiircd, or that nil the surplus ciu-iiinfis hiivc 1 n cither l)aid out its dividends or invested in perniiin«'nt improve- ments. 10. A I)i\ii)i:.\i) Wiii:x Dia i..\ri:i) is a Dkkt I)i"K Aiiso- ].rTi:i.\' TO 'nil-: Siiakiukh.diiu. When ii dividend out of the enrninns of the comiKiny hiis lieen rejiiihirly deehired inid is due. the ri<:!il to it becomes immediiilely the individual piopei-ty of the shareholdei'. 11. Kkiiit (>i- Till'. ("().\Il■A^■^• to A^l'l.^■ I)i\ idi'.nds io tiii-: l^^^■.\Il•:^■T oi- Diiins l)ri-: td it r.v Tin-; SharilIioldiik. It is well settled that if, at the time a dividend becomes |»ayable. the sharehohh-r owes the company any debt, the dividend due to that shareholder may be ap- ]»lied in liquidation of tlie inch'btedness; and if the coiu- jiany is sueheld where tlie rejiistered sharehohh'r has s(»ld and trans- fei'red his certificate of stock before the dividend is declared. 12. Rights of Coki-okatk Cki-.ditoks. Where divich'uds aic illej>ally ]>aid from the capital, or. what anuuints to the same thineeu a fraudulent distribution of corjiorate ])ro|»erty before the payment of debts, a court of e(|uity will, at the in- stance of defrauded corporate ci-<'ditors. follow the fuiul into the hands of the shareholders and retpiire its ap- [>lication to the payment of those debts. In all such cases tlie directr('SHl,v ooiifcri'cd by (lie cliiiilcr ('/) «»r by stalulc, Jiiid il is proposed lo issue jd-erereiice sluires, it sliould be detennilUMl wiietlier a dividend ]»iiyable lo tlieiii is lo be ciiimilalive {i.e., wlieliief llie deficiency ol' jd'ofils in any one year is lo be made jiood out oi" the ]»i'olils of subseipienl years), or is lo be non-cnniulalive {i.e., conlinjienl as rt'j'ards each year ujton the jtrofils of that year huviu}; been sntlicient to ])ay a dividend for sucli year), and llio fact shonhl be stated in the contract and certilicates of such stock when issued. If tlio dividend is to be non-cuniulat ive. tlie chiuse should say that " tlie juclerence shares are to confei' the rip,lit to receive out of tiie protits of eacli year a prefer- ential dividend for such year " at the sj)ecilied rate ])er cent.; or the clause nuiy declare that the profits of each year available for dividend are to be ai)plied tirst to the payment of a dividend for such year on the preference shares at a specified late and that the suri>lus shall be applicable to dividend on the other shai-es. All that is required is that it should appear that the preferential dividend for each year is to come only out of the profits of that particular year. Dividends even on preference .shares can be i)aid only out of profits actually earned. Preference shares are sometimes given the right to participate in surplus profits also. 14. Preference as to Capital. Although the right of a preference shareholder is usually confined to a preferential dividend, preferential rights as to capital may be and often are attached to preference shai'es. Where this is desired, it should be stated that the preference shareholdei's are to be entitled not only to a preferenti.il dividend but to priority as regards capital in the winding up. Then the In ■, HI \W ir. (a) Soc " Special Provisions '' as (o Preference Shares, post. <'li. 10.] KNTItlKS ri'ON t)i:<'I,.\l!.\l'|uN- OK l»l VI I )I;N'I). 171 <'Jij>itJil |»iii made. As before stated, a 'o. 1. I'.HMI, should then be opened and i-eniain open until its whole amount bo paid to tlie shai'eholders. A separate account should be oi>ened with each divid<'nd declared, and it should be known by its nuni- bor and year. This transaction leaves a balance to the credit of Surplus account of .i?4.0 )0 which may be allowed to stand as a Keserve Fund. e IMAGE EVALUATION TEST TARGET (MT-3) 1.0 I.I IIIM IM IIIIIU |||m J 15 12.0 1.8 1.25 1.4 1.6 -• 6" — ► % ^ ^^m m c*l w 4/ Photographic Sciences Corporation n>^ ^\ 4^ :\ \ ^9) V & #^ \y .^ ^ 23 WEST MAIN STREET WEBSTER, NY. 14580 (716) 872.450J ^r^. s* V % Ua >> CHAPTER XI. THE STIAREHOLDEK'S RELATION TOWARDS THE COMl»ANY, AND OTHER SHAREHOLDERS, AND ins LIARILITV TO CORPORATE CREDI- TORS Ul'ON UNPAID SUBSCRIPTIONS. 1. Relation of Sh a ueiiold- Eus Towards tjie Company. 2. The 'Expulsion of .SHA1«EH01-DKI{S. 3. In the Untied States Unpaid Subsciih'tions a Tiiusr Fund fok the Benefit of CitEDirous. 4. Unpaid Suhscuiptions CAN liE UEACHED ONLY a ft eh j u dom e nt A(;ainst the Company AND Execution Re- turned Unsatisfild. 6. 8. Shakeholdehs Relation TOWARDS each OIIIER. Liability of Share- HOLDEIIS ON ArANDON- >IE.NT OF Corporate Enterprise. J.,IARILITY WHEUE StOCK HAS REEN Sold at a Dlscount. Debenture h o l d e r s Creditors not Share- holders. 1. Relation of SiiAKEnoLDERS Towards the Company. A conipauY nuiy contract AYitli its shari'lioldcrs to i\w sanio extent and in the same manner that it may with any (Mher persons. A sharehohler, as a creditor of the company, nniy obtain secnrity for his debt in exchision of other creditors. A sharehohler lias no lej^al title to the property or profits of the company nnlil a dividend is declared, or :i division made on tlie dissolution of the corporation. He may sue the company or be sued by it. Moreover, he has a direct interest in the com])any, and at times may take tlie ]>art of the company in prosecuting; or defendinj^ its suits. Cll. 11. J UNPAID SUHfSCKirriONS A TUUST FUNI>. 2. TlIK KXI'IT.SIOX OK SlIAKICIIor.DKKS, 173 Tho law forbids the diicctors or shareholders of a f'OiHItany haviii}:; a cajjital stork from dcjM'ivinj;' a sharc- lioldcr of his ri};hts as suital stock of a comjiany is the a^ui-(>oat(' of the ]»ai' valu<» of all the shares into which the cajtital is divided upon the in<'or|)oration; it is the fund or rt'source with which the com]>any is enabled 1o act and ti-ansacts its business, and upon the faith of which ])ersons j^ive credit to the company and Immmmmc • orporate creditors. The juiblic. in dealiu}; with a com- ]iany. has the riy business losses. The public has a ri^iit also to as- sume that the ro- tect c(M'i>orate creditors, and in the T'nited States it is a well-setth'd doctrine that cajtital stock, and es])ecially un])aid subscriptions to the caiutal stock, constitute a ti'ust fund for th«' lienefit of the creditors of the com- pany. There are thi'<*e methods by which slmreholdcis seek to avoid theii' liability to coi-porate cn'ditors; first. by a cancellation or witlidrawal fiom the contract; 174 HOW rXPAlD SUnsCUHTlONS KEACHED. [Cll. 11. second, by a release from tlieii- obligation to ]>ay the fall par value of the stock; third, by a transfer of the stock. Tn each of these cases, however, a court of equity does its utmost to protect the corporate creditors, and a rijiid scrutiny will be made in the interest of creditors into every transaction o" such a nature, thou}?h the directors are not trustees for the creditors of the company. 4. Unpaid Subscriptions Can tie Reached only After Judgment Against the Company and Execution Returned Unsatisfied. The unj)aid balances of subscription are not the primary or rejrular fund for the payment of corporate debts. Credit is jiiven to the company, not to the share- liolders; and it is the natural order of business that the creditors of the company are to be paid by the company from funds in the corporate treasury. Ordinarily, cor- porate creditors have no knowledge or concern about tlu' *"ubscription list, and unpaid (u* partially paid subscrip- tions are a matter entirely between the company and th<> subscribers. So long; as the company meets its obli}j;a- tions in the ordinary course of business, coiporate credi- tors have no need to concern themselves about unpaid subscri|>tions to the stock. But when the company is in default and embarrassed, or for any reason fails to pay its debts, then its creditors have rights with reference to such unpaid subscriptions. They then have the right to know whether all the subscriptions for stock have been fully paid in, and, if not. they have the right to compel such payment. It accordingly becomes im])ortant to know at what point, in their efforts to collect what is due them, cor- Ttorate creditors nuiy cease to pursue the company and ^u'oceed directly against its delinquent members. The well-established rule upon this point is that a corporate creditor's suit to enforce payment of unpaid subscrij)- tions can be properly brought only after a judgment at law has been obtained against the company and an Cll. 11.] .SIIAUEII«)LbEU.S KKLATION TO EACH <»THEI{. 175 execution returned unsatisfied. This rule is of such im- portance tliat, by statute, a creditor's ri^'ht to i)roceed against a stockiiolder on his unpaid subscription is allowed only after the remedy against the company itself has been exhausted. By this is meant that judgment shall have been duly recovered against the company, anorate creditor's primary resource, even wliere the liability of the individual share- holder is declared to be primary, like that of an original contractor or i»artner. When a company is ordered to be Avound up, all proceedingw by creditors may be stayed. Although an incori>orated company has ceased to do business and to elect directors for carrying it on, the creditors do not cease thereby to have the right to ex- ecute their judgments against the comi)any (//). 5. Shareholders Kelatiox Towards Each Other. The shareholders, as sliareholders merely and not as directors or officers, do not occupy any fiduciary relation either towards the company or towards each other. They may deal with the company and w ith each other as per- fect strangers. A recent judgment says " The holders of a majority of the shares nuiy not use their power to obtain advantages at the expense of the minority; and when that is done equity will interfere to restrain the wrongful acts. All must be permitted to share equally in the benefits; and the law requires, both from the officers of the company and the majority of shareholders, tlie utmost good faith in the management and control of the corporate business and property. But between themselves the shareholders owe no duty to each other. In the purchase and control of his stock or any of the (a) Hughes V. LaloiuU'. C. K. 1889, 18 Revue Legale, 205. 1^ /-» I-IAUILITY OF SHAUEHOLDEUS. [Ch. 11. m corporate oblijfations, each sliarelioldor acts for bim- HvW, and ho is in no sense a trustee for the others.'" g. llai'.ii.itv of sliakeholdkus ox auaxdoxment of Corporate Enterprise. AVliere tlie sharehohlers of a company have volun- tarily abandoned the enterprise or have decided that its further cariyiufj; on is ini]>ossibU'. it is the duty of the company to tail in wliatever capital may be niM-essary to settle its alTairs. and eacii shareholder will be liable to contiibute his prop(Ution of the unpaid capital. 7. LiAiiiLiTV Where Stock has p.eex Sold at a I)!SC'f)l'XT. The sale of stock in a <'it- j'oiiATi: Officku Intfu- FJSTFl) IN'CoNSTUrcrioX C(>MI'ANY AND SFCUKT G. TsTo. 'i. FltAUDSltV PUO.MOTFKSON THE CoMI'ANY. 4. FUAUDS HY PuoMOTFItS ON THE SlIAKEHoLDEU. 0. Relations hetween the J)lUECT()US AND THE Co.MI'ANV. (). PrucHAsEs nv Dikectous FKOM THE CoMl'ANY AND Purchases at Foue- cLosi'UF Sales. 7. Loans f.v the ])ii{E< toks TO I HE Co.MI'ANV, MoUT- GA(!ES HY THE CoMl'ANY TO DiKECTOUS, AND THE RHiHi" OF A Company — Solvent ok Insolvent — to (JIVE a MoUTCACiE oU A.SSKiNMENT OF ITS Pkoi'Euiy to a Diuec- Tolt INOUDEirropKEFEK THE Payment of his J)E|{T. iS. FUAIDS HY A Ma.IoIUTY OF THE SlIAIlEllOLDEItS UI'ON the MiNoltlTY. !>. DlltECTOHS Ml'ST rsE ol{- DINAUV CaKF. AND DlLI- (JENCE IN THE MaNAOE- .MENToF THE CoMI'ANY AND THE TltANSAi TloN OF ITS Bl SINESS. 10. E.xcEssiVE Increases of Salauy. 11. SunscKiHEKs Remedies WIIFltE SCHSCHII'TIONS HAVE 15EEN OlMAINEI) 1«Y FltAl'DrLENrPiEl'KE- SEN TAIIoNS. 12. FRAUDULENT TlJANSFEll OF Shakes. 13. LiAKiLiTY OF Estate of DeceasedShakeholdek. 14. Kkmitof Shakeholdek TOSETt.>FF])EliT. KS. its ire lOV 1. Classes of Siiaukiioldkks' Wkoxcs. Shareholdt'i's' wronjis, jiiising from a bron -li of trust bv directors, a inajoritv of the sharclioldci's or third j)orsoiiK, are divisible into tliroc rlass«'s. Thcv arc. lirst. fraudulont acts; second, nllni riirs acts: third, ncfjli- gcuco of corporate directors. There is another chiss of {ii'it'vance — that of inter- nal dissensions in the company and dissatisfaction with its policy and acts. These, however, relate to matters W.S.D.M— 12 178 KKAUDS UY I'KO.MOTKUS ON THE COMPANV, [Ch. li iiilra vires of tlit* dircctoiH or nuijorily of the sliari'- lioklcr«. 'riu' law {^ivcn no I'diicdy for such dissenssioUH, since llio sliiircliohlci- luis tin* coijmujiIc elections as a icniedy, and since (lie majoiily are lo rule so lonji as they do so without fraud and within the powers of the company. 2. DiUKCToR okOtiikr CoKi'uKATi': OriTCKK Inti:ki:sti:i> IX CoXSTKLCTrOX Cd.MI'AXY AXn SkCRKT (flFTS To. The law is well settled that a director cannot heconu^ a contrai'lor with the company, nor can he have any ]>ersonal or pecuniary interest in a contract between a tiiird peison and the comjtany of Avhich he is a director. And it is also a well established juinciple of law that a director commits a breach of trust in acceptin;^ a secret jiift or seci-et ]»ay fi-om a ]>ers()n who is contractinj* or has c«nitrach'd wilh the conijmny. and that the company may compel the director to turn over to it all the money or property so received by him. So, also, where a direc- tor receives a commission fi'om one wlio obtains a benelit from the company throuj;h the director's intluence, tlu? lattir nuiy be compelled to pay over the commission U) the company. 'A. Frauds uv I'ro.motkrs ox tiiic Comi'AXV. A promoter is a person who brinj^s about tlie incoi- ]!oration and organization of a company. Ife brinsis toj-ether the jtersons who become inter- ested in the enterprise, aids in jtrocurinji subscriptions and sets in motion the machin<'rv which leads to the « formation of the company itseif. A promoter is considered in law as ocenpinj;' a fiduciary relation towards the company, lie is an agent of the company, and is subject to the disabilities of such. There are two classes of cases in which he may be guilt3' of a breach of his duties to the company. First, where he sells ju-operty to the company. If he purchased the property before he began promoting the company he may sell to the company at an advance Cli. 12.] ruAiits liv nt<>Mi>Ti;i{s ox siiaiu:ii()li>i:i!s. 170 wifhont romoter the profit made by him. If the proniotoi' owns the jtroperty at the time of forming" the company and s«'lls it to the i-ompany at an advance ovei- its cost io him. and then induces persons to subscribe by statinji that he mad<' no prollt thereby, he is liable in equity to account to them f(»r the injury they have sustained. Second, a promotei' may commit a brt-ach of trust by accept inji' a commission or bonus from a jierson who sells lU'operly to the company. The com|»any may comjK'l him to turn it into the coritorate treasury, ov the comi»any may rescind its purchase of the jU'ojK'rty. The law is riyid in its protection of the company and shareholders. If the commissi(»n or bribe ]>aid to the juomoter consisted of shares of stock, then the comj)any may re- cover from him the amount received by him up(»n a si;lc of the shares and all dividends ju-eviously received, together with interest: or. if he still Indds the shares, the company may recov<'r the hijihest juice which the shares of the company have touched in the interval between the }iift and the action, toj-cther with interest. The sub scribers for stock may sue the directors f<»r fraudulent re[>resentations if they knew that the pronutter was secretly receivinji larjic illejial profits. 4. Fkai'DS r.v I'RcmoTi-.Ks ox tiik Sir. \ki:ii(ii. dick. To secure men of ability and financial staudinji to serve on the directorate, the promise is often mad*' them that the shares necessary to qualify them for 'he otlice ISO KLLATIONS J5KT\VKi:\ DIHiaTOUS AND COMPANY. [Cll. 12. Hhall be i)ai(l for l»y others; lliat Iht'ii' diilicH sliiiU !»' iiHMclv nominal; that tlic.v shall have no liahililv, and in some cases that they shall he paid l'<»i' so serving;;. These ari'an^ements are all fi'an[ the Company and Purchases at Foreclosure Sales. One of the most frequent frauds ])ei'petrated upon a company and its stockholders is where one or more of the directors i)urclmse i)roperty from the com]>any directly or indirectly or participate in the profits of such a purchase. It has been held that a director's purchase of pro- perty from the company is voidable at the option of the Ch.l2.] i.OANS IIV DIItKrToIlS TO roMI'ANV. 181 (■(Miipiiny. even lluiii*'!) the (lirrdor ])iii(l its iiiutli as ur iiH>r<' tliiiii tlu> piopcrt y is wmi-iIi. Similar i-iilcs prevail in irfiaid to a dirt'ctoi's |iiir- cliasc (»f corporate pi'operlv al a t'orerlosui'e sale thereof. rie caiiiiot be a |tiirrliaser. eitliei- directly oi- indirectly, at the foreclosni'e sale. This is the i-nle whethei- the foreclosnre is inslitnted by th(»se interested in the cor- poration uv liy third lai-ties. If the director pnrchases at sucli a f«>reclosure sah* he holds the properly as tnis- t«'e for the benefit of the corp()ralion and the stock- ludders. Tpon beinj; I'epaid the ]»rice he ^ave therefor, he nnist make over the |(roperty to the corpoi-ation. A direct(»r cannot jnirchase <(»i'|torale property sohl nnder execntion. noi- pnrchase. either in his own name or the name of another. c(»ri»orate jtroiM-rty sold foi- the I'ayment (»f taxes. The cor|>oration may reclaim the l»i<)perty npon payment to the director of the amonnt he paid therefoi'. A similar inle apjdies wln-re a director allows or bi*in<>s abont a forfeit are of a lease which the c(nni>any h<)hls as lessee, and then lakes a new lease of the same projterty in his own name. 7. Loans r.v Diuia 'ii irs to tiii". < '( imi'axn-; Moktoagf.s r.V TJIK COMI'ANV TO Till'. 1 )l RIXTOKS. AN'O THE IvKIHT OF AX IX.SOTA'l-.NT CoMI'AXV TO CINF A MoRTi .AC IC OR AssrnxMKXT of ris I'roi'I-.riv to a 1)iri;( tor ix oRDKR TO I*kfi'I:r Till': ^A^■.^^■:x'l• of His l)i:r.r. Tliere is no qn<'stion that a com])any, while sol- vent, may borrow money of a director, and may jiive a mortjiajic to secnre its jiayment. The j;ivin;j.' of the moi-t- <;anl where the com- l»any is insolvent an entirely dilVei-enl qnestion arises. There has been dilVerence of ojtinion in the courts, bnt the weifiht of authority clearly and wisely holds that an insolvent company cannot pay a debt due to a director in preference to debtrj due others, either by turnin*'' out property to him or by giving" him a mortgage on cor pornte assets. 1 S2 lHltr.i'l'iMlS MIST ISK OltDISAItV iit of tli(> roiii|»:iiiy jis I'cyjiidH the iniiioi'ily. 'riins. wImtc iIk* niiijoiity iii<' iiil('i«'st('(l ill Jiiiollicr compiiny. iiiid llic two (•om|>iiiii»'s liiivc roiilrjicis lielwrcii tln'iii, it is frinKliilciit for tliat iiijijoi-ity to iiiiiiijijic the nlViiirs of tin' tirst conipjiny for llu' iH'iH'fil of tlM' sccoimI. a roiirl of (Miiiity will iiilcr- v<'n«' iiiid protect the ininoi-ity upon iiii ii|ipiit'alioii by the latlcf. 0. l)lNi:( roKS MIST IS!'. OUDIXANV CaUI'. AM) iMl.K ;|-..\( !•. IN I'lii': .Mana(;i:mi: NT ni- riii-. ('(imi'.wv and tin: Tkansac'iiox of rrs !*.rsi\i:ss. Tlic (lii'('cl(H's of a conipaiiy arc not jiiiarantors lliat no iiiistalvCM will be made in the iiiaiiaj-cinonl of Ilic corporate business, nor do lliey insure Ihe conii>any a;.rainst loss l»y the frauds or einbez/lenienf of snlxndi- nate oflicers an liiisiiH-ss niiMi)' fo tliciii; la olijcrl to III!' hiiiisiirt inn ul iiii|i()t'liinl ItiisiiH'ss witlioiit IIm' kiiow- lc i'f|M)rls iiinl niiiltris of IhisIim'ss liroii<;|ii lifl'oK' tlinii; iiiid iioi to shut ilirii- cyrs to oli\i- oiis ol)JiM-l ions to till' iMisi'irss ir:insiirt ions jintl i^i'iici.il rontliiinii of tli<> ronipiiiiy, or to ilic I'lmiiit'irr ;uh1 \v*'I1- kiiown i('|»ntjition of the ('niploycrs. Morcost r, wlim m iliro'loi- Ii:is know lr(|;:i> tlnil nn uniinlliori/.)' jiiiltility. iiowrvn- innot-mt he niiiy !•('. unless In- prevents llint net l»y liis piidest. op lakes net ion to ieiney exeessive inei-enses «»f snhii-y, nnnh' to induce shnrelioldeis to sell stock will lie eiijoiiHMJ. II. SiT.st Kii; i:ks T{i;m i:iii is ^^'lIl■.Kl; Sim;S( kittk i\s ii.wi'. i:i:i:\ ( )i:'iai \i:i) i:v l-'KAinr i.i:n r Ki;i'Ki;si:NTAri()Ns. Tpon discoverinj;' tinit his suliscripiion hud been induced liy frnud n suhsciili<'i' nniy rescind the suhsci'ip- tion by nn ininiedinle notice to the ollicei-s of the ('oni- pnny, or when sued uptni the subscription, he nniy sei up the fi'nud ns n defeme. provided he does so befoi'e tlic coniniencenient of windin^-uj) proceed inys. lie luiiy nlso brinji' nn ndion njiuinsl the i»ni'lies who induced liini to subscribe nnd r<'cover (hinni,ues; he niny sue for the money ]>iiir (lie (< i:i|):inv iiixl lis to o(li<>i' sliin-t'lioldcrs. iiKlioiijfh as be! ween (he Irjnisrcnu* ami IIh' (la.iislVicc. liic transfer inav have liecii i.1)i:k 'lo si'.r oi'i' l)i;i!i'. In anv action by a eonipany aj^ainsl one of its share- holders, while the <'oin|»any is a ji'oinj;' concern, the share- holder has the same rijiht to set olT any debt, which may be dne to him from the company, which he would have if sued by a natural person. If the company becomes insolvent. h(»wevei', he will not be permitted fo buy up judgments or other claims aj^ainst it and set them olV a.uainst his liability for un|>ai('. slocU. He may on the other hand, if he be not a director, bay such claims at a discount and ju'ove them up as a creditor foi" their full value. ■«:• ili^ii CHAPTER XIII. i'()\vi<:i{s OF co.MrAMFs. 1. (1|:NK1!AI. I'oWKIiS. •2. I.Mi'i.iKi* IN»\vi:i!s. ;?. CuNIKACIS .\NI> CoNVKV- ANcr.S. 4. Folt.M (»!' r()N'IKA(?r. f). I'/Ini Vrn's CoNiitAC'i' — ASSKNT OK SlIAUi;- ll(>l.l>KI!S. . I'oWKlt OK AN ONTAUK) ("oMI'ANV To DO IW'SI- NKSsol rsiDK'I'IIKl'UoV- IN( !•:. 10. TowKii OK l*'onK(<;\ Com- I'ANV TO HOLD liAND IN ONI'AISIo. 11. I'oWKIt OK A C'oMI'ANV To issHK I'.oNDSoi; |)Klii;N- 'IMItKS. SIMP AND ClAliAN'I'V. I "2. MaV WIND I'l' ITS 1)1 SI S. |)oiN(i IlisiNK.ss With- ni:ss. oi'i" 'iiiK SoVKiiKKJNiv I 1.'). Sens in' ( Jo.mi'aniks. IN WHICH IT is Incou- j Ik Dkka.mation, I.ii'.ki,. I'o|{aii:d. I 1. l'o\vi:us ()i- CoMi'AMi'.s IX (Ji:NL:RAr,. A coinpiiny iiiiiy do :ill iicis (liiil iirc rciisoiiiilily iit'ccssiiry \o itccoinplisli its oltjccjs, ;nnl Hie nilc iis (o wli;i( Jicis jirc iKMM'ssiiry wjis staled in ii lliiilcd Slates toui I in Uridncpoil \. Ihtiisalonic Ky. Co., IH Conn. t7."», as ioJiows: " in lliis connlry all <'onipanies, wlielliep IMiblic o\\ers Iron! Ie nolhinj;' for which a warrant could not be found in the lan^uaj;(' of their charters, we should deny to Ihein, in some cases, 1h« l>ower of self preservation, as well as many of-tho means necessary to ell'ect the essential objects of their incor- l>oration. And, therefore, it has long been an estab- lished principle in the law of companies that they may 1»6 IMI'LIKl) i'OWKUS. [Ch. 13. <'XOi'cise all the powcis within thf fair intent and jmu'- lK),so of llu'ir Cleat ion which arc reasonably jnopci' to give elVect to ])owers expressly granted. In doing lliis they nnist have a ♦choice of means adapted to ends, and are not to be conflned to an^' one mode of operation." v lias for mav aiH 1 iui-y- I tho I'lliU'- It'l' to ((/) To <'X(H'ul(' a l»oiul for any i)uri)os(' for which it may <(>n(rat bills of exchanjic. if smh be a nsnal or ]>ropei' means of accomplishing the objects for which it was cr«'ated. (/") A comi>any has the jwAver to jtarchasc a jtatcnt when it is necessary or jtroper to own the same in oi-der to carry on its lejiitimate bnsiness. (/.) A company may nnder certain circnmstances where ]>ower is <;iven either exjM'essly or by neci-ssary imjtlication, hohi shai*es in another company, thonj;h, j;enerally sjK'akin^', it wonld be iillra rircs of one tradinjj; »(>rporation to take shares in another. Section SL* of the Ontai-io Companies Act directs that "the c(»mi>any shall ]n)t nnder any circnmstances nseanyof its fnnds in the i>urchaseuf stock in any other corp(H'ation, nnless and until the directors have been expressly authorized by a by-law passed by them for the ]>urpose and sanctioned by a vote of not less than two-thirds in value of the shareholders i>resent in p 'rson or by ju'oxy at a f;eneral meetinj»' of the company duly called for considei-iny- the subject of the l>y-law." In the United vStates a company cannot hold or deal in the shares of another company unless expressly authorized bv law to do so. The House of Lords has decided that a company cannot purchase, acquire, or otherwise de; ' in its own shares. (/) Power to enter into ])artneiship. A company has no implied power to enter into an ordinary contract of ]»artnership with either another company or with an individual or individuals. To permit a company to do this would take the manaji'ement of its alVairs out of tlu? hands of the otiicers and aji'ents and allow it to become bound by the other members of the partnership. ISS CONTIIACTS AND CONVEYANCES. [Ch. 13. \'< In addition to these powers rompanies have all powers that are reasonably neeessary or proper for the execution of the powers that are expressly jjjranted. 3. Contracts and Convfa'axcks. A company has no power to enter into any contract that is not expressly or impliedly anthorized by its charter, lint any contract that is reasonably necessary or proper for carryinj; out the powers expressly con- ferred is impliedly authorized. 4. Form of Contract. If the charter of the company or some statute ap- jdicable to it, expressly prescribes a certain mode or form for entering into contracts, that mode and form must be followed. 5. Ultra Vfrks ('ontract — Assent of Shareholders. If the company is a company only for a limited pur- pose and a contract is not within their authoriij , the assent of all the shareholders to such a contract, thoufih it nuiy nuike them all personally liable to perform such contract, will not bind them in their corjwrate capacity or render liable their corporate funds. The majority of the courts hold that the contracts of a company which are objectionable only because they are ultra vires of the directors, are not so far illegal that no action can be nunntained upon them, and that the plea of ultra vires should not prevail, whether interposed for or against the company, when it would be intMpiit- able and unjust to allow it, as where the party seeking to enforce the contract has performed his part, and the contract is one that nuiv be ralitied bv the shareholders. G. Liability for Torts (a). A company is liable for the torts of its servants and agents committed in the course of their employment, to the same extent as a natural person would be. (a) Tort is tlie legal term for any wrong or injury to person or property. Cli. 13.] Doing business withol't soveueicn rv 189 [the lei's. land to In or 7. Contracts of SuRiiTvsiiip and Guaranty. A company has no power to entoi' into a contract of suretyship or j^uaranty, or otherwise to lend its credit to anotlier, unless the i»ower is exjaessly confeired by its charter, or unless such a contract is reasonably neces- sary or is usual in the conduct of its business. Ordin- arily the act of becoming surety or j^uarantor for the contract or debt of another person or company is not within tie imi)lied powers of a coni})any. 8. Doing IJusinkss Without the Sovereigntv in which IT IS Incorporated. The right of a company to do business in a foreign jurisdiction, cannot be regarded as inherent, but be- stowed. This right by which a company created in one sovereignty can do business and make contracts in llu* full enjoyment of its powei's in anothei* state, is based upon the comitv between States, but when contrary to I h jtublic poli<'3' or prejudicial to the interests of the State, the comity ceases to be obligatory. Indeed, the i)ermis- siou or license to exercise such right is always a yoluntary act of the sovereign power. That a state 1ms the ]>ower to authorize a company ** to migrate" and establish itself elsewhere, there ap- pears to be no more reason to doubt than that it has the power to authoi'ize an individual to do so. For a com- l)any is a person, though an artificial one, created for a certain object, and if, in fui-therance of that object, it is found expedient to open a branch establishment and carry on business in a foreign country, that c(»unti'y be- ing willing to receive and i'ecogniz(» it, there seems no good reason why the company should not be empowered to do so. The right, however, to carry on business in a foreign state must not bo confoimded with the power to enter into contracts and incur obligations simply beyond the jurisdiction in which it was created. Hi- El! 3 i- 1 ■A - i'tl J. I ... m,. 190 Power to do husiness outside oxtauio. [Cli. 13. This lilt (or is not i»i'ecisely the saiiu' as the otlici-. tliouf^li einbradiif,' the same two points, viz.: 1. Is it within llic scojic of the powers witli wliidi it was in- vested by its ehaiter to so contract; 2. If so, can it {i.e.. lias it the right by the law of that country to) enforce such contracts; or, in other words, can it sue and be sued in a foreijin country. The first part would be controlled by the general contracting powers of the conii>any. As stated by Brice: — ''The company must, no doubt, show- that the laws of its creation gave it authority to nuike such contracts.'' And, if it possess;es such authority, it can enforce them, subject, of course to the laws of the countiy in which it seeks to enforce them. 1). ruwER OF A\ Ontario Co.mi'Axv to do Ulsixess Out- side THE i*KO\lXCE. The restrictions contained in the Ontario Joint Stock ('()m]>an:es Letters I'atent Act and in the form of License employed tliereundei', were omitted from the Ontario Companies Act, 1807, 11. S. O. cap. IJH, when the latter Act was substituted for the fornu'r, the object being to remove any doubt that might otherwise have existed as to a company incorporated in Ontario being able to carry on business in any part of the world, if, of ci>urse, it complied with local conditions. I'nder the present Ontario Act. therefore, companies intending to €lo business in the Yukon District, and in various parts of the American continent have been incorporated, and charters for the purpose have been taken without ex- ception or (piestion. even tlK)ugh they themselves in no sense i)urported to give to the comi)anies express jiower to carry on their business beyond the boundaries of On- tario. Under such chartei'S there are to-day ctunpanies working in Central America, lirazil, and various of the States of the adjoining Kepublic. Indeed, it is a (jues tion whether express permission is necessary. For in- stance, in examining into an application froiu an Extra Cll. 18.] I'UWEll TO IS.SIK I'.ONDS Olt DEHKNTl'UKS. 191 111;- to liio l''-'l.' )n- he irs- Im- [la Provincial Conipaiiy for a license to do business in On- tario, the Deiiaitnient diaijied witii tiiat duty only con cerns itself to know whether the company has a j-eneral rij-ht to extend its jKnveis to Ontario, and the Depart- ment is satistied if tliere api»ears to l»e no diiect or in direct jtrtduhition. The Ontario authorities oiTer no objection to the in- corporation of a comjiany the objects of which are stated to be t(> carry on business outsiib' that IM'ovince. 10. Po\\j:k oi- Fokkic.x Compaxv to Iloi-n Laxd ix O-XTARIO. Foreijin com]ianies have no ]»ower to own land in Ontario. They can only hold land by the medium of tiusteos, or by either takiny out a license to hold such land, or becominj; incoi-jiorated under the laws of the Province. Tlie Niagara Ileij^hts Land Co.. incorporated under the ]>rovisions of "The I'.usiness Cori»(U'ation Laws" of the State of New York, bein^ unib'r the imjiression that ii was entitled to liold land in Ontario without special license or other express authority, ])urcliased and took a conveyanc<' of certain jiai-cels or tracts of land, in the village of Fort Erie, Ontario. The etlect of this con- veyance of said lands, was to create a forfeiture thereof to the Crown, liy the exercise of the clemency of the Ci-own. the land was subse(]ueutly transferred to a trus- tee for the company. The Crown only can take advantage of such a for- feiture which can not be set uj* by a ]»rivate individual, excei>t by way of anil Ch. i:i.] DKFAMATION, LIHEL. 19.S 14. Df.fa.matiox. LiiiKf,. An action will lie at the suit of an iniorporatcd trad- ing fonipany to recovoi' daniajjcs for a libol oakulatt'd to injnre its reputation in tlio way of businesH. South Ilctton Coal Co. v. North Kastcrn X(«w« As- sociation (1S04), 1 Q. IJ. i;?:?. f<»llo\vc(l in Journal I'rintinj;: Co. V. McLean, '2'.i Out. A. K. ^24. A company may also be held liable for libel that is, in law, may be guilty of malice. W.S.D.M. -13 II- iJ '^ CHAPTER XIV. GOODWILL, (X)LLATI:HAL SKCUKITY, CllEQlES, SUUETV IJONDH. M. I'i ;■ l! i 1m L Good Will, Definition i<') Nkcohaiuutv. {il} V H K S I', N T M K N T WITHIN * '• HllAHONAllLK TiMi;. 2. CoLLAIICKAL SkcUKIIV, (') Ckhtikiki-. Dki'inition ok; What 4. Endokskmexi' ox Notks IT MAV Consist of. : ou Hills of Kxchancje. 3. Ciifc,m;ks, J)kfinition of. 5. Bonds RL(,)rii{i';D fko.m („)Xi8K0F. I Cashifks, Tkkasl'kkks, (b) UsAdK HY CoMTANIKS, EtC. ! ElC, ETC 1. Good-Will. Is dcttiu'd as b(Mii«>' "the advimln^fc or bciioHl which is acciuircd hy an establishincnt beyond the mere? value of the capital stock, funds or property euii)loyed (herein, in conse(iuence of the {general public pa(rona}i<- and I'ncourayenient which it i'ec<'ives from constant or habitual cust(>niers on account of its local ]>osition or connnon celebrity or reputation for skill or atlluence or punctuality, or from other accidental circumstances or necessities, ov even from ancient j>artialities or l>reju- dices, and is nothin*; but the chance of beinj; able to kee]) the business which has \n-o\i established; the sale of a mere chance wliich vests in the purchaser nothing but the ]K)ssibility that a pi-eference that has usually been extended may continiie" {(t). Thoufi:h, ])erhaps, somewhat uncertain in its nature, good-will is a proi)erty, and whether it is to be ticated as real or i)ersonal property depends upon the facts (►f the particular case, and esitecially on the nature of the property (if any) to which it is attached. m) A. & E. Ency. of Law. Ch. U.] COLLATKItAL SKCl'IMTV ins 1^' Iv IK' Wlu'i'c ii ^(ivcriiiiij; sljihiit' pi-ovidcs tliiil no slock kIijiH Itc issiu'd for less lliaii \\n par viiliic jiiul fxccpl lor money. Ijilior don*', oi* property iicluiilly received Tor the use iind liiwl'iil piii|»oses of tlie coinpjiny, it lias been lield tiiat the jiood-will of a Imsiiiess is property for Aviiicli stock ('f tii<' coiiipatiy may he lawfully issued. L*. Coi.i.A'ri'.KAi, Si:( iKirv. Many persons very I'ijihtly icfiise to iii.hti-se paper for others, anrinci- ])al jtroniise as an adal . Hill of Ladinp (u- shipping receijil that represents poods in transit. 4. IIyitothecati(»n of poods by wholesale deah'i'. also by the manufacturer while in jtrocess. n. Certifieates of Sto h' tlw bank to sell tlu' ^oods, wares or incrchaiHlise with- out tlic formality of the notice recpiiretl by the llanlvinj; Aet. 'A. Cni:(jui:s. Delinition — A Clieiiue is a Hill of KxchanjAc diawn on a bank payable (Hi denuind. (a) i'se (if <'lir1 1>U Iri' ny 'iv llv to or(l«'i', iK'forc si^jnii'.},'. II is not siifl' to »iin'ss willi (■1iiM|i!cs piiviilih' to iM'iircr, iis slioiiM one lir «1i'o|i|m'iI or iiiisliiid it is lu ;;'otiiil)l*> as ji itiinix note, iiiiil niiiy |iiiss into tJK' liiinds of an iiinot'cut lioliici- i'oi- valiK*. ami Itc paid by llic bank and lie lost to tlio pro|M'i' lioldcr. ((/) I'lrsnihiifiil irilhln licdsniinlili' Tiiin'.- — Wlicn a (■1i(M|ii(' is ^Mv«>n in payment of a d<'l)t, it is not intcmird by Hh' drawer tliat llie pay«'e keep it six montlis oi- a year before <'olle(tin;; it. It slionid be pi-esented williin a r(>asonable time. In deteiininin;; rrasonablr time, ]-e;iard must be liad to tlie enstoni at tli<' plae(>, and to s|iecial eii'cnmstances of the case. Tlie Kn;j:lish rub- ''ollowed in Canada, is: — 1. If the jK'rson w .10 receives a cheiiue and the bank on whom it is drawn are in the same ]>h»(e. the elieiine nnist, in tlie absence of special cii'cum- stanc<'H, be presented for payment on the day after it is received. li. Jf tlie i)erson who receives a cheijue and the banker on whom it is drawn are in dilVei'ent ]daces. the cheque must, in the absence of sjuM'ial ciiM'umstances. be forwarded foi- jiresent- ment on the day after it is r«M-eived. and the ajicnt to whom it is forwarded must, in like manner, ])resent it or forward it on th<' da\ after he receives it. .'?. Tn com]nitin<; time, non-business days must be excluded, and when a checiue is ciossed any delay caused by ])resentin<; the eheiiue pursuant to the crossinj; is excused. (f) Certified Cheque. — Is a cheque to which the cashier of a bank certifies in writinj; as to the <;('ninneness of the sifinature of the drawer, and that he has funds on deposit suflicient to meet it, the bank i<'servinji the amount certitied, and refiJirdiuf? it as havinp,' been already paid, and therefore unavailable for other us<'. Certitied cheques are charfjed to the drawer's account siniultane- ouslv with their certification. lf)H KNDOIJSKMKNT ON NO IKS. [Ch. 14. 3' . pi* IM' I': •I. l"]Ni)()Usi:.\ii:\r (»\ \ori:s ou Ilii.i.s nv Kxciianci:. The ('ITcct <»r ill! ('iidorsciiu'iil on :i liill of l']x«'linn,i:(' or :i Nolf by tlu' lioUlcr llicrcot', is lo IriiiislVr (lie pi*o|>- v\\y ill il lo some one rise. II iilso lias llic cIlVcl of };'iiiii"iiil('('iii^' llic Hiilis(M]U('nt holders a<>'aiiist the (Icfaull of (lie accoi»lor oi' maker, unless olln'i'wise staled in llie indorsenienl. The oltject of an indoi'seinent is also lo i'<'nr(»perly en»b)i'sed. The endorser is precludeil fioin ill or Note .vas at the time of his indorsement, a valid snbsistiiifi' Hill or Note, and that he liad then jiood tith' thereto. The varions wa^ s of endoisinu' I'ills are as foil >ws: — ■ Ol'l'.N on IN lU.ANK. IN iri.LOliSPKCI.M. (irAi.niici). Daniel G. Jleid-iPav W. H. Leeds Piiv W. H. Leeds IVv \V. B. Leeds or order. oidy. Daniel Ci. Keid. Daniel Ci. Heid, or iirder, without recourse to me. | Daniel (J. Heid. |?|"rn!! n 1 ^f:- m 9, li L The princiital kinds of endorsements in n; ' are shown in the above diajiiam. F(»i' the sake of elearness we will snppose the Note oi' ISill lo havt> been made in favo!' of " Daniel (J. Kcid or ordei'." !f lieid <'ndorses it by dimply writing his name across the baek withont indicatinj; to whom he orders the liill oi' Note to be paid (oalled •• Endorsement in lUank " or "Open Endorse- ment "), it ean afterwards be nep)tiated by mere delivery. If lie indicates some person to whom the 15ill or Note oil. 14.] itoNDs Ki;giMi«i:i) khom okfickks. 1!)9 is to !)(' |iiii(l. ;is *' I'iiv W. \\. Leeds (»r ordei' " or |»iiv " W. 15. Leeds" (ili(y (called '" (^ualitied l')ndoisemeiit "i. as *' I'a.v W. I». LeeNvn up in i-econt years in business practices in our cities a custom which has (he force ol law that illustrates the vain*' of characler in youn^' men seekiny employment in imi»ortant ]»ositions. It is estim- ated that altout L'r» i»er cen(. of those holdinji' what are ;ed to jiive bonds foi' the safe handlinfj- of m<»iieys cnti'usted lo Iheir care, and the various companies' acts provide Ihat llie directors nuiy nnike l»y-laws re^ulatinji' the amount of these bonds. In former days il was the cnst«:vii for persons obli{>'ed to ^ive such bonds to secure as bondsmen jtersonal friends, but the oistom has be- come almost (disoleto and bonds are now sijjned by com panies making;' that a business. anecitic li^ Ei it U Ml Vii % k u 200 BONDS llEQUIKED FllOM OFFICEIIS. [Cl».14. ; |[ 1 1 m 1 If \ ! t rate \)vr thousand for the s«'(iirity they {jjivc. Such }?uar antoe coniitanios fully investigate the reputations of i»er sons applying for their signature, and an applieant must have a good record in order to secure the bond, without Avhich the desired position cannot be obtained. 8onie banks and other financial institutions have themselves established a fund guarant[OTTON. IXCORPOHATIOX AND MANACE- 3[ENT OF COMPANIES: 'H^ilETIIEK WITH A DPTEST OF LEADINiJ ENliLlSII CORPORA- TION CASES. 1. Promotion. 2. Incoiu'ouation. 3. Managkmext. {(i) Stock asi> Siiaueholdkhs. {b) DiKEcroHs. (r) Officehs and Aoi'ation. take a practical jtart in. ov sanction, or ratify the prosecu- tion of its intended business, are liable to contribute in jMoportion to their share subscription- to any liability, l)roperly incuri'ed in carryinj; out the objects of such ju'ojected conii»any: — S(iii(lu!-n\ 27 Out. R. 077. n. PR(nmTF.RS xoT I'artxkrs. — T'rouiotei's arc not liable as ]>artners. nor is one ajicnt to bind another. For work done, only promoters expressly contracting; are liable:—//////// Man v. /;///'.s\ r^ It. C. R. 4Sany not yet incorporated are pei'sonally liable, if the company, when incorjtorated, r I ^m 202 CANADIAN CASKS. [Ch. 1, r(*|HHli.'il<'s rcsponsiliility: — rnrin v. LcsKfinl. Q. li. 17 K. L. nsi). "». Tkisi IIS. — IM'oinotcrs sliind in a lidiiciary icla- lioii to the ((miitaiiy, and cannot retain any soci'ot i>ro- lit made in tiansactions with the company: — fn re JJcss M'fij. ('()., L':{ S. i\ K. (U4. (). CoNsiDicKATiox FOR SiiAKKS. — IM'oniolors may a<'(inir(', as jiaid np. sliai'cs taken in consideration of l)i<>l)ei-ty transferred to the company, tlie l)arjiain heinj,^ fair. Spar.u(rs Case (L. J{. S Ch. Ai>i>eal. 4U7) approved. J.iininiiic V. Ilc/nirliniiiii. D S. C. (Que.) lli\ (1S!>7) A. C. Ki).' 7. ^iiSKi'. ;i:si-: xr A'liox. — IM'onioters iuducii'.i;' snl>- scrijdion of stock by misrei>resentati«>n are liahh* in ihun:\ixvn:— W ml hrrhr v. Wliilnni, '.W X. S. K. 45). 8. Ex ])i:i.i(T(». — lint to sustain an action of deceit aj;ainst jtronioters. their niisrejaesiMitation must he jtroved t<» liave heen fi-andulent :— /V/;/r v. (Iiirlph Lniii- Icr Co., U S. C. K. 4r,(). II. IXCOKI'OKATIOX. 1. IxcoRPORATiiKS, AViio MAN I'.i:. — Orijiinal sub- scribers to a comi>any must be persons siil jiiri.^: if only minimum number, the infancy oi one i>revenls Company acqnii'in;i' lej^al existence — and this defect is incurable; Qiiacir as to married Avomen: — Ifaiii. tl* Flanihorouuh v. ToinisnuL 1:5 Out. A. K. TuU. 2. FuAt niLKxr Sii'.sckii'tiox. — Fraudulent entry of a subscriber's name in Letters Patent totally invalidates incorpcu-ation under th<* (Quebec Code: — /)'/.•. Ilovhdntfii V. (lavlh, ^\. L. K. 2 S. C. 2(H ; .s\ C. suh now. HI: Unclu'Vuja V. Sliinnii. l.") A. C. 414: See IJ. S. O. (lSil7) cajt. 1«>1. sec. 1)0. ."{. Xanic.atiox. — I'rovincial IncorjxH'ation for i>ui*- poses of navij^ation within limits of Province is valid: — MaaJniif/dll v. riiimi X similar to "rana. ('. I'rniKuinil, (» 15. < '. H, :{77. eachable as fraudulent or contra veninji the Statute of Elizabeth:— A' (V/A' v. ]!ci(L '2(\ Out. A. K. .'4. III. Maxaci-.mi'.xt. (V() Shirk (111(1 Slidrclidhlrrs, 1. Siiari:s Paid i-or ix l*K(ii'i:K'rv. — Shares may be validly, if fairly, acciuired as fully i>aid up. in considera- tion of property transferred to c(nn]»any: — Imirs v. Miller, 24 Out. K. IMIS; lit re //rs..' Mf'a. Ci,.. '2:\ S. (\ K. r,44. 2. SiiARi-.s SOLD AT Discorxr. — Shai-es cannot, in Jibsence of expi-ess statut«u-y authority, be accpiired from a coni]>any at a dis<*ount. as fully paid up. s<» as to relieve the h(d(b'r from liability for unpaid l)alance <»f par value:— A'. 11'. Elcdrir Co. v. WaUh. 2!> S. C. K. :;:{. 3. SunsF.oLi:xT IIoldi-.r. — I'ersons juirchasinji' fioiu original Inddei*, hona fide and without iu)tice, shares n 204 CANADIAN CASES. [Ch.15. I? I i n i^*' issiUMl at a disconnt, but as fnllv jtaid up, arc not liable for balance unpaid: — }fc('r(ik-rn v. Mcfiihin'. 1 S. (', R. 479. 4. Under special cii'cunislances a purchase r oi* transferee of sliares fioni a lioldei- who had not paid full par value for them held not liable ft>r unpaid balance: — Frascr lliver Miniiii/ Co. v, (lallaglicr, 5 1). <\ 1?, 8l!. 5. Ali.dtmknt Nixkssauv. — Kx<'ept in the case of orifiinal incorj>oralors iln re JliKjycrl Jh-os. Mf;/. Co., 19 (Jnt. A. K. 582), whose names appear in company's chartei- {Mago;j Textile Co. v. Price. 14 S. C. K. Gtion. without assent of subscriber, relieves him from liability: Sladacova Ins. Co. v. Ilnihixniu - V. K. I. R. 480; Cole v. Stcuiacona, S. C. K. 19:5. 13. TxFAXT. — Subscription in name of infant may be disaffirmed after majority attained: — lie Central Bank and Ilof/f], 19 Ont. K. 7. 14. Tex pkr ckxt. Pavmkxt. — Xon-payment of 10 ]H'r cent, within one year, as required by K. S. O. c. 191, s. 33. does not avoid the allotment: — Onf. Investment Ass'n. V. Sij)pi\ 20 Ont. R. 440, Com]»aro Baines's Casr, K; Ont. R. 293; 10 Ont. A. R. 237. 15. Traxsff.r. — Except as between assignor and assif^nee. rejiistration is necessary to ac(|uire valid title to stock transferred;— .?/»(■/// v. Wnllrn-iUe, 23 Ont. A. R. f>5; ^forlnn v. Cowan, 25 Ont. R. 529. (See now R. S. O. c. 191, s. 29). 10. SuRREXDKH. — AA'hcre ]»(>\ver exists to surrender stock, a transf(M' by ordinary assi<>nment to the pi*esi- dent, intended to oj»erate as a sui'render to the Com- ]>any. was held sufficient: — Kid- ami MavJinifs Case, 24 Ont. R. 340. 17. Tliere can be no valid surrender without statti- tory i\n\\\M'\^\:—Cnntnwn v. MrArllnir. 29 S. (\ R. at p. 245. IS. Reductiox of OAriTAL. — Company cannot re- duce its capital by acceptinj; surrender of stock: — Rns!^ V. Dnsal)hn. 10 Q. L, R. 74. |i:: f ' IT'! 206 CANADIAN' CASES. [CI..15. 10. Iii:i,i:.\si-. ()|- Sii.\Ki:ii()i,i)|-.us. — «NMiipiiny ciiimot (lisclwir^c sliiiiM'liohlcrs from lialiilit v for iinpiiitl stock so iis to iifl'cct Maid. sulticient funds are on hand, and sole ohjeci is to secure to directors contr()l t>f company's atlaii-s: — I'crrcnuH v. MiloL 12 Q. L. K. 24S. -'2. Foui'KnrKi:. — .Provisions for forfeiture of shares for non-payment (tf calls are intended for henolU of comjtany. and cannot be used for advantaj-c of share- holdei": — ( niiniinil V. .1/r. I /■/////;■. ii!i s. r. K. 2:{o. 2'A. XoTici:. — Where notice of inrention to declai'e foi'feiture is necessai-y. such notice must be exjdicit: — lii,hcr(s,)ii V. Ilnchchtija Hauh\ S. ('.. 4 L. N. .".14. 'lA. Kkstru riNc. Siiaki'.iioi.dicu's Kic.iits. — A resolu- tion i>assed at a shareholdei-s' meetinj>' ]Mirportinj;' to restrict ordinary rijrhts of shareholders is not hindinj'' on those not }>resent : — irofit made on ]Mirchase of coni]»any pro- perty :—7'//n*n-',s' r\?.^r. 10 Ont. K. 11:'.. 2. CON'FIRMATTOX OF A'omAlU.K rONTRACT. A fair but voidable contract, made by directoi-s with one of themselves as sole vendor, may be validly affirmed by nieetinjj: of shareholders, jit which such director-vendor, lioldinjjca majority of the shares, votes in respect there- Ch. lo.] M A N Al>l mil Mini 11,1 Cn., (I 15. ('. K. 4Jir.. 4. Fii)i"( I Ain' I'osrriox Kxds. — l-'Ulncijirv rcspoii- sibilil.v of directors, unless their powers are s|ieciallv tout iiMied. eeases on appoiiilineiil of a liciuidatoi": — Chdlhain \(il. li'iiilr v. Mrh'vni, L'4 S. < '. 11. :t4S; /.'<■ Muhon ('mil a- (li/jisinii C(i., '21 N. S. K. :!(M. "), Ki.iui i()\ oi". — Candidates slioiiM not Ite sci-ii- tiiM'ci's: — Dirh-sini \. MrM iirnn/. llstiraiii. 7):\:\. 0. \'f)-|i:s. — Kacli sliareliohler is emit led to one vot(> for each share of stctck npon which no call is overdue and \w\MU\:—l'iinlni„ V. Oiil. L. d- l>. Co.. L'-J Out. U. HUT. 7. N'ai.idiiv. — The ac(|iiisition of shares, if other- \> : (' projter. for the ])urpose of an election does not alTect its validity :—7'»/-. J I. a- .1/. Co. v. lii'tW. '2 Ont. K. 17"). 5. Acnrii:sci:xci:. — Aji illejial election of directirectors are I'e- s|»onsibh' foi- faults and misconduct of their emphfyees, unless not |>reventible by exercise of reasonable dili- fjence:— .1/r./>n/(,//r/ v. L'aidiii. M. L. \l. 7 S. (\ 44. 11. DiKixToKS xoT LiAiM.i:. — Directors are not, Avithout individual fault personal lo themselves. iesi»on- sible for t-onfi'acts or torts of company: — Tlicnrn v. llvn,Hi\ S. ('. 4 Que. 2'.\. 12. ri:KS()X\i. L[AI!lr.lT^■. — 1 directors and ofticers ai'e not jiersonally liable in an action based on an imjdied 208 CANADIAN CASES. [Ch. 15. hi r M i warranty of antlioiity. or on niisn'jtrcsctitaHon. whore IIk'v jmrcliaHo on credit foi* an incoi'iioi-alt'd associiition forbithlon hy its charlt'r ho to buy: — Slnilhcrs v. Mm- l-nirnal liability of directors for wajjcs (Iocs not extend to the sahiry of a foreman, wli't does no manual work, but iner«»ly sujierintends, pays wa«-es. ete.:— H>/r/< v. Ellis. 22 Ont. A. K. LM.'). 14. (.'rimixai- Offkxck. — ^A president or director of a tradinfj <()Tn])any charjjed with knowingly publish in,;* a fraudulent statement may be tried eithei' in tlie IM'o- vince fi'om whicli or to which he d<'spatched such state- ment: — Qiiccn V. Gillei'/''/'/' /ilinisnii y Vol,- Oiil. K. «;!M, L*0. IJoKKdW IXC. — ^WliciT. l>y liy-law. iHM'ntwin;: functions arc vested in diiccloi-s. (licii- exercise cannot l>e controlled Ity resrdnlion of sliarelioldei's: — ('dini v. J':ul,i,i, '2:\ X. s. i{. 17.'. IM. NA'liere there is ]^o^ver to Itori'ow. a sliaieliolder cannot prevent a loan bein(> N. S. K. 1!M). L*li. T'orirr In ri:Kii.ui;.\c i:. — Where any reipiisite sanction can be afterwards obtained, the Court will not int<'rfere to jtrevent an act. merely because such sane- tion has not been previously had: — I'linlmii v. Onl. L. d- IK Cu., L»L> Out. 1{. .~.!»7. L*.'5. Ai'i'Rdi'uiArioN' oi" r.\\Mi:.\is, — Directors may, with the holder's assent, appropriate ]»artial payments nmde on a nuinlter <»f shares to one or more of them so as to make such one «tr more shares fully ]»aid up. The comjiany was held estop|)ed from disputinji' such apju-o- ]>riation as a^iainst a third party who had taken an assignment of such ]»aid up shares for valine and credi- tors, not bein^' prejudiced, had no ^i-ound of complaint: —Xrrtait V. riinriihl, 22 S. (\ U. :{!)tl. 24. 1 .\i:(.)r.\r. Hv-i.aw. — A liy-law operatinj;' nn- e(|ually, or prejudicially to a class of shareholders, is in- valid:— .V. ir. Elcrlrir Co. v. ]Valsli, 2!) S. ('. 1{. .'!:{. 2;'). (iKN-KKAT, Assic.\.mi:nt. — Directors may. without s|»ecial statuto\y autluu-ily. or formal assent of all shareholders, nnike a .u'eneral assi;.inment f(U* benefit of creditors of company: — ffun'i/ v, Mliilinti. 1-t S, C. K, ,~»1."). 2(». ])f.li:gat[ox. — Directors cannot d(de■ v. Mi,ihn,,i /;. \\\ Cn., 7 om. A. K. KU. -. I'oi' iip|M)iiinii('nl of |icniiiiiinit iiiid |ii'iiiciiiiil olliccrs ((tiiliiUls should Im- under coiiMH-iilc sr;il: — Aniislrniiij V. I'nrlniji', FJr., Uij. Cn., 1 .Mjiii. \\. 'M\. W. l>is.\iiss.\i. \-\ l)iKi;( lOKS. — W'licrc powcf ol" dis- iiiissjil is reserved lo direcloi-s. it must lie strictly jiur- sued iiiid iit ii retiuhir iiieetiii;«- ot' the Hoiird: — .1/'- A\//'v//7/.s' V. Oi/ilrlr, 4 .Man. K. 1. 1, Ixsrr.ouDiN All, Manaci'.k. — Directors nniy dis- miss without notice a mana^ier who is ins(dent and in- suhordinale:— />/r/,' v. Ctunnhi Jiilc Co.. S. ( '. :'.() L. ('..I. isn. ."). I'owi'.u oi' .\(;i:nts. — Coriiorations are hound hy acts of aji'ents under similar circumstances and to the sauK' extent as ordinary jiersons: — l-'niiv v. 'I'liv Wurdnix, EU\, I. liev. de Lej-. L'7. (5. Ma\A(;i:k. — The mana^ier of a company can hind it hy all conti-acts within the aj)|»arent scojie of his aiithoi'ily: — Tliomjixaii v. Urdiilfnnl Elcrlrir, lT) Out. A. I{. :{40; MUhn- v. Cnrlinnt II. (I. M. r,;., '2U N. S. K. :{04. 7. !^Mi'i.()VMi:\T OF Soi.ici'ioK. — A railway comjiany was held hound hy the act of its manaj;«'!-. who employ- ed a s(dicitor at an annual salary, the directors havin;^ accejited his services: — Alhrrl llij. v. /V,/!', '1[\ X. B. H, ]!»1. S. Skckktakv. — A secretai-y cannot hind his com- pany by si};nini»- without authority a deed of coiii]»osi- tion and dischariic: — linll tl- Iron Cn. v. (loitin >H. S. (■ N. 40. !>. TyiAHiLiTV j-oK. — A company is liable for tlio non- feasance of its oHficers within the scope of their duties: \\h 3i Ch. 1. M.' na<;i:,mi;ni— c.M.l.s. Ill' Ills inv >v- Im- Isi- Im- — I.illinn-ir V. W'liiuls, \'.\ S. r. ((^IHM Iflli; MiM itnicll V. y.'r///-/ //n^/, 1) r. (". (j. 1'.. :j:5:;. ((/) Culls (>'(<' I H rcrliiis mi'l Slnirrlii'iilirs). I. W'liiN M A^ III M \i)i:.- < jills ciinnot \\r iiiiidr un- til cniiipjiiiy is or<;iiiii/,('(l : — llalif'i.r Ciinllr (H. v. Muh\ 2s N. s. i{. i:,. '1. ('.'ills liiiiv lie iiiikIc iM'torc llir rompilliy is )«'l'- iiiilh'd iiimIc! ils cliiirlci- to " (•onmiriMM' u|MMiil irrisni,, I'll I', r. C. |». -JIT. 1. Si:\ i:i<.\i. C.M.l.s Ar ()n( i:. — WIicit cnlls iii'c rc- (jiiifc*! lo 1)1' iiiiidc ill (MM'liiiii iiitri'Viils sivcimI ciiimot he iiiiidc at one meet iiiN-L.\\\. — A lly-liiw Tor ii ciill is mnit'ct'ssiirv; it Iiiiiv lie iiiiidc by resolution: — Cnimi /•'. /. Cn. v. O'Cmra, 4 (Hit. \{. :\:)\)\ L'lisruiin V, cniiiui Mf,j. Cn., M. I., i:. l'. s. ('. :\s\. 7. liisoi.iTioN'. — TIh' iM'soliition iiinst ti.\ the diiy iiiid pliicc f(n' jiiiynionl : — Niilifii.r Cirrllc Cn. v. .]fn!r. 2> \. S. 1{. -t,-). S. XoTic i:. — Notice niiiy lix ])Iilce of ])iiyiiiellt omitted in i-esoliilioii : — Ciilnii /•'. /. Co. v. O'Unni. 4 Out. ]•!. ."..-ll. !>. \'.\KL\ri()N From K'l-.sourK i\. — A Viiriiit ion in notice tVoin the resolution, iis to diite of ]»iiyiiient. iii- Viilidiites llie ciill: — Loiulmi lias Cn. v. Cduijihi'll. 14 l'. (\ (2. r.. U.",; rrnriii JUit seo National v. Fijleson, 20 Gr. 40(1, whore "not less than :{0 days' iiolice" beinjr reqnired, mailing; on Jnne 27th noliee of a call i)a.vabl<' on .Inly 27th, was held insnlticienl. (f) Dividends. 1. OiTT OF Profits. — A (\)mi)any, constituted under the Quebec J. S. To. Act, can only ])ay dividends out of actual ju'oflts, the capital beinji^ intact: — Angus v. Pope, G Q. P.. (Que.) 4.1. 2. f^NLAWFi'i,. — Directors, dedarinj; fictitious or unlawful dividends, aie ]>ersonally liable, except as to shar<'holders who knew and apju'oved, or who failed to attend a meetinj; duly called at which they might liave lejirned of the same: — Banqne d'PJpargne v. Geddcs, M. L. R. G S. C. 243. (/) Miscellnneons. 1. CiiANGF. OF Namk. — An incorporated company cannot, without lejiislative sanction, change its name: — Idoiid V. F. B. N. A. Hii. Co., 18 N. B. R. 194. 2. Dked to Company tn Formkr Namf.. — A deed nuide to a com])any in its original name which had been changed is good: — (Iraiid Jiinclion v. Midland. 7 Out. A. R. G81. .3. IMoRTCAfiE. — The power to acquire land implies power to mortgage for ])urchase money: — Slirppard v. Bonanza Co.. 2.5 Ont. R. .30.5. 4. Vo\ '. ' to borrow implies ])ower to mortgage: — Tn re Nash Bricl- Co.. 3 N. S, D. 2.54. 5. Books. — Inspection of company's books is .1 right of shareholders enforceable by mandamus: — Ilibhard v. Barsalov, 1. L. r'. L. j. 98. G. Seal. — The use of a seal as the corporate seal, with the knowledge and tacit assent of the directors, is a sufficient adoption: — McRac v. Corhelt. G Man. R. 42G. Ch. 1. MANAGKMKNT — Miser/. LAXKOl'S. •213 7. F(»mr.\i.iTii:s oi" Kxi'.ct riox. — A person takiiijj; fi'(nn ii ('((tiipany an inlni rircfi coiilracl uiHlcr ils soal is no< bound to soo that the ino|»('i' foiinalilies of exocn- tion have been obs(M'V«Ml: — Slieiipdnl v. Ildiunr.ii Co., 25 Out. R. 305. S. FoRFEnrRK. — Faihirc to (•oin])ly with a cliarlcr ]»i'o\iso Ihat cci'lain |n'o|»ot'jions of capital shall be sub- scribcil and paid up wilhin a liniilcd period is j>round for declai'inj;- a forfeiture of Charter: — DiDti. Sdlrdije Co. V. Alli/.-den., 21 S. C. K. 72. 0. X()\-C()Mrr.KTi()X Wrririx TtMi'. I*ri:S( uiiikd. — Failure lo coniplele woiks within linu' allowed by char- ter does not ipso foclo work a forfeiture, but alTords fjround for ]»roceedin}iS by Attit see also Hind'h'!/ v. (iUiU<, ■sleeve, 11) (ir. 212. 14. Ar.KF-KMKXT NOT TO PrKSUK CkUTAIX Oujl-XTS. A tra Out. A. K. 7:iS. lo. I'LTRA VruF-S. — A comi>any cannot i)ursue ob- jects other than those foi' which it is created, or such as are reasonably incidental; nor may it. to attain such objects, exercise its powers in a manner unauthorized: — Charh'hois v. Delup, 2(J S. (\ K. 221. 1(}. ('()\si:xT fIriH;Mi:xT. — A Consent Jud}»nient, ob- tainleadinji;s or facts stated, is in- valid as the contract itself: — 6'. X. 11'. Cent. v. Charleljim, (1890) A. (\ 114. 17. I'sK oi' Xainik of Dkftxct Comi'axv. — The transferee of assets and ji'ood will of a defunct comi»iiny cannot i)revent the mere use of such company's nauu^ by another: — Maulrenl Litho. Co. v. Sahislon. (> Q. R. ((^ue.) 510; altirmed. (IS!)!)) A. C. 010. 15. Oaftssiox IX Statttorv Kf.ti'rxs. — An inadver- tent error in a list of shareholders, sent in, ]Mirsuant to H. S. O. 1S!I7, caj). 1!)1. sec. 7!), lenders the company liable to a penalty:— 7'r^»/(('/- v. Hiawnllin, 'M) Ont. R. 547. IV. LEADING ENOLISH CORPORATION CASES {»). 1. AxDKiAvs V. (Jas Mktfr Compaxv. (1S07) 1 Ch. nOl: which decided that a company can, by takinjj; the l)ro]»er steps, create :{nd issue preference sharers, al- thouiih not authorized so to do by its memorandum, or ky its articles as ori^nally framed, and overruled Hut- ton V. Scarborouj-h riiif Hotel Co. (No. 2), 2 Dr. & Sm. 514. ('() From Palmer's Company Law. lie 11 y :7. Ph. ic il- ov ir- & Cll. 1 5.] LEAIMXG ENGLISH COIJPOKATION CASES. 215 2. AsmtiKV IJam.wav ('akkia(;k and Ikox (\). v. Richie (ls74). L. It. 7 Jl. L. (571: which dccuh'd ih;it the ]K»W('i's of a coinpiiiiy uiuh'r the Act of 1S(»2 were liiiiited by its objects. X Asniiruv v. Watsox (1SS.")K :5() ('. Div. :\H\: ^vhicll decided that wliere the rij;hts attached to several chisses of shares are set out in the ineinoi-aiidiiiii of associa- tion they are unalterable. 4. ItAiiiA V, Sax Fuaxcisco Haii.wav Co. (ISOS), L. K. o Q. 11. T)!),"): ill which it was held that a coin])any which issued a ceititicate of title to shares iiiijilit be estojiped by ]»ersons a<-tiiiji' thereon hon'i. pile. i). liARWTCK V. EXCLISII JoIXI" STOCK P»AXK (ISCtOl. L. K. 2 Ex. 2(!r): deciding that a coiiij»any is answerable in an action of deceit for the fraud of its directcHs in maiiaj^inj'" the affairs of the ( oiniiany to the same extent as if the frsind were its own. 0. J'.KADFORD J'.AXKIXc; Co. V. I»KIC,(^,? (ISStj). 12 Ai»i>. ('as. 20: decidiiij:' that n<>tice jiiveii to a coni]>any by an equitable inoitjiajice is not ii«>tice of a trust which a coiii]»aiiy is |»rohibite!»: which decidi'd that, under the ('onipani<'s Acts, 1S(;7 and 1S77. the <\Mirt had juiisdiction t(» sanction any kind of reduc- tion whatsoever. 9. IUkkixsuaw v. XrciK^r.i.s (1S77), l\ A|»i» Cms. 1(M)4: which decided that where a conii>any issues a certilicate i;! r. !l 'I tl 210 LEADING ENGLISH COUPOllATION CASES. [Cll. 15. to tho offcft that certain shares were fully paid up. it may be estopped from denyiu}T their beinj; paid uj) as against anyone acting upon such certificate in good faith. 10. Davis v. Bank of England (1824). 2 Bing. 30.3: deciding that Ji forged transfer of stock does not atTect the title of the stockholder to the stock and dividends on it. 11. Erni-st v. Niciiolls (1855), G H. L. C. 410; de- ciding that all who deal with a company are to be deemed to have notice of its registered documents. 12. Foss v. HARnoTTLE (184.3), 2 Hare, 461: which decided that the Court will not interfere in the inter- nal aiTairs of a company where there is nothing uUm vires the company. It leaves the matter to the majority. 1.3. Grti-fith v. Taget (1877), 5 C. D. 804; C. D. 515; which decided that, u]i(»n a sale under section 101 of the Companies Act, 1802, it was not allowable to ]>ro- vide for a distribution of the assets otherwise than in accordance with the legal rights of the parties. 14. Hakdv v. Fotiiekgill (ISSS), 13 App. Cas. .351. deciding, in etVect, that every liability of a company, however ditticult of valuation, is provable in the wind- ing-uji, unless de( lared by the Court " incapable of being fairly estimated.'' 15. Hartt.ev's Case (1875). 10 Ch. 157: which de- cided that where shares have been issued for a con- sideration other than cash, and by mistake the reiiuisite contract had not been filed pursuant to section 25 of the Companies Act, 1807, it was open to the parties themselves to rectify the mistake without going to the Court. 10. Keener v. Baxter (1800), 2 C. D. 174: which decided that Avhere A., before the incorporation of a coinjKiny, ]Mii}»orts to make a ctmtract on the company's behalf with B., the company cannot ratify such con- tract, and A. is personally liable on it. Ch. lo.J I,EAI)IN'tioii of the party defrauded; until avoided, it is valid; (21 that it is too late to rescind after the rights of creditors have intervened on a,windinfi;-up. 20. OoREGUM Gold ^rrxixc Co. v. Kopicr (1802). A. C. 125: decidinj; that a company limited by shares has no power to issue its shares at a discount, and that the registration of a contract under s. 25 of the Companies Act, 1SG7, makes no diflei'ence. 21. JlF. Opera Co. (1801), .3 Ch. (C. A.) 2()0: deciding that debenture holdeis have priority -over execution creditors on a winding:-up, and also while the company is a goiufi' concern, at any time before the proceeds have been handed over to the execution creditor. 22. Re I»axama :Mail Co. (1870), L. R, 5 Ch. 318: de- ciding that a charge on a company's undertaking by way of floating secui-ity is etTective. 2.3. Tarker v. McKexxa (1875), 1(1 Ch. 118: deciding that a director cannot make anv profit out of his agencv without the knowledge and consent of his principal—- the company. 24. Peek v. Derrv (I88O1. 14 A]»p. Cas. 337: which decided that, in an action of deceit against directors, it was necessary to prove fraud. 25. Peel's Case (1807). 2 Ch. 074: which decided that the registrar's certitil nr^ |i i W' 21!S I.KADING ENGLISH (OHI'OUATION CASES. [Cll. 15. 20. I'Ki.i/s Cask (ISdIM. H Cli. 11: which «l(M'i«h'«l tliat wiu'i'c shai«'s have been issued as jiaid-up shares uiiou 1h(* lo()tiiij; tliat certain specified jn'oitei'ly shall be accepted by tlie coinjiany as the consideration for such sliai'es, the Court will not. ivhihl Ihr rmilrdcl shimls. in- quire into tlie value of the considectus may be a uround for rescission. 28. KOYAL ItRlTISII JiAXK V. TlKOlAXi) (ISoTl. i'esently due from the shavoholdei- to the comjiany on his shares. 'M. 1{k STANDAKn ^lAXUFACTrRixr; Co, (18!>1| 1 Ch. 2(!7: decidinji' that debentures and trust deeds do not recjuire to be rejiistei'ed under the liills of Sale Acts. 32. Tkkvok v. NViiiTWORTir (1887). 12 Ai>]i. Cas. 400: which decided that it was illeual foi' a comi>any to buy its own shares. ;i:{. TwYCRoss V. (}RAXT (1877), 2 C. 1». I). 40!>: as to the construction of s. .*i8 of the (_'om])anies Act, 18(57. :U. Wkltox v. Safkkry (1807). A. <\ 200: which de- cided that shares issued at a discount must, even as between the members in a windin}j,-uiK be treated as imiK)sin«»- a liability to ]>ay up the discount in cash. .T). Wkstox's Cask (18701 4 Ch. 2l»: which decided that the lijiht of tiansfer of shaies in a company under tho Act of 18(52 is priiiin facie free. PART J I. STATUTORY PKOVISIONS (,F THE DOMIXIOX OF CAXADA AND OF TIIF^ PHOVIXCES TJIEREOF. HELATIXd TO JOIXT STOCK rOMPAXIl.:S: TOriETII].:R WITH IX STPUCTIOXS FOR PROCFRlXc; l.FTTFL'S PATFXT TIIKPET'XDEP. ! i 1 i : » i 1 ■ ! 1 X 3 ! : a '1 .1 HI ONTARIO LEGISLATION. l{i'.ci:\T ('ii.\\r,i:s. By sections 4, 5. <» jiiul 7 of the Oiilario (.'onipunics Act, 11. S. ()., JSt)7. cap. r.H, that Act is made to apply to every company heretofore or liereaftei' in<()r[»orate(l by special Act of tlie Lejiislatiire of Ontai-io for piir|»oses or objects williin tlie scojk' of tlie Act. Tiie provisions of tlie Act atl'ect a very larjie number of companies hitherto exempt from certain requirements made upon comi>anies incorporated under the general Act, such as the tiling of by-hnvs increasing or decn'asing the num- ber of directors, the making of annual returns, etc, etc., and brings them more directly under the control of the Lieutenant-Governor in Council. A further important change is made in dispensing with the giving of notice in the Ontario Gazette of ap- I»lication for incorporation, except in cases where the Lieutenant-Governor in Council directs that it be given. Two imi»ortant Acts {art of their cori>orat<* name. It also prescribes certain fees to be i>aid on tiling returns, by- laws and other documents. The sec(uid reijuires certain classes of Corporations, createatched at the otlicc. TN'litions and documents prei»ai'ed ujton pajier of a si/.e lar^ci* than foolscap will be i-eturned, as they can- not be conveniently tiled away in the Departmental lettei* cases. The Ontario Companies Act declares that m> stejts shall be taken in any Department towards the issiu' of any letters patent or su]»plementary letters patent uiilil aflcr (til fees therefor have been duly ]»aid. Cash remittances nmst be imide by rejiistered letter, or they are at the i-isk of the sendei-. i'ost ted baidc duMpU's and ill^^('l•li(>Il ;! oi> Eacli addiliniiiil iuscrtinn «u ((•) SurroKiitc Court NDliccs, tln'cc iiisiTliuus 4 00 (d) Dissolution of riU'lnfrsliips. one insertion -00 (<•) Moi'tin;,' of ('onii)iiiiii's or ('liiiiiKc of Nauic, one insiTtion. . U 00 (f) Sheriff's Sale of l^ands, six insertions S t>0 iiJ) .Aiiplieations for Leiiers I'atent, four insertions 10 (lo {h) Tax Sales, umler '27t lots, four insertions, per lot 1 no 'I'ax Sales, over 1!.' lots, four insertions, per lot <;o Otli. One eopy of the (limtU' will he sent each wei-U the adver- tisement appears, and will be iiieluded in hill of charKos. Extra copies, 10 eeius I'aeh. L. K. Cameron, OHiee of Qtieen's Printer, Toronto, .lantiary, lltoO. Queou's Printer. The followinj;- fees are usually charged for taking allidavits in Ontario: Notiirios are entitled to .^1. This includes oath, certificate and seal. If the notiiry draws the aflidavit he can charge also for it. Connuissioners are entitled to twenty cents, unless in cases where the statute specially states that they are entitled to twenty-tive cents. This charge generally in- cludes the i)rei)aring of the affidavit. Justices of the Peace are entitled to twenty-five cents. This includes the drawing up of the affidavit; they are. however, entitled to this amount even if they do not draw the affidavit. '!,' h, •it re li- ve t; lo TIIK inLl.oNVINC STA'll TKS l:i:si'i:r'l INt} (•((.Ml'AMI'.S AM» «nlJl'(»UA'II(>\S. iiA\ i: iii:i;.N i'assi:ij nv tuk (►NTAIMO l.KOISl.A'IMKK. 1, Ciiiniiiiiiii K fur Tnidr, Miitiiifinlini n. ilr. niAPTHtl II. S. i>. 1,S!»7. I'AiiK. IS'J.- .fuiiit Slock Ciiiiip lilies Ci'IktmI Clniiscs Act ioIi-idIcIc ns (() new coinimnifs) l,S'J3 100.— Joint Stuck Coinpiiiiii's iiinlcr IJ. S. O. ISST, Cip. l.'.T (■oIisdIcIc jis til new cuiniiilllicsl 1S1_'I- *J91. — Inccji-purjilinii niiil Kc^riiliiliuii df ('iiinininii's IS'J.'t 1P2.— Tclt'vriii'li Ciiiiiiiiiiiii's l.si;j 103,— Hnnd <'(iiii|iiiiiifs 1S((4 10-i.— ('(tiiii)iiui<'s to coiistriict \\'urks to t'iicilit.itc ilic irniisniis- siou of Tiiiilicr down Uivcrs aiid Strt-iiiiis lOOH lOo.— Coinpniiics for constriictioii of Tici's, Wli.irfs, I»r,v ItocUs, nnd Ilurlioiirs ItVJ.". 10().— ('oiiipiiiiics for crcftion of Kxhiliitioii Uiiildiiiu's 1!»'J7 ".I!)?.— Miiiiiii; Conipiinit's 103i> r.lS.— roiislriiclioii of Itoiids li.v Miiiiiii,' ( "uiiip.iiiics VX'S 100. — t'oiii|iiiiii('s for siipplyiiij: t.'ilics Towns :iiid Nilhiiics with Gas !iiid Water liMO lifiO Comp.'iiiies for Steini mid IleiitiiiLr, or fm Siip|il.vinu' Elect ricit.v or Xiitiirnl (ins for Tjl'IiI, Heat or I'owcr l!t."i 201. — Cheese and Butter MiinufaeturinK Assoc! it ions niul Com- panies lO'Ci 202.— Co-operative Associations lOf.O 2. Iii.siirducv <'iiiiiiuiiiirs, 2(1,'?.— Ontario Tnsiiraiice Act lOf.C 20-1.— Insuriuioe of IJve Stock 207t; o. L(>ic(tiis Anfiiwidliinis. tMlAl'TKH. ^U. - nt'iifV(>l4i>^ tlu' iiiiiiu's of liicor|i()riilc(l ( '(iiiipsiiiics *i:U'». — Liiiliility ol' 1 ►ircclors I'AlilO 'Sis: \\\ *'J17.— I'^niuiluhMil SliiliMiit'iils liv ('(iiiiimiiiis iiii*l Odicrs. ... L'lS.- Fi'os pa.viililt' by liicorpoijilcd ( 'oiiipMiiics iiiul oilier WW liodii "'21!). — IN'tunis from liicorporalrd ('oiiipmiii's ., liJUT ■J'JO.— (;ii:iraiit(M> ("oiiipjiiiifs iis SiiriMi.s 'J.'U'.'k 'JlM. — Invostiiioiits li.v Corp'.riilioiis 'l',':2\ S. M'itnliuii up of Cominniirs. ■_'-'_*.- AN'iiidiiis^ up .loiiit Stock ("oiiipanios 'J.'tll'J AnscKLL.vNKors .\('rs sn{sio(,)ri:N"r to kkviskd sTA'rr'rKs. i.sdt. "(11 \"\c. chiip. lit. .\ii .Vet to iiiiitMid llio Oiil.'irio ( 'oiiip.'iiiics Ai'l. ill \'ic. i'liii|). ■_•(•. -Vii .\i't to iiiiu'iid Till- 'I'iiiilior Slide « 'oiiiiiaiiics Aet. (.!2 \h\ cliiip. S.— .Vii .\(t to siippU'iiH'ut till' Ijfvcmics of the Crown in tlie rro\iiu'i' of Ontario t'Taxatioii of Certain Com- panies^. 02 Vie. eliap. ll.~.\n Act to amend the Statnti* l.twv (Minor amend- n\.— .\u Aet (o anuMid (he Kleetrie Railway Aet. Go Vie. ehap. (i.— An Art respecting: the Snpiilemenlary IJevennes of the rroviiue of Ontario (Taxation of Certain v'oni- l)anies). ♦»!;> Vic. chup. 2o. — An Act to aineii' *(!;'• Vic. ehap. 24. .\n Aet respecti' ihe laeensinu; of lOxtra I'ro- vineial (^orjiorations. lio Vic. chap. 2.").— An Act to amend the Act resiu'ctiiifr Cheese and Hutter Mannfactiiring Associations and Companies. G3 Vic. ehap. 2(>.— An Act to provide for the Incorporation of Co- operitivo Cold Stornjre Associations. t'>;i Vic. chap. 27.— An Act to ainoiid tho Loan Corporation Act. (53 Vic. chip. 31.— An Act to amend The Street Railway Act. ♦Printed herein, p'^st. ONTARIO JOINT ST()(^K (X)MrANIIX (") CHAlTKIl 1<>1, R. S. (). 1H!)7, AS AMKNDKI) IJV 01 VICT. ('A P. I!); (>2 Vicrr. (^\l'. 11 ANIXjy VICT. CAP. 2.'i. All Act respecting tl (^ Incorponition aiul Ifegiilii- tioii of Joint Stock Coinpanics. Iiitcrprota- lloll. TJKK .MA-II<:STV, hy and with llie advi<'e and consent -'-- L oi till' L('j;islativ(' Assembly of tlu' l*rovince of Ontario, enacls as follows: — I. This Art. may be <'ited as " The (Jiilario ('<>//(/>('/( I'w short tiiui. Act:' S. Where the words followin<>- occur in this Act, or in any letters ]»atent and suj>j»lenientai'y letters ])atent issued under this Act, they shall be construed in the manner liereinafter mentioned, unless a contrary inteii- lion appears: — {u) "Judj;*!" shall mean one of the Jud<;es of Ihe Jli^h Court of Justice. (//) "Letters i)atent" shall mean the lett<'rs patent under Ihe (Jreat Seal of Ontario, incorporating; or ic- incoi-poiatiiifif a comjtany, as Ihe case may be; lor any jairpose within tlu? scojie of this Act. ((■) "Troxy" shall mean any ix'rson representing' aiHi-ioxy.' absent sluireholder and duly authoiized in writinjf, to act for him at a meeting of the company. (a) It is 1o 1)0 noted (lint wliilc this Act has been priiitod so ns 1o show the nir.eiKlmeiits whicli hav • lte(y let- ters pat- ent. 4. The incorporation of every company hereafter bv letters patent shall be governed by this Act, and all the provisions of this Act shall apply to every such com- pany, subject to the provisions of any general Act apply- ing to the company. Si. The provisions of sections 17 to 10.5 inclusive, shall apply to every company incorporated before the i;Uh day of April, 1897, by letters patent issued under the authority of an Act of the Ix'gislature of Ontario, subject to the provisions of any special Act or general Act applying to the company, other than said chapter 157 of the Revised Statutes of Ontario, 1887, and the amendments thereto. spctiona o. The iH'ovisions of sections 17 to 97, inclusive, and winch ap- ' ply toeom- j^(,,,fiQi^5, 103 to lOfi. iuclusive, shall applv to everv com- panicM in- i i . . corporated pnnv incorporated on or l)efore the l'?th dav of April. on or I '• .' I I I a"''.T ,'^ni' 1897, by special Act of Ihe Legislature of Ontario for the April, is,)(, *^ ' by special p^rposes or objccts within the scope of this Act, except Sections wiiicli ap- ply tociini- panies in- corporated by lettors patent before 1,'Uli April, lsi)7. .k=^ Ch. 101.] APPLICATION OF ACT. 229 such provisions .is arc inronsistent with the provisious of the special Act or amending Acts, or other special Acts relating to the company. T. The provisions of sections 17 to 97, inclusive, and sectionH ' wiiicii all- sections 103 to lOG inclusive, shall, subject to anv vana- I'lvtocom- • pamos 111- tions and exceptions bv the special Act, applv to every *"""""V'*' companv incorporated after the liith dav of Aitril, 1897, A)"''' ":*''T' ' ^ 1/17 1,^. special by special Act of the Legislature of Ontario for pur- ^^^t- poses or objects within the scope of this Act, and the said provisions, subject as aforesaid, shall form part of the special Act, and shall be construed together there- with as one Act. 8. The provisions of The Onlnrio Joint Slock Tom- Uev. stat., fames' General Clauses Act, being chapter 15G of the Re- nni'to'iii)-' vised Statutes of Ontario. 18S7, and cliai)ter 1S9 of these imnios ir- ecijil A<;t iivBiiociai ' Act. of the Legislature of Ontario for any of the puri)oses or objects within the scope of this Act. iNCORrORATION BV LETTERS PATENT. 1>. Tlie Lieutenant-Governor in Council mav, bv coiiipnnies •^ toriiiiMl lor letters patent, grant a charter to any number of persons, ortain not less than five, who petition therefor, creating and ""'> '»■ ["- * 7 r> coi porated constituting such ])ersons and anv others who have be- ''>' '• tt«is " ' •• patent. come subscribers to the memorandum of agreemenr, a body corporate and politic for any of the i)urposes or obiects to which the legislative authorilv of the Legis- '^•'.y-.^^'^*' lature of Ontario extends, except the construction and Avorking of railways Avithin the Province of Ontario, the business of insurance and the business of a loan corjior- ation within the meaning of The Loan Corporations Act. (Amended by 02 V. c. 11, s. 21.) Tho powpr hcr(>l)y Kivvn is ontircly disfrctioimry. Although nil the roquirenionts of tho law htive hcpii complied with, the charter may be refused. There is uo absolute right to claim the grant of Letters Patent. "When the charter is granted it is on the express condition that it may be revoked by the Licutenant-tJovernor in Council on sufHcient grounds being shown, such as fraud, continued inisnianageinent, engaging in improper objects or works, and n ■ i iB j 230 ONTARIO COMPANIES ACT. [Cll. 191. gonorally such coiulnct as may be depniod injurious to the piiblie intorost. All t'hiirttTs are subject to revocation, but in order to call the attention of the corporators more directly to the point, a clause is now introduced expressly stating this fact. No conditions as to any of the applicants beins residents of the Province of Ontario are imposed by this or any other section of thi> Act. While there n\ust bo at least five petitioners for the Letters Patent, it is undesirable that the number of applicants be lar;,'e, as this causes ditliculty in the preparation of the papers. There must bo a formal petition, duly executed. There must be a Memorandum of Agreement and Stock Book, duly executed, in duplicate. Special conditions, if any, intended to have a bearing upon the stock of the Company, or the manner in which it, or any portion of it, shall or may, be subscribed for, must bo inserted in the peti- tion and in the ^leniorandum of Agreement and Stock i?ook as ma- terial parts thereof. The British North America Act provides that the Legislature of Ontario nu>y exclusively make laws in relation to matters coming within the following classes of subjects: Sec. 02, Sub-sec. 10. Local works and undertakings other thau such as are of the following classes: (a) Lines of steam or other ships. Railways, Canals, Telegraphs and other works and undertakings connecting the Pro- vinces or extending beyond the limits of the Province; (b) Lines of steam ships between the Province and any Briti>^h or Foreign country; (c) Such works as although wholly situate within the Province. are before or after their exeoition declared by the Par- liament of Canada to be for the general advantage of two or more of the Provinci-s. Sub-sec. 11. The incorporation of companies with provincial objects. Sub-see. IG. Cenerally all mittt-rs of a merely local or priva'.e nature in the Province. Forms for Obtaining Incorporation by Letters Patent. Petition for letters patent Form No. I't Attidavit verifying petition and as to name of Company " lt> Power of Attorney to sign petition, etc., etc " IT Attidavit verifying Power of Attorney " IS Affidavit verifying signatures to petition " 11> Affidavit verifying signatures to petition when signed under a Power of Attorney " -•> Memorandum of Agreement and Stock Book " 21 Affidavit verifying signatures to Memorandum of Agree- ment and Stock Book " 22 Ch. 191.] iNCoupouATiox nv lktteus patent. 231 ivn'& 15 1(> 17 IS 1!> 'JO 21 lO- (1) The applicants for incorporation, who must I'etition. be of the full age of twenty-one years, may petition^ the Lieutenant-Governor, through the Provincial Secre- tary, for the issue of letters patent. The petition of the applicants shall show: (a) The proposed corporate name of the company xn,„ot„ be with the word '"Limited" as the last word thereof; and.Xjti^tioli. such name shall not on any i)ublic ground be objection able, and shall not be that of any known comi)any. in- corporated or unincori»orated, or of any partiuMshij), or individual, or any name under which any known busi- ness is being carried on, or so nearly resembling the same as to deceive; provided, however, that a subsisting company, or partnership, or individual, or the person carrying on such business may consent that such name, in whole or in part be granted to the new company. And further provided that the name of a cornpainj which /"/•■< xai.K of dc- not made fur three consecutive years the annual simniKiri/ and, ■omimtly statement of its affairs prescribed hy this Act, may he i/irrn //i Jivun to a irhole or in part to a new company unless tlie defaulting co»(- }',any'.°'"' pany, after notice hy the Provincial Secretary, shows to the satisfactio)i of the Lieutenant-Governor in Council that it is still a valid and siibsisting corporation and e7ititled to the sole use of its corporate name. Amended by 03 V. c. 2:}, s. 1. Name— The naiuo should bo ns short as possihU^ consistent with expressing genernlly tlio nature of the company. In selecting the style and title for :i company, it is desirable that the name of the place where its head ollice is located should form part of its name. This provision has repeatedly proved, for obvious reasons, to have been adopted in the interest of all coneern(>d. The name of a company should, if possible, indicate its object. For the use of the words " lioyal," or " The Queen," in the name of a company the express c. The proof as to the proposed coriiorate name not being open to company, ought to be stated on the objection nor that of any other ' See Form No. 15, post. :!*: . ^ikJ i! V I. 5 ! I' ^ H; f ! 5 1 I 232 ONTAUIO COMPANIES ACT. [Ch. 191. Object. Head oHice and iilace of service. Cftiiital. Shares. Names of applicants, Directors. knowlftljio and belief of one of the applicants, n resident of this I'roviiu'e, or by a resident attorney or agent. The statement shonhl he verified (a). (b) The objects, simply stated, for which the com- pany is to be incorporated. Object.— This may he any object within the logislalive authority of the Legislature of Ontario except the construction and working of rail- ways in Ontario, the business of insurance and the business of loan and other companies under the I,.oan Companies Act. The definition of the powers sought sliould 1)(» clear and concise. It is now con- trary to the i»olicy of the government to grant a company power to carry on more than one business under one charter; it is therefore the practice of the Department so to limit them, unless a special case is shown for allowing a plurality of objects connected with one another. {(') The place within the Province of Ontario where the head ollice of the company is to be situated, and where its principal books of account and its corporation records are to be kept and to which all communications and notices may be addressed. Head Office.— This may, or may not, be at the same place as thpt at, or from, which the operations of the Company are to be carried on, thus, a company carrying on its operations in the District of Algoma may have its chief place of business (i.e., head ollice) in the City of Toronto. (d) The amount of capital stock of the comi)any; (c) The number of shares and the amount of each share; (/) The name in full, the place of residence and tlie calling- of each of the applicants. In giving the calling of the applicants do not use the descriptive word " Clerk," as that description is one reserved for Clerks in Holy Orders. ig) The number, and the names of the ajiplicanis. not less than three, who are to be the- provisional direc- tors of the company. Amended by 61 V. c. 19, s. 1. I^he directors must be shareholders, owning stock absohitcly in their own right. The Provisional Directors are the Committee who manage the Company's affairs up to the time of the first general meeting of the shareholders, when a Board of Directors is elected. (a) See Form 16, post. Ch. 191.] INCOIIPOUATIOX HY J.ETTEllS PATENT. 233 (2) Tlie petition may be similar to. but in its essen- I'otition. tial features shall comply with, Schedule " B " to this Act, and shall be accompanied bv a memorandum otMeion^' agreement, executed in dui>licate. which may be similar to, but which slmll in its essential features comply with Schedule " A " to this Act. The pptition, which may be put in at any time without Gazette notice, must state: — (a) The name, residence and occupation of each applicant in full, else it uUl be returned for completion; (h) The proposed corporate name o£ the Company, which must be free from objection; (c) The object of the Company briefly expressed in general terms, as, for example: " To manufacture and sell glassware." Incidental powers must ho left to the Act. The objects of a IMininjj Company should be expressed simply as follows: " Subject to Ihe provisions of The Ontario Mining Companies Incorporation Act and with all the powers mentioned in Section Four of the said Act, to carry on, in all their branches, the opera- tions of a mining, milling, reduction and development Company." If a Alining Company wishes to be a No-Personal Liability Company, the applicants must add the necessary words to that effect to the prayer of their petition. The objects of an Electric Light, or Tower Company should be expressed in the following words: " Subject to the provisions of The Act respecting Companies for supplying Steam, Heat, Electricity or Natural Gas for Heat, Light or I'ower, to construct, maintain, complete and operate works for the production, sale and distribution of electricity for the pur- poses of light, heat and power." The objects of a Street Railway Company should be ex- pressed in the following words: " Subject to the provisions of The Street Ivaihvay Act, to con- struct, maintain, complete and operate, Ijy the motive power of only, a street railway in the said of ." (d) The place at, or from, which the undertaking of the Com- pany is to be carried on; (c) The place in Ontario where the head-otlice of the Company is to be situated, and where its principal books of account and its corporation records are to be kept, and to which all communications and notices may be addressed; (/) The capital of the Company divided into shares; iji 5 i^' 234 Payments on shares. ONTARIO COMPANIES ACT. [Ch. 191. Petitioners to be Inina liile sul)- 8cril)eis for shares. ,'iiint of incorporation, if such b(> the fact. (y) Sifjnatures should be witnessed and proved by persons who are not petitioners, or directly intercsit'd in the formation of the Company. (k) Signatures must be veritied by statutory declaration, or by affidavit. (/) Signatures by attorney must be made under a specific, not general, Power, duly executed. (m) At least two signatures must be Avritten on the leaf, or page, M'hich contains the prayer of the Petition. The papers of application for Letters Patent may be executed beyond the Province of Ontario. Blank Forms of I'etition may bo obtained on application to the Secretary's Department, Toronto. (3) In case any amount has been paid in, on shanks taken, by transfer of property to a trustee, the Provin- cial Secretary may require such evidence as sluill be satisfactory to liim of such transfer and of the Ivind, nature and value of the property and the manner in which, and the person or persons or corporate body by whom the property transferred, or any other payment, is held in trust for the company with a view to its in- corporation. (4) Each petitioner shall be the bona fide holder in his own right of the share or shares for which he has subscribed in the memorandum of agreement. (5) The petition may ask for the embodying in the letters patent of any provision which, otherwise under this Act, might be embodied in any by-law of the com- pany when incorporated. Ch. 191.] INCOIJPOKATIOM HV r.KTTEItS I'ATKNT. 235 11. The Li(Mit('nant-(}ovorii<>r iji Council iiiiiy, f roin i-owd- to time to time, nulla' rofjfulations with respect to tlie lol-erMinS- , . , , . tidiis lis to lowing matters, \\7..\ noUci', utc. i iiractU'o of the Depart incut no notice is now required if tiic iiiiplicants arc nlilc to swear that no i.ul)lio or private interest will lie prejudicially affected by their incorporation. (li) The granting t<> one company ])ower to carry on more than one kind of undertaking; (r) The forms of letters patent. sui)plementary let- ters patent, licenses, notices and other instruments and documents relating to applications and other proceed- ings under this Act; ((?) The form and manner of the giving of any notice required by this Act; and such regulations shall be published in The Gazelle. 12. R<'for<' the letters ]>atent are issued, the ai)i>li-i'iciiinin- arv coiidi- cants shall establish to the satisfaction of the Provincial tionstoi).. ostablislicd Secretary, or such other officer as may be charged by him to report thereon, the sufficiency of their memoran- dum of agreement and petition, and show that the pro- {)osed name is not open to objection nnder section 10 oi this Act. The proof that the corporate name is not that of any other known incorporated or nnincorporateil c(jnipany ought to l)0 niido liy the affidavit of one of tlie applicants, a resident of this IM-oviuce, or by a resident attorney or agent. From the nature of the suliject sucli affidavit cannot be positive and should be expressed to be nuide to the best of the knowledge of the declarent. 131. (1) The Provincial Secretary, the Assistant Pro- pj-^^f ^.f vincial Secretary, or such other officer may for the pur- I'l'luUrUiiR poses aforesaid, or for any other purpose under this Act, ^'^'' take any requisite evidence in writing under oath, or affirmation. 23() ONTAUIO COMI'ANIKS ACT. [Ch. 1!)1, I !; n-i 4 IP •lil Xanio and iiiciduiital poworH i>f coiiipaiiy may I)t3 varied. Notice of issiiiii)< let- ters patent. Kev. .Stat. o. 1. MeetinR of company for oiRaui- zatiou. (a) Proof of any matter which may bo necessary to be made under this Act, may be made by statutory de- claration, or hy allidavit, or by deposition before tlie I'rovincial Secretary, or Assistant i'rovincial Secretary, or other otllcer as aforesaid, or before any justice of the peace or commissioner for taivinj,' allidavils or notary public, who, for thli purpose, are hereby authoriz-ed and empowered to administer oaths or to take allirmations. See U'lilv for lees allowed .Tusticc's, etc., t-tc. 14. The Lieutenant-Governor may j,mvo to the com- pany a corporate name wholly or partially dilTerent fronj the name proposed by the api)licants in their petition, and nuiy in the letters patent vary the powers of the company from the powers stated in the petition. 15. Notice of the granting- of the letters j)atent shall be given forthwith by the I'rovincial Secretary in The Gazelle, and from the date of the letters patent the peti- tioners and the i)ersons who signed the memorandum of agreement and their successors, respectively, shall be a corjjoration by the name mentioned in the letters jtatent and shall be invested with all the poAvers, i)iivi- leges and immunities which are incident to such cor- poration, or expressed or included in the letters patent and The Inlerprelaiion Act, and which are necessary to carry into ettect the intention and objects of the letters patent and such of the provisions of this Act as are applicable to the company. This notice is inserted in the Gazette without charge to the applicants. First Meeting (a). lO. (1) The provisional directors of the company' shall, by a registered letter addressed to each share- liolder, call a general meeting of the company to be held within two months of the date of the letters patent, for the purpose of organizing the company for the com mencement of business. Such first general meeting shall (a) See section 50 for Annual and other Meetings. CI). 191.] KIUST MKKTIN'fJ. 2:i7 lo the Ipany haro- hekl t, for I com Isliall be lu'ld at hiuIi convenient place as i\w xplain the reason why such re-division is, in the opinion of tlie Company, necessary and desirable, and (a) Form 23, post. [noiciiso of OHllitlll. :r 1« 2:}.s \\ ii rnpilal of tin- C'diu. piiMy, llic I'clitioii imisl inni i';i|iit.'il stiiriv of till' Cninpaiiy lias Itccii .siil)Horil)iMl ami ten per (ciilnin tliiTi'Dii paiii in; CJ) Tliat tin- H.v-lnw lias lit'i-n iawfiiiiy IMisscd )i,\ tile Itirccturs and sanctioiictl by ii vote of not less than two-lhinls in v.iiiic of tlu' slinrolioldcrs at a K>'iuTal nuctint; of tin- t'oiiiliaiiy (liihi ciillid for considtTiiiK the Hy-la\v; (."U 'rinil tlic capital of the ("oiiiiiaiiy is insullicicut for the piirposi-s of tin- Coiii- paiiy, anil (l> That Iho proposed increase is considered by the Company to be ri'ipiisiie for the due car"vinK out of its undertaliiiiK. -I. The par value of new stock must be the same as tint of the old stock, unless the old shiires are beiny expressly subdivided. r». The facts in the petition contaiiu'd unist be verified by affltlnvit to bo made by the Prosideiit and Secretary of the Company. (1. The signatures to the petition and the impression of the seal must be verilicd by alHdavit. 7. Aiiplication for the conlirmation of the By-la\v must be made within six months after its sanction. .S. With the petition, the Company must produce the orijrinnl By-law, duly completed, and must, by allldavit, establish to the satisfaction of the I'rovincial Secretary the due passage and sanc- tion of the By-law and the hoiui fide character of the increase or decrease thereby provided for. !». With tlio oripinal By-law must bo transmitted a copy thereof duly certitied as such under the seal of the (Company. Forms tu Incukask tiik Capitai^ STonc. By-law iiroviilin^' for increase I'orm No. ll.'i Allidavit verifying,' same and ]irovin>,' sanctioninpr thereof " '24 By-laws of company rc;:ulatinjr calling of general meetiii;;s " 2."» Affidavit verifying same " •Jd Notice in local newsiiaper cillinj.' >:eneral meetin;:. . . . " '27 Allidavit provinji due callinj; of meeting and verifyin;: notice in local pajicr " lis Notice in (tularin tin,ir where by-law for the purpose has been passed and verify- ing' notice in local paper and Ontario llazcttc. . . . " 20 I'etition for Supi)lomentary Letters I'atent " .".(t Aflidavit vorifyinjr signatures to petition " '\l Affidavit re.specting bona fiiiv character of increase.... " '^'2 18. (1) The company, if it sees fit at any time, may by by-law provide for the decrease of the ca[)ital stock of the company to any amount which it may consider Vh. \[)\. ALTKltAllMN (t|- CAI'irAh STOCK. 2M!) Miilliciciil for llif iiiitlrrtiik'ni;; of liio coniitiiiiy iiiul .idvisiilth'. (!') The bv-lii\v sliiill ilcrliirc llic nmiibcr iind value "vinw for tliiil pin- of IIh' sliJircs of llic sslock iiH so ilccrciiscd ; mikI I lie ill i'"^»^'- lotiiM'iit llicrcof, or llic iiilc or rules l>_v wliicli the siiine is lo l)o iiijule. (M) Tlio liiil>ililv of Hliiii-elKtlders (o persons who iii-e. l■illl.ility ill IIm' tmie (lie sloek IS uecrciiseil, ('redilors ot I lie coin- iioiiiiis on (Ui'iuiiHe. piMiy, sliiill iH'iiiiiin its llion;;li (lie s(o<'K luid no( Iteen iierreast'd. 'J"o l>Kci{KASia Tin: Capital Stuck, iiif iH'ccssiiry iis fur iiimMisiii;; the ciii)!!!!), niul those ,i:iv('ii fur thai ihii'Ikisc iiiay lie iiiliiiitcd. 1!>. The conii^inv niiiv at iinv lime, 1»v 1)V liiw, iii'o- n-'iiviMon vide for (he re-division of the exislin^- slnires in(o shiires of smaller or liir<;'er junount. so. -•> 'jr. "jf. 27 'JS 'J7 UO. No bv-liiw for incroasin'' or deereiising the eiipi- r-v Uws to lal stock of the compjinv. or re-dividinji' the shiires, shall ""i'"'' '>y ' ' ^ mpplc- hiive iinv force (»r ell'oct whiilever unless tin[»lenientary letters ptilcnt lo (oiifii III Ihe siinie. 2'.' may stock Isider "i AVitb the iietilion the compiinv shall ])roduce the nyiaw, l>v-i..\\ jind estiiblish to the sjitisf.iction of tlu.' IM'ovinciiU pio'iiuiii Willi pt'll- Sccretary, or of such other oflicer iis may be clmrj^-ed by tiou. him to lepoi't thereon, the due jiiissajie and sanction of (he by-law. iir if the jtetition is in respect of the in- crease or decreiise of ca]>it!il, the hona fide character of Ihe increase or decrease of capital thereby provided for. 240 (IrantiiiR of Hiniple- inoiitary letti-i'H l)attiiit ONTAIUO COMPANIES ACT. [Ch. 191. Notice thereof. Effect of Rlic)c letters Viltent. (.'V) I'pon due jnoof so mado, the Lioiitonant-Gover- iior in Council may by snuplonuMitaiy IoIIjms patent con- firm the hy-hiw, and, with respect to an increase or de- crease in capital, may, with the consent of the «'onipany, by the supplementary letters jKitent, fix the amoiint of such increase or decrease at such sum as to him may seem proper; and notice thereof shall be fjiven forth- with by the Provincial Secretary in lite Gazelle; and thereupon, from the date of the supplementary letters patent, the shares shall be re-divided, or the capital stock of the company shall be and remain increased or de- creased, as the case may be, to the amount, in the man- ner, and subject to the conditions set forth by such l>y- law and supplementary letters patent; and the whole of the stock as so increased or decreased shall become subject to the provisions of this Act in like manner (so far as may be) as though every part thereof had origin- ally formed part of the stock of the company. I'referen- tial stouk. JfN mu SjieciRl rifjlitsof preference HliarehuUl- urs. I'liani- IIKIllS KIIIIC- tioii re- (liiirod. Special proviso. 22. (1) The directors may make a by-law for creat- ing and issuing any part of the capital stock as prefer- ence stock, giving the same such preference and priorit.y as respects dividends and otherwise over ordinary stock as may be declared by the by-law. * (2) The by-law may provide that the holders of sliaros of such preference stock shall have the right to select a certain str led proi)ortion of the board of direc- tors, or may give them such other control over the affairs of the company as may be considered expedient. (3) No such by-law shall have any force or effect whatever until after it has been unanimously sanctioned by a vote of the shareholders, present in person or by proxy at a general meeting of the company duly called for considering the same, or unanimously sanctioned in writing by the shareholders of the com])any; provided, however, that if the by-law be sanctioned by three fourths in value of the shareholders of the company, the company may, through the Provincial Secretary, petition Ch. 191.] ALTKUATION OF CAI'IIAL STOCK. 241 S Of it to irec- the lent. effect ioned or by all<'itr<>v- iiij? the said by-law, and the Lieut enant-Govi'iiKtr may, if he sees fit, approve thereof, and from the date of siicli approval the by-law shall be valid and may be aeted upon. (4) ITolders of shares of such preference stock shall ui-iits ami , , 1 1 T • 1 . liiibilitii's be shareholders within the meanint; of Ihis Act, andoi houuis shall in all resj)ects i»ossess the rijihts and be subject toiuco stock. the liabilities of siiai-eholders within the meaniiii; of this Act, ]>rovided, however, that in respect of dividends and otherwise, they shall as ajjainst the ordinary share- holders, be entitled to the [trefercnces and ri}j;hls jiiven by such by-law. (5) Nothiiifi' in this section contained or done in pur-Ri^i.taof •suance thereof, shall affect or imi»air the rijj;hts of credi-noiVm-'" tors of the company. (()) TJiC ill rectors of a cornpunii wliirli Ims Iierefofore issued or wjiy /lereafter issue preference stock uui)/, for the purposes of canceU't i\(i sucJi p reference-stock or ports there- of, from time to time, puns lii/-Utu's procidiuf/ for the pur- chase or acquisition lii/ the comp((i)>/ of such stock or parts ihereof ivith the consent of the holders, and for the ca ncel- r^m•v^\^\■ lation of tlw stocl: so purchased or aojiurcii, avd /o/'f.T.Micc the reduction pro rata according to tlie aniount of stock so' cancelled of anji reserve set apart, or required to tte set apart, in respc<-t of such preference-stock, l)ut no sucit h>/- lau'shtdl heiudid or acted upon unless and until t/te same has l>een sanctiowd hi/ a rote of at least two-tliirds in value of tlai sluireholders of t/ie compani/ present in per- son, or represented by pro.r;/,at a speciid (feneral nieetintj dull/ callcil for consiilerni;/ the same, and unless and untUsuch h>J-lav} has been confirmed b;/ suppleinentanj letters patent. (7) At any time not more than three montlts after tlw sanction of such bii-hnr Ini the sluireludders as afores<(id,^"''"^>^^'y •' . ." . .' ' letters piit- the comiHtnii ymni petition the Lieutenant-Governor nj <;iitto<>(.ii- I '^ .' / _ tlnii CHii- Council, throui/h the Provincial Secretary, for the issux oy'^eiiatious. W.S.D.JI. — It) hluck. Siipiilo- I 242 ONTAllIO COMPANIES ACT. [Cli. 191. supplementary letters patent to covfinn the sariir. With the petition, the company shall jiroduce the tiij-law auy him, to report (I sanction P i(/e \t the bona tie ndid, and may be actal ujton. Notice of the issue of supplementary letters patent sjiall l>e (jiven by the Provincial Secretary in the Gazette. As ainoiuled by G.'} Vic. c. 28, s. 2. Use of the Woiu) "Limited." 2JI, (1) Whererer any office or pi ice > n wJiicli l>usi- nessof till' com pan ji iscorricd on is i ndlcated by an y sly n , name or other mrams on the outside thereof as Ix'ini/ a phice of tiusiness of the company, the company shidl het-p in a conspicuous 2'>lace on such outside, in. letters easily legible, the name of the company, with the tcord " Lnnltcd " Use of (IS the last word of, or as the first word after, such name, wonl '• Ijiiiiited" ( ill t)tlu.'r places 'and the name of the company, icllh the word " Limifed " ((s the liisf word of, or the jir.sf wont after, such na me,shid/ rs easdy d appear in a conspicuous posinon, ana n leinlile, — letl< <(i - (a) (fn Its corporrde seal ; (b) Ii) all ad vertlsements and other oflclal jadAl lions of the company ; (c) In all l>llls of parcels i>r Inroices of the com pony; (il) In all written contracts and andertaliinys of the company ; (tj) In the company's slijnidu. re to a ny bill of c.tchanye, pro))> Issory no'e, endorseuieni cheque, order Jm' money or yoods. Ch.l9l.] L'SK OF Till': WOIU) "LIMITED.' 248 i ,/" mil ICll - Uir fin- ('2) // shall he the dah/ of the lUrectxrr, iiunxif/er, offi- cer or other e)iiploi/ee of the com/Kun/ icho — (a) PiiM'tHlu'fi or caiisex to l)c pahlixlwd ii,n// snrh od- vcrtmnnent or other officud 'puhlirotioii ; (1)) Makes out or causes to l>e Duula oat anij saclt Ijdl of parrels or iiiroiee ; (c) Makes on behalf of the compani/ av}/ sm-h vrittci) contract or HHdertakinf/ ; or (<1) Sifins in the name of the conhpai)'/ avij siidi l>d/ of excltaiuje, promls.sor)/ vote, ei>dorseniriit, cheque, onler for in.onei/ or ijoods — io comphj wdh the fore(join(/ prorisions of this si'cfioii. I'ioyiso. Provided th((t irJiere the word " Compan//," " ('lid>" " .l.v- socidtioii " or other e(pi ivaleid word forms part (■/ the compdii i/'s corporate aame tli,e word '' Li m ited ' need not appear in fall , t>nt an atittrer'iation thereof, of n-hieh tlie letters "I '" ," " Associ((t i(rn " or other c/n i ndent icnrd does not form, port of the corpio'ate na.me the a-ord "Limited " sh(dl appear in fall and, in, letters of suhsia ii- tialli/ the sana'. size as the letters in, the rest of sneh niune. Prodded farther that sta ui pi la/, irritini/, prinlin;/ or othera'ise niarkinf/ apon n. (3) h'reri/ companij ii nd every director, manager, ofiieer w-mOty. or other employee niakiny defaaJt in complyi i^y icith the foreyoivy procisions of tJiis section sloill incur a penallji not exceediny ten dolla rs for each ami erery offence, i^'o- I'loviso. rilled that otter loiciny tteen con acted la an olfence nnder thls sect ion the offender apon a sidisefjaeiil con cict ion for an offence ander this section shall incar a pemdti/ not exceediny one handred dollors. (4) This section, shidl not apply to any company not sot in, \\^- 1 • ■ ■• -J I'll I ' !''> wlii'io harim/ yam for its purpose rovision of any stidute relating to the use of the word " Limited" or any abbreviation thereof are Jiereby released and discharged. Provided, hoivever, that this sub-section shall not apply to any action or other proceeding in whicli, judg- ment has hitherto been rendered. Provided also that in any pending action or other proceeding the Court in or before ivhich the same is pending may make such order as to costs ((s to such Court may seem just. (As amended by iVd Vic. c. 23). Change of Name (a). 24. Ill case it is made to appcnr to the satisfaction of the Lioutenaiit-Governoi' in Council that any coni- l)any is incorporated nndei- a name tlie same as, or so similar to that of an existing company, partnership, in- dividual, or to any name under which any existiiifj: busi- ness is being carried on, as to deceive, it shall be lawful for the Lieutenant-Governor by an Order in Council to change the name of the company to some other name to be set forth in the order; and no such alteration of (a) The nnnie of nny company may ho ohaiiRod uiulor the Act ('utitU'd " An Act respecting the changing of the names of Incor- porated Companies," post. Ch. IDl.] INCIDENTAL POWEKS OF COMPANIES. 245 name shall alToct tlio rights or obligations of the coni- I>any; and all i)ro(e('dinf»s may be continued and com- menced by or against the company by its new name, that might have been continued or commenced by or against the company by its former name. IXCIDF.XTAL I'UWKRS OF CoM I'AXI ICS. 2»>. The company shall, in addition to its other powers. ])ossess i)ower: (a) To alter or change its common seal at pleasure; (h) To take over, acquire, hold, use. sell and convey such ])ersonal pro])ei-ty and movables, machinery, ti-ade- marks, patents, licenses, and franchises or rights (here- under as mav be deemed necessai'v or exitedient i'oi- the pui-poses for which the couipany is incorporated; (c) To erect on its property such works, shojts, mills, buildings, houses and structures, and to make such iin- ]'rovements of what kind soever as may be convenient or necessary for the due carrying out of its undertaking; ((/) To construct and maintain, or aid in the con- struction and maintenance of such works and improve- ments as may be deemed necessary, or advantageous to the due carrying out of its undertaking; (r) To exercise and enjoy all the jti-ivileges and im- munities, and to do all acts re(|uisite. or incidental to the due carrying on of its undertaking; (/') To carry on any bran<'h or branches of business incidental to the du(» carrying out of llie objects foi' Avhich the company was incor|»orated, and subsidiai-y tlu'reto. and necessary to enable the comjiany ])rofitably to carry on its undertaking; (//) T(» ac(|uire by purchase, lease, or olhei- title, and to hold, use, sell, alienate and convey any real estate necessary for the carrying on of its umlertaking, and the <'omj>any shall upon its incoi|»oralion become and be invested with all the pro[>erty and rights, i-eal and l/Crsonal, theretofore held by or for it i ider any trust created with a view to its incorporation. I'owcs ii;- <'i(li!i;t to iiiciirii. iva- tiar<-el of land, or inten'st therein at any time acrovisos. Stock, Calls. Etc Allotineiit of stock. 20. If the letters ]>atent or special Act make no other definite provision, the shares of stock of the com l>any, so far as they are not allotted thereby, shall be allotted when and as the directors by by-law or other- wise ordain. stock, per- ^^' 'J''"' shares of stock of the company shall be tate^'''^ deemed ]»ersonal estate, and shall be ti-ansferable on the books of the company, in such manner only, and subject w '4^- i €h. 191.] STOCKS, CALLS, KTC. 247 to all such coiHlitions Jind rcstridious Jis l»_v this Act. oi' l»v the special Act. (tr hv I lie Icllci-s patent, or by- laws of the company may be piesciibed. 2S. Tlic (liicctors may refuse to allow the enlry. in any such book, of any Iransfer of shai-es of stock whereof the whole amount has not been paid in; ami whenever entry is made in sm-h book of any liansfei- of stock, not fully paid in. to a i»erson not beinji' of apparently sufti- <'ient means, the directors ]»i-esent when such entry is authorized shall be jointly and sevei-ally liable to the creditors of the company in the same manner and to the sauM' extent as the t i-ansfei'riMrotest ajiainst the same, and within eijiht days there- after causes such jM'otest to be notified, by re^^islei'ed letter, to the Trovincial Secietai-y. such . Xo transfei* of shares of stock, unless made b\ TrHiisfer VII lid only sale under extu-utiou. or under the order or judiiuieut of after s(,me competent Couit in that behalf, shall be valid for any ]Mir]iose whatevei'. save only as exhibitin;i the rights of the ]»arties theret(» lowar' discharjic to the company for any dividend or nn^ney payable in i :i 1 J' 11 - 1 ■1 \t 248 ONTAUIO COMPANIES ACT. [Ch. 191. Calling in iiiKtiil- llltilltS. I'csiK'ct of such slijirc. wlu'tlicr or not iioti<'0 of tlic tnist liJiH been j;iv('n to tli<-' company; and llio conipany shall not be bound lo set* to the application of the money paid upon Hucii I'cceipt. 32. The directors of the com])an.y nniy call in and demand from the shareholders thereof, respectively, the amount unpaid on shares of stock by them subscribed or held, at such times and places and in such payments or instalments as the letters patent, or this Act, or the by-laws of the conij)any require or allow; and intei'est shall accrue at the lej;al i-ate for th(> time beinj;*, ni»on the amount of any nnpaid call, from the day appointed for payment of such call. 33. Not less than fen jx'r centum upon the allotted shares of stock of the company shall, by means of one ciMit'with- or more calls foi-mally made, be called in and nnide juiy- able within one year from the incorporation of the com- pany; the residue when and as the by-laws of the com- pany direct. CallH year. Enforee- meiit of liayiiu'iitdf calls by action. Forfoituio ot sliares. 34. The companj' may enforce paynuMit of all calls and interest thereon by action in any Coui't of compet- ent jurisdiction; and in such action it shall not be neces- sai'y to set forth the special matter, but it siiall be sulti- cient to state that the defendant is a holder of one share or more, stating the number of shares, and is indebted in the snm of money to which the calls in arrear amount, in respect of one call or more upon one share or more, stating' the number of calls and the amount of each, whereby an action has accrued to the com[)an,v under this Act; and a certificate nnder the seal and purporting to be signed by any otticer of the company, to the effect that the defendant is a shareholder, that such call or calls has or have been made and that so much is due by him and un])aid thereon, shall be received in all Courts as prima facie evidence to that effect. 35. If after such demand or notice as by the spe<'ial Act, or by the letters patent or by-laws of the company Ch. 191.] IJAUIIJTIKS, KTC., or SIIAUKIlOhDKKS. 240 Tnisieo-, etc., limy vuU'. .Mi)i I(,'iiL:(ir ol stock iniiy vote. .Iiiilit lioldi'vs of stock. iai is prescribed, jiiiy ciill iiiiidc upon any sliarc or shares is not }>aid witiiin such time as by sucli Act or by such letters patent or by-laws may be limited in that behalf. tlie directors in tlieir discretion by icsolution to thai effect, recitinj; the facts and duly recorded in their min- utes, may summarily forfeit any shares whereon such payment is not made; and the same shall thereupon be- come the i»roper(y of the comi)any and nuiy be ilisposed of as, bv bv-law or otherwise, tlie conii»anv ma\- oi'dain. •JO. (1) l"]vei'y executor, adminislratoi", j^uai'dian or Irustee, shall represent the stock in his hands, at all meetings of the company, and may vote accordln<;ly as a shareholder; and every i»erson who jtledjics his stock may nevertheless represent the same at all such meet- ings, and may vote accordingly as a sliareliolder. (2) If stock be lield jointly by two or more persons. any one of tliem present at a nieeting may in tlie absence of the other, or otliei-s, vot(> thereon, but if more tlian one joint stockholder be present or be represented by l)roxy, they shall vote together on the stock jointly held, LiAiuLiTiKS, Etc., of Shareholders. 5$7. (1) Eacli shareholdei'. until the whole amount of his shares of stock lias been paid up, sliall be indivi- dually liable to the creditors of the company to an amount equal to that not jtaid \\\) thei'eon, but shall not be liable to an action therefor by any creditor before an execution against tlie coni]»any has been returned un- satisfied in whole or in part; and the amount due on such execution, but not beyond the amount so unpaiil of liiH said shares of stoclc. shall be the amount recoverable with costs, against sucli shareholder. (2) Any shareholder may ]»lead by way of defences setoir. in whole or in part, any set-oil" which he could set u]» against the company excejtt a claim for unpaid divi- dends, or a salary or allowance as a president or a direc- tor of the company. Liability sliiirt'liolil- I'l's. t I t ! ii 250 ()NTA]{I() COM PAN IKS ACT. [Ch. 1S)1. SliariOiohl- ins not lilllllu l)t>- yiiiid IllllOIIIlt uii|iiii lialdlity as a siiarelKddei-; but the estates and funds in the hands of such person shall be liable in like manner and to the same extent, as the testat(U' or intestate or the minor, ward, or person interested in the trust fund, would be, if V]\\u*y and comjtelent to act and holdinji such stock in his own name. Mortgiiyues JJ1>. >,'(» ]»erson holdinj; shares of stock as collateial security, shall be jtersonaliy subject to liability as a shareholder; but the ]»eison transferi'inj;- such shai-es as such collateral securitv shall be considered as hobliu"' the same, and shall be liable as a sharelndder in resjiect theri'of. DiKi-: croRs AM) 'riii;iK 1'()\\i:ks. K TC riDUvd of dircctois. Provisional tiiroftors. Nullifica- tion of directors. 40. The alfaii's of the company shall be manap'd by a board of not less than three directors, who shall be elected by the shaicholders in general meetiuji of the «(>m|»any assembled at sonu' i)lace williiii this prov- ince (//). 41. The jK'rsons named as ]»rovisionai directors in the special Act oi' in the letters patent shall be the directors of the com]>any. until rejtlaced by others duly elected in their stead. 42. No i»erson shall hold olTice as a oii (Tiisc !»» Im' ;i (lircfior. 'IJl. Ill Tiir clt'ctidii (tt (lircciMis sliiili (jikc |»lii((' at Voni tlic iiniiiial iiicci iii<^. ill! Ilit* iiiciiiIm rs ol llic Ixiard rrtir iiijr. and lil" utlinwisc (iiialiticdi licjii;; t'lii^iliii' Wn- re- elect inn. (•li'cti. (1) A coini»aiiv niav h\- h\-la\v increase (»r d'-- ( iiiniK'<'i>y ' • ... l.v-lllWOf <-rease the nuniher of directors, or niav chan;ie the niiiun.iof ilirci'tms eoiiipanv's head ollice in (Milario. orcitiiuad nllil'C ill IL'I Xo hy-la\v. for either i.i liie said purposes, shal he valid or aaiiy, has heen 1 ransinit ted to llie Provincial Secrelai-y. and also, has heen ]»uhlislied hy the conii»any (»nce in the (lc:rUi\ {■\) In case the head .:H V 1 ONTAIllo co.MI'ANII.S AC'I". [Cll. iUI. j;;iv<' Tiolicc of llic I'fiil ill such iicwsicipci'H jiikI for siicli liiiK' iis tlir i'c<:iil;itiMiis iii.-kIc iiikIci' snlioii II of this i\' iiy law ccrlilicd imdrr the (•(iiii|iiiiiy"s seal and duly vcrilicd iiiusL lie Iraiismilli'd to llic I'mviiirial Srrrclai'y. I'lMcif llial till" li\ law was imlillsln'd (nicc iii 77i' (tularin (lii:(llr, and ill lilt' CISC of chalice (if coiniiany's head (iliicc, twice in ii ucwsiiapcr piililishcd in llic Idcalily in wliicli the opcralimis of the coiiipany are carried on, iiid in the locality lu which the company pro|Mise removing its head ollice ((/», should, in the interest of the company, and to avoid future iiueslion as to due coinpliaiK.'e with llie provision of the Act, also lie furnished. A coi)y of the notice, (MiL from the (la^itlr, and from the local ncwspaiicrs, where a notice therein is rc(iuircd, oii;.'lit to he :iltachc(l thereto. Fdit.Ms Td Inciuoasic Till'; Nr.MiuoH m- 1 >iHi;("rous. I'.y-law increasiiij; the nimilier of directors l''nriii Xo, ol AllUla\it vcrifyiiijj; liy-law, and iiroviii,!,' sanctioning; of same " -4r Notice pidilishiiij,' iiy-law in Ontuiia (iiniU< " •">•"» Atlidavit verifying; same " •>'> By-laws of company reuulalintr the cailintr of a irciieral nieetiiifjr " -•> Adidavit verifyint; same " -'i Notice in local newspaper caliiu:,' ^.'ciicral niecliim.... " -7 Allidavit iirovint; due caiiini;: of meetini: and verif.vini; notice in local paper " -•*' Notice in OiiUnii) (limtlr callin;; ;;eneral iiwcliim- " -~ Aflidnvit iiroving duo callin;; of general meelinii whei'e no by-law for the purpose has been iiassed and verify- ing notice in local iiaper and Oiituiiu (la.::iltr " ll'.l To Decrease tuk Ni:.MRi;n oi^ Dirhctohs. The sanio forms are n(H'('ssary as for incrciisint:', and those given aViove may be adapted. (a) According to Itegulations made under sec. 11. C"li. HM] i)im:i'i(^i(s and tiikiu I'owkus, ktc •2r>:\ VuuMH I'Oii ( 'iiANdi.Nd Tin; IIkaii Uki-icI': By-law \vs|ia|ii'i- calliiij: ki'IhtiiI iiii'ctiim-. . . , Alliiia\ii pi-nviim: iliii' caiiiiiK '>!" nu'i'linir ami vi'i'iryin;: ii()li<'(> ill local paprr Niitiic ill (hitarUi Uii:'ilt<: calling; Kciicral iiici'liiij: Alliila\ii pi'n\iii;,' due cailiii;: dI' general iiit'cliii;' wlwM't III! I)y law I'lir ijic piiriinsc has lii piissi'd, and vt'rilyintr nniicr in lncul paiirr ami Oiihiiin Unzillr " 1 in. Tlic (lircclois of the cotnpiiiiv sliiill liavi- full '"V',"^, ■ ■ II III III ])()\vci' ill iill things to iidiiiiiiistcr tlic iifViiirs of tlit> coni- Itiiiiy iiiul niiiv iiiiikc, or cause to be iiiiulc. for the coiii- j>iiiiy, any dcsniptioii of coiitrart wliidi tlic roinpany inav b\- law enter into. ml iliilioH of ilhcc- tlll'S, Stuck 4T. The (lireciois may, from lime to time, maki- ii>-iiiws by-laws not contrary io law. or to the letters |)ateiit of the c<»mitaiiy. or to Ihis Act. to regulate: ((t) The allotment of stock; Ihe making of calls Hiereon; the i)aymeiit thereof; the issue ami registration of cert iticates of stock; the forfeiture of st(»ck for iioii- ]»ayiiient; the disposal of forfeited stock and of the pro- ceeds thereof; the transfer of stock; (h) The declaration and iiaymeiit of dividends; {(■) The term of service not exceeding tw(» years, and the amount of Ihe stock qualitication of the directcu's; {(]) The a]»i)ointment. functions, diitii's and removal of all oHicers. agents and servants of the company; the security to be given by them to the comj»any; and theii' remuneration; (<') The time at w liicli. and jdace where the general Meetings. meetings of the company shall be held; the calling of Divi'lcii^ls. Dircctois, scivicc,uti;. onifiLTH. • Ml ^ 254 ONTARIO COMPANIES ACT. [Ch. 191. Fines. Coiuliict of attaiis ("e)' oriiU >• iiiiftnua- .ioii of l)y- laws. I'.y-laws may bo varied. Payment to presi- dent or directors. inoctiiifis. icfi'tilai' and siiccial. of the board of dircctoi's, and of tlic coniiKiny; llic (|iioi'inn; llw rcMinii-cnicids as iu i)renallies and I'oi'feilures adniiltin<;' of rej;ulalion by by-law; and ((/) The conduct in all other particulars ()f the utTairs of the coni]>any; and may from tiin( to tinu' re|»eal. amend, or i'e-ei>aci the same; but every such by-law, and evei-y repeal, amendment, or re-enactment thereof, unless in the mean- time contirmed at a fi'eneral me<'tin^- of the company duly called frox_\' at a {i'enei-al meelinj; of the company duly called for considerinj;' the subject of such by-law. the directors of the cctmpany may: (//) Borrow money u])on the credit of the comi)any; (h) Limit or increase the amount to be borrowed; 'ij.lh CIl.'lOl.] ANNUAL, r.KXEUAL ANI> SIMKMAL MEKTIXOS. 2ryy it or licet by Ictors Itanv KCB (r) rssiic the bonds, dcbciil iircs, or other sccuvitics !*"^^''V*" , ' issiK! bonds of (ho <'onii)iiiiv Cor tho lawful pninoscs of the rotnpaiiv. '"'''''" ". ■ • ' ' I . ' tillt'H. 1111(1 and no other, and may pledj^c oi- sell the same for sucli Slims and at such prices as may Im- (h-eu'ed exitedieiit or be necessary; bill no such bonds, debentures, or other securities shall be for a less sum than (»ne liundred l- lars e.'ich. and (W) If vpot liecate. niort;'aress provisions iiiMoHcof I U'i!ti(in. sm-h behalf, by the spiM-ial Ad. (»r by the letters |»ateiit or by-laws of the coiiij>any. notice (»f the lime and jdace for luddiii^ m]»any. if these ditVer; and also, in the case of c(unjwinies baviiiii a capital exceedin;;' .f.'5. ()()(). either by jMiblishinj;' the same in Tlu' (lii:rllt\ or by mailing' llu' same as a re;j;istered letter duly addressed to each share- Indder at his last known jxtsl (dlice address at least ten days jd'tnious to such meeting'. ♦51. A 'i'eiieral meeting', to be known as the annual^"""'"' meetinji' of the ctmipany. shall be lu'ld al such lime and jdacel/') ill each year as the letleis |»aleiil or by-laws (tf the (MMiipany may provide, and in defaull of such pi<»vi- sioiis in that behalf the annual lueetin;^ shall be held on the fourth Wednesday in .laniiary in every year, al such place as may be determined by lIu' direciors. 52. The dire,ii'c't. Duty of ro- ]»os<'(l t(» be calh (1, and siiall be left at the head-olTlice of the conii>any. ♦54. T'pon the I'oceipt of sn"h recpiisition the direct- ors shall forthwith ]ti'oceed to convene a sjtecial <;eneral nieetin.ii'. If they do not ]H'oceed to cause the same to be behl within twenty-one days from tin' retpiisitiiMi was h-ft at tiie headollice of the i'om])any the i'e(iuisitionists, or any olhei' shai'eholders amountin;; to the required one-lenth of the subsciibed capital stoci< of the coniitany. may tiiemseh'es cctuvene such special general meetinji'. <;i l\ •1; ■if. ;. Si, : N.,ti.-ofor 55 rp^ _ \\^^. ^\.^y ;,,ni Oic houi- of meetiii";-. and the ji'eneral natui'e of the business to be considei'ed. sliall be jiiven to the shareholdei's by the directors, or by tlie re(iuisi- tionists. as the case nmy be. in mannei- mentioned in section 50 of this Act. or ro.\y. at the tinn> when the nieetinj; proceeds to business; and such quorum shall be ascertained as follows, that is to say, if the shareholdei-s at the tinn* of the meetinji' do not exceed ten in nnniliei' the qnoi'uni shall be three, if they exceed ten there shall be added to the above (pioi-nm <»m' for every foui' ad(b tiomil sharehobb'rs nj) to tifty, and one for every ten additional shareholders after fifty, with this limitation, that no quorum in any case shall exceed twenty. CIl. I!M.] AN'N'fAL, (iK.\i:i!.\l, A M ) M'F.CI A I, M I;K 11 \( iS. ^T. If williiii one lioiir I'l'din I lie fniic Jippoiiilcd l"<»i" JJ.'.'ii",'',"' such spcciiil jiciicriil iiicci iii;^'. ciillcd ii|i()ii or ptiisiiaiil lo '""iiii-- I'CMinisitioii iiforcsiiid. ii (|U(»riiiii is not |)r('S('iil, tlic uicct- iii!'- sliall lie dissolved. 2."7 ^•H. The president ol Die coniitany slinll preside its i'i,.si,iii,^ ohairiiiiui ;il ev<'iy jieneriil nieeliii;j, ol Hie r(»iiip;iny. »I1>. ir there is no j»i'esi(h'iil . »»i' it' :it ;tny meeting' he''[';|^'.''",'^"^;^ is not pi-escnl williin lirieeii niimites jil'tei- ihe tinie ap- '^'''^'^J^'j'']^ pcrriled for hohlint!," the ineetinii-, the sharehohhTS pres- ( 111 shall choose some one of tlieil' Illllllher to he cllilir- uum. an.v 04>. Tin rhaiiiiian niav. with the consent of i he \'ii"iinr- 1 ill 11 1 i>^- meeting', and suhject to such ronditions and icsi lict ions '"I'-'Mt. «s tlu' iii(<'tin}i" may decide ailjoni-n any nieeliiiii from tinu' io ('tie, and from jihu'e to |)lace. • I. Ai anv j'cneral nieelinu', unh-ss a iioll is ih' Cniccdmc niaiided, a declaration by the chairman that a resolniion iminMs. has Iieen carried and an entry to that elVecl in the pl-oceediliys ompany. every v. t.?. shareh(d(h!- shall be entitled to as many \o*es as he holds shares in IIh' company, and may \(»t«' by proxy. rt4. No shait'lnddei- beiny in ai'i-eai- in rt^siiect of {inv^'""' ''"''' rail shall be entitled to \ote at anv meetiu"' of the com',""".''"'' • -^ to vol**, I>any. W.S.llM.— 17 wr 258 ONTARIO COMl'ANIKS ACT. [Ch. 191. I' Mode of in- corpora- tion, etc., how to 1)6 set fortli ill leK'il pro- ceediiiMs. Evidoiico of by-laws, Antlienti- catioii of siiiuinous and no- tices. Service of notices. Time of service. Proof of Kervice. Notices, Actions, Etc. C5. In liny action or other i)rocoedin}?, it shall not be requisite to set forth the mode of incorporation of the coi:ii)any, otherwise than by mention of it under its cor]»orate name, as incoritorated by A'irtue of a special Act, or of letters ])atent, or of letters patent and sup- ])lementary lettei's ]>atent, as the case may be; and the letters j>atent or supplementary letters ]»atent them- selves, oi* any exempliti<*ation, oi' copy thereof under the Great Seal, shall be conclusive proof of every matter and thinjT therein set forth. an. A co})v of any by-law (a) of the company, under its seal, and luirportinp; to be sifjued by any ofticer of the comj)any, shall be received as priina facie evidence of the by-law in all Courts in Ontario. 07. Any wi-it, notice, order or iiroceedinjj; reciuirinj;' authentication by the company may be si<>ned by any director, manager or other authorized ofticer of the com- pany, and need not be under the seal of the company. OS. A notice to be served by the company ujjon a shareholder may be served either i)ersonally or by send- ing it throujih the ]>ost, in a rejjistered letter, address. A notice or other document served by post by the company on a shareholder shall be held to be served at the time when tiie rej^fistered letter containing; it would be delivei'ed in the ordinary coui'se of ]»ost; and to ]»r<>ve the fact and time of service it shall be sutti cient to prove that such letter was properly addi'csscd and I'efiistered. and was put i» o the lUMt-ottice. and the lime when it was put in, ami the tinu' ictpiisite for its delivery in the ordinary course of post. (o) For set of l).v-lii\v.s suitable for oonipauy's use seo post. 1. Cli. 191] BOOKS TO BE KEPT AND WHAT TO CONTAIN'. 2o9 \t by I'vcd »f? it and sutti 'sscd I the V its TO. Any description of action mav l)c prosocutcd scions i)t- ■ • tweeii com- and niain1ain<'d between the coniijanv and anv share- i''i'>.vand • ■ Kliari!- holder tliereof, and no shai-eliohler sliall. by renson of '"'IiIlis. belli},' a shareholder, be incompetent as a witness therein. IJooKS TO IU-: Kept axd Weiat to Coxtaix, Tl. The conii>any shall canse the secretary. <»r sonieKeooid other omcer especially charjicd with tlial duly, to Keepk.i>tHii.i a book or books wherein shall be kept recorded: — cuutaiu. (a) A copy of the letters ])atent incorporatin<;' the company and of any sn]»]»lementary letters ]»atent issued to the company; and if incer- sons who are or have been shareholders in the com- pany.i {(■) The j)ost-ol!ice address and calliii}^ of » "'ery such I)Ci'Son while such shareholder; {(]) The number of shares of slock held by each shareholder; (e) The amount i»aid in, and I'emainin^ unj»aid, re- spectively, on the slock of each shareholder; (/) The date and other particulars of all transfers of stock in their order; and ( i..r shall knowinji'ly make or ;issist to make any untrue eiiti'v .ntiies. in any such book, oi' shall refuse or nejilect to make ;iny l»roper entry therein; and any ]»ers(ui violnt inarty a<;j;rieved may have sustained. The Judjie may. in any ]»roceedinj? under this section, decide on any ques- tion relatinji- to the title of any person who is a i)arty to i)(.cisioiias such ]>ioceedin<>- to liave his name entered in or omitted to mo. fj.Q,ji ^]j(3 g{|i(j books of the comi)any, whether such ques- tion arises between two or more shareholders, or allejied shareholders, or betweeu any shareholders or allejied shareholders, and the company, and, jicnerally, the Judjie may in any such proceedinj; decide any question which it may be necessary' or expedient to decide for the recti- fication of the said books. (2) The Judfjje may direct an issue to be tried in which any question of law may be raised. Appeal. ('^) -^» appeal shall Jie, as in ordinary cases, before such eTudjje. |4) This section shall not deprive any Court of any jurisdiction it may have. Hooks to be *7'*' ^uch books shall durinj; reasonable business iui^pecdoii. hours of cvery day, except Sundays and holidays, be ke])t open for the inspection of shareholders and credi- tors of the comi»auy. and 1"ieir personal representatives or agents at the head ottice. and every such shareholder, creditor, ajient, or representative, may make extracts therefrom. Cll. I!)l.) ANNUAL .SIATIOMKNT AND SU.MMAHV, KTC. 2()1 m foi'o I any boss bo Icdi- livos Idor. licts T»>. Any directoi- or ofliccr who rr-fiisos io ixM'niit any person entitled thereto to inspect sncli book or boolcs, or malvo extracts tlierel'rom, sliall forfeit and ]»ay to the party aj^grieved the sum of one hundred dollars; and in case the amount is not itaid within seven days after tho recovery of judgment, the Court in which the judgment is recovered, or a Judge thereof, may direct the imprisonment of the otTemler for any pei'iod not ex- ceeding three months unless the amount with costs is sooner i)aid. TO. Such books shall be prima facie evidence of all facts i)uri)orting to be th<'reby stated, in any action or ])roceeding against the company or against any sluire- iiolder. TT. The directors shall cause ])roper books of ac- count to be kept containing full :ind true statements: (a) Of the company's financial and ti-adiug transac- tions; (h) Of the slock-in-trade of the comi)any; {(■) Of the sums of money received and expended by the company, and the nu\lters in respect of which such receipt or expenditure takes place, and (d) Of the credits and liabilities of the company; and also a book or books containing minutes of all the ]iroceedings and votes of the comiiany. or of the board of directors, resijeclivcly. and the by-laws of the com]»auy, duly authenticated, and such minutes shall be verilied by the signature of 1lie jtresident, or other presiding officer of the company. Anxi'al Stat I'M i:m' anm) Si'mmarv. Etc. [a] TS, At each annual mceiing. or. at least, once in every vear. ami at interxals of not more than lifteeti, (a) Due caro sluiuld Ito lakcii in the iircimratioii <>l' tlicsc rctiinis. In a rocout fasc a list ol' shiri'lioliK'rs li'aiismittcd to tlic I'luviiuial S>ecn'tary eonlaiiu'd tlio name of a person as holdinu- a fcriain amount of stoclc, while in tho list posted up in tlio head otHee of the eonii'imy the shareholder's name was iiuidvertenl l.v deleted: Tfvld. that the lists wore not duplicates and that the company were liable to a penallx under the A0 Ontario Ueiiorls, ."47. The fee payable on tiliuf; returns w ill be found under see. f).". /lo.vV. I.inliilily for rcfn^iil III iiUnw in- >l»'i'iiou of Ixiuks. I!i>nks to 1)0 /'/ itiift J'tH'ic eviilcnt't'. IJnolis (if accoiuit to lie ki'iit. .MiiuUes of lirdi't'c'il- UIJ4H. \nniui1 ■-tlltc'tllCllt it inc'iniiu I ml ox- |iriii|iliin's. i i 262 ONTAHIO COMPAN'IES ACT. [Ch. 191. I ni' Aiiinml Buuiimiry of tlio atTairs of tlio com- pany. months. Ihc (liit'ctoi's sluill, at ii {general nicotiiij; duly called, lay before the ((nnpaiiy a wlateiiient of the incoiiie and exi»<'iiditiii'e of the company for the jmst year, made up to a date not more than three months before such an- nujil or fieneral meetinj;, and shall also lay before the conii)any such fiirther Information respect inp; the com- pany's tinancial position and profit and loss account as the by-laws or the charter of the company may re- el aire. ^ TO. (1) The company shall, on or before tiie tlrst day of February in every year, make out a summary* in dupli- cate, verified as hereinafter recpiired, containinjj; as of the thirty-first day of December precedinj.;, correctly Contents of stated, the followinjf j)arficulars.- stateuiunt. {(i) The corporate name of the com])any; (h) The manner in which the coni])any is incorpo- rated, whether by special Act, or by letters patent; (c) The place where the head oitice of the company is situated; ((/) The place, or places where, or from which the uudertakin<>; of the company is carried on; (f) The name, residence and post-oflice addi'ess of the president and of the secretary, and of the treasurer of the company; (/) The name, residence and post-office address of each of the directors of the comi)any; t[l) The date upon which the last annual meeting of the comj>any was held; (//) The amount of the ca]>ital of the company and the number of shares into which it is divided; ((■) The number of shares subscribed for and al- lotted; ^ For Form of Bnlauco Sheet, see post. • See sections "i, fi, 7 and 8 of this Act as to companies required to make returns liercunder. For Forms of Returns see Index to Forms. ° These returns maybe inspected hy anyone interested, at the rrovincial Secretary's Department. Toronto, on payment of the authorized fee, twenty-five cents. CIl. 1J)1.] ANNUAL STATKMKNT AND SUMMAItV, ETC, 2G.S (j) TIu' aiiiount of stock (if iiny) issiu'd fn-c fr call; if none is so issued, this fact to be stated; (/.j The anioniit: issued subject to call; oui (/) Th e aniouut of calls made on each share (in) The total ainouut of calls received; (//) The total amount of calls unpaiil; (o) The total amount of shares forfeited; (/') The total amount of shares which have never been allotted or subscribed for; (q) The total amount for which shareholders of the company are liable in respei-t of unpaid stock held by them; (2) The said summary may. also, after j^ivinj^ the information hei-einbefore retpiired, j^ive in a concise form, such further information respect in«; the alVairs of the company as the directors may consider expedient. (3) The summai-y shall also contain a list of ]>ers()ns ustof who, on tlie 31st day of December previo\isly, were hokk'is, shareholders of the company; and such list shall state the names ali»habetically arranj-ed, and the address and occujtation of each such jterson; the amount of stock held by each; and the amount, if any. unpaid and still due by each such person; (4) Evei'y company so lonj*' as it carries on the busi-netumns ness of warehousinji' crude petroleum shaH state the fol- petroleum lowinj'' additional jKUticulars in the summary: — (i.) The total quantity of crude petroleum actually held by the com]»any for the jmrpose of an- swerinji' transportation and warehouse re-» ceipts, accepted orders, and certilicates of crude petroleum. (ii.) The total quantity of crude petroleum in re- spect of which the company as warehousemen or carriers are liable to make deliveiy to other persons. [.I.*; to rehirns hi/ companies carri/ing on the lasincss of ivarchuitahuj crude pclroleum, sec aJsa cdj). .JIf>, sec. .'/.] J hi II' III 2G4 ONI'AllH) ('OMI'AMKS Ad'. |('li. 1!)I, Mod.' (if wriliiiK' till hlllllL'. \'c'vili(ja- tioii thereof. I'ostiiit; tlieieof. Deposit witli I'ro- (5) Tlic smiiinjiry, iiiid over}' duplicate (hereof re- (liiii'ed by lliis Act, sluill be wiiHen. or jn-iiited on only one side of the sheet or sheets of i»iij>ei' containiii';' the same. ((!) The suniniai'y shall be veiilh-d by tiie allidavit of tlio i)i'esiason thereof shall be slated in the snbstitnled allidavit. As amended by (»:', V. c. 21), s. 4. (7) One of the dui)licat<' summaries, with Ihe alhda- vit of verification, shall be posted up in a conspicuous position in the head oilice of Ihe com]»any in Ontario, on or befoi'e the 2nd dav of Februai-v; and the companv shall keep the same so posted, until another summary is j;"t'^"J,j.| ^''''" post ed under the i)rovisions of Ihis Act; and the other dn]>licale summary, verified as aforesaid, shall on or b(!- fore the 8th dav of Februarv next after the time herein- before fixed for making the summary be transmitted, bv registered letter, to the Trovincial Secretary and be ad- dressed to him at the Tarliament liuildinj^s, Toi'onto. defiuiit ^"' ^^^ ^^ " company makes default in complying with the ])rovisions of this section, the comi>any shall incur a l)enalty of |2(> for every day during which the default continues, and every director, manager or seci-etary of the company, who knowingly and wilfully authorizes or •permits such default, shall incur the like penalty. (9) This section sliall not apply to any company un- til the 1st day of Febrmiry next, after the first 81st day of December, after the company has been organized, oi- has gone into actual operation, whichever shall first hapi)en, and shall not be held to api)ly to any com])any which has ceased to carry on busiiu'ss; and ujton its being ])roved that any company to which this A'-t ap- plies did not transact any business (other than the i)ay- When sec- tion not to apjily. •fh Ch. l!l|.| INSI'I.CTION. 2G5 MU- l.y a(i- ). with ur ;i uilt ; of s or nn- (lay or llirst kaiiy its ap- l>ay- iiK'iit of (axes or the iiiaUiii;;' of a ret urn, or tlii' fiiriiisli- iiij,' of any list, statciiifiit, or oilu-r iiifoi'inalioii to llic (lovorjiiiiciil (tf Ontario, oi- lo any ojliccr or depart niciit llu'i'cof) (liirinji- tile year for avIiIcIi it is allcjicd a return in accordanee with the re(inirenienls df law lias not been made, sncli company shall he deemed tct Inive eeased to eai'i-y on hnsiness within the meaning of lliis sub-section. (10) This section shall not aindv to anv company not Kunii.T Jiavm^i' }iain Jor its jmritose or object, where such com- l»any hy its chaiter of incorjiorat ion is declared to be ('Xem]»t from the i)ro\isions thereof, or t(» any comjtany not liaviiif-' ^ain for its jMirjiose or object, which, on jiroof thereof bein<;- shown ((* the Meulenanl-( iovernor in Council, is. on, from and after a date to be set ftnih in the oi'der (d' the Lientenant-( iovernoi' in Council in that hehalf. (h'clai-ed to be exem|tt. (.1 x II lit rill Iril I, If til Blnii riinns (if siiimiiin'irs, lists iiml ii Ilid i vii s nrr t'lirwiin led fumualiy ti) new (•(iiniinuic jind li> (■(iiniiMiiH' wvvo I't'ccivi'il till' iircviciiis ,vc;ir. liy llic I'roviiicial Srcrctiir.v' ri-iiiu wliMiii ri'tnnis Dc llUlllli it Itai'liiH'iit in .•iiiiipIc time I'nr iiiiikinir iln' icliini. 'I'lic slu'i'ls sliuiili I'iislC'iit'd Willi ;i ciiii (ir luii. imt uiiiniiicd tn.LrclliiT. Ixsri'.cTiox. SO. (1) Tpon an application by not less than ono- fifth in value of the sharehohhM-s of the com])any. a Jndjjo may, if he deems it lecessary. a]»])oint an ins]»ec- tor to investi^^ate the atl'aiis and manaji-ement of Hie com]tany, >v1h> shall i'e]»ort Ihei'eon t<» the Judnc and the (Xjx'nse of such invest i.uat ion shall, in the discretion of the fludiie. he defrayed by the company, oi' by the ajipli- cants, or ])artly by the comi)any and ]tartly hy the appli- cants as he may order, an(h if he lliinks lit, lie may i-e- (]uire the a])i)licants lo -ii lltt 1.8 1.25 1.4 1.6 .4 6" — ► v: ^ n. /a <% ^<3 vl A /a o V /A Photographic Sciences Corporation m 4< \ \ \ ^\^ ^. '■■■ ^ m^ ^ ^^^ w ' i rr r^ to be hu>d-o;ain made and everv bill of exchange drawn, accei)ted or company, indorsed, and every promissory note and cheque made, drawn or indorsed on behalf of the company by any agent, officer or servant of the ('omi)any. in general accor- dance with his powers as such under the by-laws or resolutions of the conqjany, slu;ll be binding ujxui the company; and in no case shall it be necessary to have the seal of the company affixed to any such contract, agreement, engagement, bargain, bill of exchange. ]>ro- missory note or che(iue, or to prove that the same was made, drawn, a('cei)ted or indorsed, as the case may be, in pursuance of any by-law, resolution oi* special vote or order; nor shall the person so acting as agent, officer or servant of the company, be thereby subjected individu- ally to any liability therefor. I "Wlf"n if Cli. 191.] CONTUACi.S, DIVIDENDS, ETC. 267 Not to i)ur- chase stock ill otlier corpora- tiuiiR. Liability el directors declaring a dividend wlieii com- pany is iu- Holvent, ftc. How a director iiiiiy avoid siicii liabil- ity. 82. The company shall not nndcr any circnmslancos use any of its funds in the purchase of stock in any other corporation, unless and until the iirectois have been expressly authorized by a by-law jtassed by them for the purpose and sanctioned by a vote of not less than two-thirds in value of the shareh()lders present in i>er- son or by proxy at a general meeting of the company dulj' called for considering the subject of the by-law. 88. The dii-ectors of the comi)any shall not declare or pa3' an}' dividend when the company is insolvent, or any dividend the payment of which renders the company insolvent, or diminishes the capital thereof; but if any director pi-esent when such dividend is declared, forth- with, or if any director then absent, within twenty-four hours after he has become aware thereof and able so to do, enters his written j)rotest against the same, and within eight days thereafter causes such protest to be notified, by registered letter, to the IM'ovincial Secretary, such director may thereby, and not otherwise, exonerate himself from liability. 84. Xo loan shall be made by the company to any no loan by shareholder, and if such loan is nuide, all directors and t" simrL- other otticers of the company nuiking the same, and in anvwise assenting thereto shall be iointlv and severallv liable to the company for the amount thereof and also to third i)arties to the extent of such loan with legal interest, for all debts of the company contracted from the time of the making of the loan to that of the repay- ment thereof. 85. The directors of tlie company shall be iointlv '•!'i'''ii'y of • • .1 . (lu-ecturK and severally liable to the laboureis, servants and f"'"^^a«'^«- apprentices thereof for all debts not exceeding one yeai's wages due for services performed for the company while they are such directors respectively; but no director shall be liable to an action therefor, unless the company has been sued therefor within one year after the debt became due. nor yet unless such director is sued therefor ^I ■ 1 I! i i I' r 5 i I 268 Winding up Acts ti) apply. Apcoiints may bo aiuiitud. Appnillt- meiit. of Ih'st audi- tor. Auditors may l)e sliarbliold- ors. ONTAUIO COMPANIES ACT. [Ch. 191. within one vear from tlie time when he ceased to be such director, nor yet before an execution against the com- pany has been returned unsatisfied in wliole or in part; and the amount due on such execution shall be the amount recoverable with costs against the directors. Liability vf Directors for wages. A person eiiiployod as foreman of works, Avho l)iros and dismisses men, makes ont pay rolls, receives and pays ont money for wages and does no manual labour, and in addition to receivin>r pay for his own services it the rate of five dollars per day, payable fortnightly, is paid for the use of machinery belonging to him and of horses hired by him, is not a labourer, ser- vant or apitr(>ntice within the meaning of s(>ction (iS of the Joint Stock Companies' Letters Patent Act, 11. S. O. ('ip- l*^", and cannot recover against the directors personally. Welch v. Ellis, 22 A. 11. Ont. 2rM. The section mentioned in this judgment is identical with section So of this Act. Hii. The company shall be sul)ject to the provisions of any Act of the Legislature for the winding up of joint stock companies. Auditors and their Duties. f^T". If the spe<'ial Act, letters i)atent or the by-laws of the company so direct, the accounts of the company shall be examined once at least in every year, and the correctness of the balance-sheet shall be ascertained, by an auditor. .SS. Such auditor may be appointed by resolution at a general meeting of the com[iany; if so appointed, he shall hold olTlice until the next annual general meeting thereafter unless previouslv removed bv a resolution of the shareholders in general meeting; subseijuent audi- tors may be ajipointed by a resolution of the company in general meeting. H9 The said auditor may be a shareholder of the company, but no i)eison shall be eligible as an auditor who is interested, otherwise than as a shareholder, in any transaction of the com])any; and no director or other officer of the company shall be eligible during his continuance in office. i»ii at 1. lie 'tiuji »n of iiidi- [Kiiiy the litor , m or his Cll. 191.] FEES, KIC. 1>0. by the company in };('neral nieetin*;. mont 2Gl> 1>0. The reniunoration of the auditor shall be fixed "'••""""""- lion lit auditias, ^ ^, — ^^ — -«- — ^^.. .^. Ol. Any auditor sliall be elijiible for re-aitpoint- ^"''''"!*; 02. Every auditor shall be supplied \vith a copy of Aii.utcisto ■ exiiiiiiin) the balanee-sheet, and it shall be his duty to examine '""'"""s. ■ etc. the same >yith the accounts and youchers relating thereto. 9li. Eyerv auditor shall haye a list deliyered to him of all books kei»t by the company, and shall at all rea- sonable times haye access to the books and accounts of the company. 94. The auditor shall nuike a report to thc^ share- holders upon the balance-sheet and accounts, and in eyery such report he shall stat<' wheany, whether such ex- I>lanation, or information has been ••iven by the direc- tors, and ^vhether it has been satisfactory. Fees, Etc. 9*i. (1) The Lieutenant-Goyernor in Council nuiy, from time to time, establish, alter and regulate thctarilT of the fees to be paid on applications under this Act; may designate the department or depariiuents through Avhich the issue of letters patent, or sup[>lementary U't- ers, or of licenses should be made; and may ]>r<'S(ribe tiie forms of proceeding and record in respect thereof. and all other matters requisite for carrying o\it the objects of this Act. (2) Such fees may be made to yary in amount, undcn' any rule or rules — as to nature of company, amount of capital and otherwise — that may be deemed expedient. AcCPss of iiiiiliioi's til 1)o(jUs, otc. .\ili1itois to limlic re- polls til sluiruliulil- I'lS. Fees fill loi- ters put- flit, etc . to lie tixeil liy Oiilel-iii- CoillK'il. Miiy Iio viu'iod. t i il 5: 270 ONTAIUO COiMPANIES ACT. [Cll. 191 Restriction (;{) j^^^ ^^^^.j, gi,jj„ ^^^ ^.^|.^.„ j^ j^„^. DepartllK.'Ut to- wai'ds the issue of nuy letters patent av supplementary letters patent, or license under this Act, until after all fees therefor have been duly paid. fifilfK""- (■*) ^''"^' company shall for the follow mu services "pay to turn, etc. fj^g Provincial Secretary the followiay fees upon teiuhr- ing or transmittluff to him any return, hy-laiv or other document rerjiiired Ijy this Act or by any Act incorpo- rated herewith to be filed v/dlt the Frocincud Secretary and in the Schedule mentioned, and no tender or trans- mission of such return, hy-laiv or other document shall be deemed to be a due compliance 'with these 2>vovisions unless and until the p)rcscribed fee for receiviny and filin'oO,000 but not excel i ing S 100,000 J 00 3. Filing the annual statement of a company having a cai>ital stock exceeding S 100,000 o 00 4. Fding bydaw for sale of mining company s stock at a discount J 00 5. Filing bydaw increasing or decreasing . nwmber of directors, or changing com- pany's chief place of business . J 00 6. Filing any other bydaiv or docitment J 00 — As amended by 03 Vic. c. 23. The following is the schedule of fees payable for ^r rices rendered under the provisions of this Act, as fixed by Orders in Council, daied 2r)th November, A. I>. ISlJjt. and 27th Decendier. 18UJ). mil also for Licenses to Extra I'rovincial ('or|)orations under (j3 Vic. cap. 24. Fon Letters Patent. When the proposed capital of the applicant Company is $40,000 or less, the fee to be $100. ! "TT^ Ch. 191.] VKES, ETC. 271 "NVlu'ii it is iiioro miii $4(>,(MHi, but doos not oxci-cd !?100,0()(>, tho £00 to hi} !$\W iind .$1 for tvi-ry .fl.tKMi or fnutioiial part tlK'n-rf in excess of .$4<),()()0. Wiicn it is over .fKMi.OdO, hut (loos not oxcccil !);i.(MM),()(H). tho foo to lio .$!»;() iind !lf''2.r>0 for ovory ijdO.tHHI or fractional part tiioroof in fxcoss of !i51(IO,(MM>. Wlion it is .$1, (»(!(».( )()(), tho foo to bo $:'.s.- uiid !<-J.."0 for ovory ?10,U0O or fractional part thoroof in oxcoss of .fl.dOD.lMMJ. Whon tho charter is for a Cheese or Butter Coinpuny, the fee to be $10. When the charter is for an Educational Institution not carried on for th«' purpose or object of Kain, tho foe to bi' .flO. When tho charter is for a Cenietory Company which is not to bo carried on for Kain, or which shall undertake to distrib\ite in tho Iniprovoniont of its i»roperty any ;,'ain derived by the Coni[t.iny, iho fee to be -IdO. When the charter is for an Athletic Club composed of amateurs, and has for its object tho oncouraKomont and promotion of lawful games and exorcises, antl such Club is not to be carried on for .train, or shall undertake to distri'ute in tho improvenu'iit of its property and facilities as such Club any gain derived by tho Club, the foo to be $00. FOU Sl'PPLE.MENTAUY LkTTKUS rATICNT. Whore tho cai)ital of ;i Company is increised, tho foo to be nccordiny to tho above list, but on tho increase only. AVhere the caiutal is not increased, the fee to be $100. FOR LICENSES. Tees for Licenses to Corporations cominc; within Class VII. or VIII., as I)e.scriued V 03 Vic. Cap. -4. Which see post. If tho caiiitnl stock of tho company does not exceed tho sum of one hundred thousand dollars, tho fee to bo twenty-tivo dollars. If tho capital stock of the company exceeds tho said sum of one hundred thousand dollars, the foe to be fifty dollars. SCHEDCLE B. Fees for Licb.vses to Corporations co-mino within Class IX. [First vuit.) Subject to the provision in section IS tho fees payable shall bo tho same as tho foes now payable upon tho incorporation of a com- pany by letters patent umlor The Ontario Companies Act, viz. :— When tho proposed capital of the applicant comimiy is .$40,000 or less, the foo to bo $100. When it is more than $40,000, but do'S not exce«Ml $100.00<1. the foo to be $10f> and $1 for every $1,000 or fractional part thereof in excess of $40,000. II t, '272 ONTAKIO COMPANIES ACT. [Ch. I'Jl. Certain in- to iiiiiilitios not to in- validatJ! letters pat- ent, etc. When it is ovt-r !flO(),«MI(», but iLns not vwwd .f 1, 000,000, the ft'o to 1k' !0 lor cvltj- !f 10,000 or I'nu'tionul part Iherool" in cxirss of !j! 100,000. Whi'ii it is !itl,OO0,000, the fee to bi( .f.'SS.". and .$2.50 for every $10,000 or fractional pirt thereof in exeess of .$1,000,000. (Si'coud vart.) If (he capital stock of the company does not exceed the sum of one iiundred llionsaml dollars, the tvv to lie lifty dollars. ll" the cai»ital stock of the comiiany exceeds tlu' said sum of one hundred thousand dollars, the fee to be one hundred dollars. For Ordeiis in Coun-cil, Etc. For an Order in Council ehin^'infr the name of a Company, !?2,"i. For iin C)rder in (.'ouncil accept iiij; the surrender of a charter, $no. For an Order in Council approving of a by-law creating prefer- once stock under The Ontario Companies Act. .$."0. For an Order in Council under It. S. O., c. 1J50, ss. 5 and il (Trustees Investment Act), .$100. For an Order in Council authoriziufr ii Company being accepted by the High Court as a Trusts Company for the purpose of such Court, .$200. No cheiiuo will be accepted unless it is marked. Cash not registi'rcd is at the rislc of the sender. I'ost ollice orders, i)ostal notes, clu'(iues and drafts should be payable to the order of the I'rovincinl Treasurer. The above fees ;ire subject to alteration without notice. ?M8. The provisions of this and any other Act relat- ing to matters preliininarj' to the issue -of the letters patent shall be deemed to be directory onlv; and no letters patent, or supplementary letters patent, or license, notice, order or other proceeding b^' or on be- half of the Lieutenant-Governor in Council, I'rovincial Secretary, or other Government or departmental ofticci- under this or any other Act shall be held to be void or voidable on account of any irregularity, or otherwise, in resi)ect of any matter preliminary to the issue of the letters patent, or supplementary letters patent, license, notice, order or other proceeding or of any alterations in any petition or papers submitted in order to make them comply with this or any other Act, or with the departmental practice thereunder. #. Ch. 191.] FOUFEITUHE, ETC., OF CHAUTEU. 273 Liability for F.*ilsk Statements. OT. (1) If anv ihtsoii in Jiiiv return, rcitorf, certi- F'^'*"' ><"- floatc, balancc-shccl, or othei' «l<)('iim«'iit icqaii-cd by or for the pnrimscs <»f this Act. wilfully uuikes a staleuient false in any nuiterial particular. In* shall be liable on conviction on in(lit use its corporate powers such powers, except so far as is necessary for winding up the company, shall be for- feited, and its name, in wlnde or in |»art, may be granted to another company, notwithstanding anything contained in seition 10 of this Act; and. in any action or proceed- ing where such non-user is alleged, proof of user shall lie ui>on the company, pr<»vided, however that no such forfeiture shall aft'eet prejudicially the rights of credi- tors as they exist at the date of such forfeiture. tt». The charter of a comi)any inccuporated by let- itmnoiuion ters patent may. at any time, be declared to be forfeited and mav be revoked and made void by an order of the (>; e liartfi'. W.S.D.M. -18 274 ONTAlllO COMPANIKS ACT. [Ch. 191. lu^liv'diial liabiliiy for wluiU) of tliu uuiii' liaiiv'H (1el>tH if bUHilK^HB is cari'iud ciu witli \vhH tliaii tU'u uiotiibura. A cliarter may be surreii- dorud. Lieutonant-Oovernor in Coiiiuil on siitlUient cuuso being Hliown 1o the Liciitcnant-Goveriufr in Council in that behalf, and such forfeit are, revocation and niakinj; void may be upon such conditions and subject to such pro- visions as to the Lieutenant-Governor may seem proper. lOO. (1) If a cfHupany carries on busiin'ss when the number of its shareliolders is less than five for u period of six months after the number has been so leducr-J, every person who is a shareholder in the company dur- ing the time that it so carries on business after such period of six months and is cognizant of the fact that it is so carrying on business with less than Ave share- holders shall be severally liable for the payment of Ihe whole of the debts of the company contracted during such time, and mav be sued for the same without the joinder in the action or suit of the company or of any other shareholder; but any shareholder who has become aware that the company is carrying on business when the number of its shareholders is less than five, may serve a protest in writing on the company, and may, by registered letter, notify the I'rovincial Secretary of such protest having been served, and of the facts upon which it is based, and such shareholder mav therebv, and not otherwise, from the date of his said protest and notification, exonerate himself from liability; and if after notice from the Provi.icial Secretary the company refuses or neglects to bring the number of its share- holders up to five, such refusal or neglect may, upon the report of the Provincial Secretary, be regarded by the Lieutenant-Governor in Council as sufficient cause for the revocation of the company's charter.^ lOl. The charter of a company incorporated by letters patent may be surrendered if the company proven to the satisfaction of the Lieutenant-Governor in Council: (a) That it has no debts existing, or other rights in question, or ' Soe remarks iu Chapter 4 as to this sectiou. Cli. I'Jl.J KXTKNSloN OK I'oWKUH. 27.-) (b) Tlint it liMH i»ail(Ml wifli its |H(»|»«'i( v, divided its jissi'ls I'jitcjildy imionv^s' its sliarc- ]iold('rs, and lias no debts, or liabilities, or (r) That the debts and oblijralions of the comitanv have been duly jd'ovided foi' or |»roteeted. or that the creditors of the company or other persons holdinj; them consent. and that the company lias {jiven noti<'e of the ap|)li<'a- tion for acceptance of suirender as may be recjuired by regulations nuuU' under section 11 of this Act; and the Lieutenant-Ciovernor in Council, u|»on a due comi>liance with the provisions of this section, may accept and direti; the cancellation of the charter and may, by his order, lix a date upon and from which the company shall be deemed to be dissolved, and the company shall thereby and thereupon become dissolved accordinj^ly. Tho applu-ation must bo hy a forninl pi'tition, signed liy the pxorn- tivo otliccrs ol" till' C'omiiany, ami passed under the Coui|iany's seal. Tho petition shoidd set forth the material facts, such as the incor- poration of the Company, etc., etc., and should specify clearly the Rrouiuls upon whicli the (\)mpany feels that it is jiistified in making the application under the provisions iliove refi-rred to, ami should slmw that the Company has authorized the making of the application. Tlio contents of the petition must be veritied by altidavit to lie made by one or more persons conversant with the affairs of the Cctmp.iny. A verified statement of the affairs of the Company should also be filed with the petition, as well as documentary evidence that notice of the intention of the Company to :ii)ply fur leav*' to surrender its charter has, in the form of an advertisement, been inserted twic(> in one or more of the newspapers i>ublished at, or as near as may be to tho place at which the head olHce of the Comi)any is situated («i. The date ujron which the dissolution of tho (.'ompany is to take efloct sliould also bo specified in the petition. The charter itself must be transmitted in order tint it may ulti- n\ately have endorsed upon it the fact that its surrender has been accepted by the Lieutenant-Governor in Coimcil, anil that it may be officially cancelled and deposited in tho office of the Deimty Pro vincial Kegistrar. Extension' of Powers, 102. In case a resolution, authorizing:; an applica Aiduiomi tion by petition to the Lieutenant-Governor therefor, IswhTcT (fl) See Form of Petition, etc., post. 276 ONTAUIO ((tM PA NIKS ACT. [Ch. If) I. may bo ({raiitixl by iiioiiinry IdtturH patent. AinalRR- Illation of toiuiianieF, Joint aKroBinent between (Uroctors ])roi)ogin)j to ninalKi'- niate, etc. pJiHHiMl l>,v a vol«' «>f not less lluni two-lliiitlH in vnliic of lln' sliiirclioMnH |n«'s<'iii in iinson or hv |n<»xy nt a ««MU'-sil nuTtin^' of the company, duly ciillcd for consid- f'rinf; tin- snl»j ((f Huppii'mcntaiy Idlers palcnt to Hie comi»any embracing any or all of tin- foiiowin;; maltt'is; ((I) Kxlcndinj; llu' p<>\veis »>f the company to any objci'tH within tlu' scop«» of this Act, which the comjiany may (Icsirc; This (Iocs not ciniiowcr coniiuinics to olitaiu suppit iin-ntary Ictti-rs piilciit for objects totally (lilTcrcnt from lliosc set out in the original (.•liartiT. I'liiTo iiinst be some (IcKit'o of similarity in the new objects as coiiipircd with tiic former. For instance, a comininy known as Tile liOiidon Creamery Companj ioiild not l>y snppbnnMitnry letters and under tlie same name accpiire the ri^lit to do a ininlnj; bnsiness. {h) JM'ovidin}; for the formation of a r< i i\<' fund: {(') ^'al•yin«; any i>rovlsion contai"'»d in the letters l)atent, so loni;' as the alteration desired is not contrary tt) the provisions of this Act; (d) Makinjj; provisitm for any other jnatter or thinji in respect of which jirovision mi;;ht be made by orij;inal letters i»atent under this Act. Amalgamation ok CVimpaxtes. 103. (1) Any two or more l V <)bji'«'l!< iiowii us y h'ttcrs hiisiut'ss. f fund-. k'tU'iH sii'iMl is lis A«-t; )!' thiuii ht »>«' IT this Hjratcd objcH'ts herein 1* stock, tor into ary to ir to f«" tor into h'Voi ate ilgania- I'osei'ib- inj; the terms and conditions thereof, tin* nioih* of carry- ing the same into ciVcct. (ii»' name of tin- new company, of whicli tile last word siiali ho the w<»nl *' lamited." tin' nnndier of liic directors lln-reof. and wlio siiall he tlie first directors tliercof ami llicir places of ri'si(h'm'P. the nnmlter of sliaics of tlie capital slock, the annnint of par valne (d" each share, and the manner of convertinj; the capital stock of each of the said corporations info that of the new corporation, and how. and when direc- tors of the new corjioration shall he elected, with such ofhei" details as ihey deem necessary to perfect the new or};ani/ation and '!ie consididation and amal^annition of the said compiuiies. and tlu> after niana^^'ement and working; the'' of. (.M) The afireeiiieni shall he snhmiffcd to the share- Inddei's of each of the said companies at a nu'eMnj: thei'eid' «'alled in accordame with the hy-laws ami held separately f<»r the j.iirpose of takinji the same into con- sideration. (4) At such nu'etinjis of shareht out the names of the shareholders; and after the issue of the letters patent, the company shall be governed in all respects by the provisions of this Act, except that the liability of the shareholders to creditors of the old company shall remain as at the time of the issue of the letters pateut. (2) Where a company is re-incorporated under the preceding sub-section the Lieutenant-Governor may, by the letters patent, increase the capital stock of the com- [tany to any amount which the shareholders of the com- pany api)lying for re-incorporation may, by a resolution passed by a vote of not less than two-thirds in value of those present in person or by proxy at a general meeting of the company duly calh'd for considering the same, have declared to be requisite for the due carrying out of the objects of the company. (3) The resolution ma}' ]>rescribe the manner in which the new stock is to be allotted; and in default of its so doing, the control of the allotment shall vest abso- lutely in the directors of the new company. 105. Where an existing company applies for the Kxistint,' issue of letters patent under the provisions of the jn-e- may'appi'y ceding section, the Lieutenant-Governor may by the h't- patent '^"^ ters patent extend the powers of the company to such teu.ieci ' liowers. I 11 I i' 280 ONTARIO COMPANIES ACT. [Ch. 191. Lettbrs patent for certain purposes may be granted to cnnipanieB incorpor- ated under special Acts. other objects within the scope of this Act as the appli- cants desire, and as the Lieutenant-dovernor thinks tit to include in the letters patent, and maj- by the said letters patent name the first directors of the new com- pany, and the letters patent may be to the new company by the name of the old company or by any other name. Letters 1*atent to Companies Incorporated by Special Act. lOtt. Where any company has been incorporated by a special Act for purposes or objects within the scope of this Act, then, in case a resolution authorizing an application by petition to the Lieutenant-Governor there- for is passed by a vote of not less than two-thirds in value of the shareholders present in person, or by i)roxy, at a general meeting of the company, duly called for considering the subject of such resolution, the Lieuten- ant-Governor in Council may, from time to time, direct the issue of letters patent to the company, embracing any or all of the following matters: (a) Extending the i)owers of the company to any objects within the scope of this Act, which the company may desire; (6) Limiting or increasing the amount which the company may borrow upon debentures, or otherwise; (c) Providing for the formation of a reserve fund; (d) Varying any provision contained in the special Act, so long as the alteration is not con- trary to the provisions of this Act; (c) Making provision for any other matter or thing in respect of which provision might have been made had the company been incorpor- ated under this Act. lOT. (This section is not reprinted here, in view of the fact that it will be repealed on the first day of July, 1900. See 63 V. c. 24, s. 22.) i Ch. 191.] COMPANIES INCORPORATED BY SPECIAL ACT. 281 108 The penalties provided by this Act shall heu.co.ery reroveralleonly by action at the suit of, or brought ^vitht!^''''''■ the ivritten consent of , the Attorney-General of the Pro- vince of Ontario. (New section from 61 Vic. c." 19, s. 8.) of these Revised Statutes /or the reviission of penalties, the ^^^lu. i^ieiitenant-Crovernor in Council may remit the costs of^""'^^^'""' any action heretofore commenced for the recovery of pen- cdties under this Act, and in case of such remission no costs shall be recoverable by the person bringing such action, (^evv section from 61 Vic. c. 19, s. 9.) i I 282 I CQ S "^ «) ^ Ed at 5> i! "^ - H ONTAHIO COMPANIES ACT. 5 ^- -3 = ~i ^- ^ S J2 02 H J Co ^— ,HH _C s ~ *^ s .4.1 cn o 0) rO o c «-, ^ d aj O ■t.j _-** j; te aj 'S ■S <- -i - S n* ^ • i1 - X! 5< ^ ■ ^ 9 o = CO S5 « 4) i< i = ii ^ i :5 ^ Ch S! -s « -S ri -C Q fQ 5 o 'o 5 ^ ^ o U ^ - a 3 5 C i> M 08 C S t7 «- S ^ O M nz 2 [Ch. 191. a> M 5^ «o ^M o 1 o a! .a s 3 09 { «M O — a> c _a "3. V '2 -*J eS S « « •«a cJ » •*^ • 3-2 2 » 5 "♦J £^1! *t-i < o m . *« u ! 03 s^ 1 V £ "S o a 1.2 3 CO >*-t o - siMjUfiit clinntrcs in tlio conslilntion of coinpiinic's nndrr the Ontario <'oini);Uii('s Act, wen- prepared liy tin- antlior for the first edition of the ^fannal, and were sntiinitted to and ai>nroved liy tin' Attor- ney-Oeneral's Department of Ontario. Tliev have since liecome olficial, ami some of them have been emtiodied in tlie Coinpaides Act. Certain of tlie forms Iierein hive lieen drawn so as to rei)re- sont the steps tal.. T.IH . B(>tween of the (^ity of in the County of Furniture ^lanufacturer, of the First Fart, of the saiil City of , Accountant. of the Second Fart. of the said City of , Furniture Maiuificturer. of the Third Fart. and of the said City of . Esipiire, of the Fourth Fiirt. Whereas, the said parties of the first, second ;ind third parts siro desirous of fiu-minjr and incoriMU'afinvr i .Toint Stock Company under the provisions of the Ontario Compjinies Act, for the pur- pose of carrying on the business of mauufacturiuu. biiyinj.'. sell- ing and otherwise dealing in furnitur(> of all kinds and descrii)tions. And whereas, the said party of the fourth i)irl is the trustee for the said comiiany for whose incorporation aiiplii-ation is jibout to be made, and whose proposed corporate name is to bo " Tlio Company, Limited." And whereas, the pirty of the first part lias for some years past been eiiKiiKed in a business similar to that which the propi>sed incorporated company is to enjjraKe in. and the said parties of thi» second and third parts have e.ich an interest in the said business. 286 FOHMS. [No. 1. * i I ill ii li:i ::i Ui nnd nro owiiors of the Innd nml premises, niachinery, tools, linple- nieiits, rolling stock, poods, Avares, niertlinndise, stock-in-tnide of furniture and other property Leloiiping to tiie said luisiness, here- inafter more particularly set forth which are suitalile to tiie objects of the said company, and it is proposed that the said parties of the first, second and third parts hereto shall become shareholders in the said Joint Stock Company, and sliall trans- fer to the said Company as soon as the same is incorporited the said lands and premises, machinery, tools, implements, rolling stock, goods, wares, merchandise, stock-in-trade of furniture and other property, and which said projjcrty so to be trausferrecT to the said comp:iny is of the value of twenty-five thousand dollars, and the said parties of the lirst. second and third parts shlill re- ceive paid up stock in the said company as the consideration therefor. Now this agreement Witnesseth that tli(> parties of the first, second and third parts have agreed and do agree with the party of the fourth part to become shareholders in the said Company, and to take stock therein to the amount of Twenty-five thousand dollars, that is to say: The said is to take Two hundred shares, the said is to take Twenty-five shares, and the said is to take Twenty-five shires, the said shares being of the value of om^ hundred dollars each, and to subscribe the Memorandum of Agree- ment and Stock-book for the amount of the said shares hereinbefore agreed to be taken by them. And in consideration of the issue of such shares as aforesaiil to them, the parties of the first, second and third parts, they liereby agree with the party of the fourth part to sell, convey, transfer and make over to the said proposed ' company on the first day of , A.D. 190 , or as soon thereafter as thci company may be incorporated, tlie said bu; Miess carried on under the firm name of , and the assets thereof hereinafter particularly men- tioned and described, that is to say: 1. The stock-in-trade of goods, wares, merchandise, lumber, furniture manufactured, and in the course of manufacture belong- ing to the said business. 2. All the machinery, tools, implements, plant, horses, wagons, and rolling stock belonging to or used in connection with the said business, and owned by the said parties of the first, second and third parts, or either or any of them. 3. The good-will of the said business. 4. The furniture, warerooms and premises on Street in the City of , being the Northerly fifty feet of Lot number and the whole of Lot number in Block on Street aforesaid; and that the snid conveyance and transfer shall be made free and clear of all incumbrances, and as regards the land by a 1:1 ^mm No. 2.] AGUEK.MENl' FOK SALK OF (loINCi CONCKKX. 2>S7 good aiul sutlicioiit tlft'd in IVo siiniilc, tiiid as re;,'ards the eliattols and utluT as-sols by siuh assiiranci's as may vest the full uad absoluto title tlierelo in the said company. And it is agivtd that the shares that shall be allotted to the parties of thi; lirst, second and third [)arts, and bcin;; the shares to be subscribed for by them in the Memorandum of Agreement and StocU-booU of the company in pursuance of this agreement, shall bo fully paid up shares of the stock of tiie ^aid comi)any, and the party of the fourth part covenants and agrees with the parties of the first, second and third parts to use his best endeavors to procure the issue and allotment of such shares as hereinbefore mentioned to the parties of the lirst, second and third parts as soon as possible after the incoriioration of the said comi)any, and upon th'.' conveyance and transfer of the said lands, plant, uiachiu- ery, and other property as above mention<'d. In Witness whereof, the said parties hereto have hereunto set their hands and seals. Signed, Sealed and Delivered (L.S.) In presence of. (L.S.) (L.S.> (L.S.) FORM NO. 2. AGREEMENT FOR SALE TO I'ROl'OSED COMTANY OF A CiOING CONCERN, FOR WHICH I'AYMENT IS TO BE MAHE IN FAID II' SHARES AND UNDER WHICH OWNER ENTERS COMI'ANY'S SERVICE. This Agrekment made this day of , A.D. 190 . Between of the of , ^lanufacturcr, herein- after called the vendor, of the First Part, and o? , Esquire, hereinafter called the Trustee, of the Second Part. Whereas, the vendor has heretofore carried on business at as a manufacturer of and dealer in And whereas the said iiiamr of \mrty of I'irnt Pari) and (names of other coriUM-atoiK), all of the City of , are desirous of forming and incorporating a Joint Stock Company under the provisions of the Ontario Companies Act, to be called "The Company of {hciriiuiflvr viilWil the comiKini/), to purchase, acquire and carry on the business heretofore carried on by the vendo:- and the good will and stock-in-trade of the vendor, and to manu- facture, buy, sell and deal in And whereas the nominal capital of the said proposed company is to be dollars, divided into shares of dollars oaclu I 28S FOUMS. [No. 2. Ami wlicrcas llu- siiid piirl.v of llic Sccdiid I'lirt is trnsti'f fur tln> siiiil coininiiy sii to lie iiicoi'iioi-att'il. Now This In-dkntiuh Witnk.sshtii. tlitit it is hcrcliy iiKn-rd liy iiiiil l)ft\v»'('ii llic vendor, liu' |miiy of ilu' First I'lirt and the Triislcc, tilt' pnrly of tlic Scrond I'irl. iis follows;— Tlic vendor sliiill sell, and the eoiii|p:iny shall piirehnse llip Idisiness of nianiifat'ttiriiij; and selling ^lorelofore car- i-ied on liy llie vendor, and all plant. niaehint>ry, iniidemonts, tf)(ds, fnrnitnre, chattels and etTeets nsed liy the vendor in or in conneetion with his saifl Imsiness. also tlie stocU-in-tr;nle of the vendor, and the lienelit of all idverlisinK and other eontrat'ts and «'nKa;,'enieiits to \\hi<-h the vendor is on tlie date liereof entitled in I'elation to his said Imsiness. Also the ;,'(iod will of the saiil Imsiness with the extdnsive rijiht to represent sneh company as <'arryinK on sn( h Imsiness in continuation of the vendor and in snccession to him, .Vlso all ('an.-idiaii Trade .Mirks and I'aleiit Iki^lits owned liy the vendor their iiisirt iKirliriiUirn of uiiy Tnidr .M(iii:s mill I'litinls tii he nninjiiil to Ihr voiniuiny), with the exclusive ri;.'ht to use the said Trade Miirks, and exercise and enjoy tlie said Patent IkiKhts and each of them. Tlie consideration for the s.-iid s.-ile shall lie the sum of thousand dollars of lawful money of Canida. The said sum of thousand dollars shall he paid and satisfied liy the allot- ment to the vendor, or to whom he shall apiiojnt of shares in the c:iiiital stock of the company, on each of which shares tlie sum of one lumdred dollars sliiill he credited in the hooks of the company as having heen paid up, making the said shart>s fully paid up. and certiticat(>s for the said shares as fully jiaid up sh;ires shall he issued to the jiei'sons to whom such shares shall he allotted. 'I'lie vendor hereliy directs that of such shares shall ho allotted to of the City of . and the residue of such shares to the vendor. The purchiise shall lie completed forthwith after the organ- ization of the said company, and possession of the propt'rty agreed to ho hereliy sold slnill lie given to the company, provided that the company shall duly allot the said shares pursuant to the pro- visions hereof. In the meantime the Imsiness shall ho cirried on hy the vendor ill the ordinary and usual manner, so as to maintain the businoss as a ^'oiiijr concern. As from tho date horoof until completion of the sale the vendor shall be considered to bo earryinj: on tho said businoss on :ioeount and for the benetit of tlio company. On (U' at any time after the organization of tho company the vendor shall at the expense of the company execute and do No. :j.1 .\(iKi;i:.MKNi's. •2N!) nil, such \ssiiriiiit'('s niid lliiii;.'s as iiiiiy rciisonntily In' rt'iniircd liy till' co'iiimiiy fur vi'siiii;,' in it the pruiH'rly licrt'liy nwrcccl to lie suUl, and Kivinj,' to it Ihi' fnll licnctit «( the said salt*. 'riu> \rndur sluill indrinnit'y the cuniitany against all actiiitm and iirofccdinKs, claims and demands in I'espeet nf the si id con- tract and enK.'iKemenis in relation to the said Imsiness, the henelit whereof is aKreed to lie hereliy sold, excepi as to lireaelies tlii'ri'of (icenrrinK suhseiinent to the incorporation of the ;e ail (intKoin>;s in respect of ihe pre- mises in which the said Imsiness is now carried on np to the date hereof, and the vendor will |ierndt the ((iniiiany t enpy and nse the said premises for the purposes of liie company's business at ;i rental of dollars per month from tne date hereof until such time as ether premises can he secured. The vendor shall in consideration of the making of this ai;reo- nieiit forthwith upon the iiii'oriioration of the saiil compmiy. enter into the employ of such company ..ml serve the said company faith- fully and dillKi-ntly. and ;j;ive the said company the f\dl heiietil anil advantage of his knowledj,'e of and services in the said Imsiness until the hrst day of , I'.Mt , without salary or remuneration in the nature of salarv (or as the case iniy he). * • In Witness whereof the parties hereto have hereunto set thi'ir hands and seals the day and jear lirst above wi-itleii. Witness: SiL'nnture?. FORM NO. 3. AXdTIlKU FOU.M OF Af iKHH.MK.NT. Memorandum of a>:reenient, made this day of A.I). IVtO . Between of the first iiiirt. and of the second part. Witnesseth, that the slid party of the first part hereby under- takes to sell, assijrn, trinsfer and make over unto The Compan.v, T.imited, as soon as Letters Patent have been obt;iined li.v the said jiarties of tlie second part incorporat iii;r the siid Com- pany, all the ri;rhts ;:ranted unto by Letters Patent of Inven- tion, (lilted at the City of Oltawji, on the day of A.I>. !!»(» , under the (Jreat Si'al of the I>ouiiuion of Canada, and bearin;: the number the sime bein;: granted for and aNo any rij:hts for I'euewal thereof and any imiirovements therein. The saiil parties of the second pai't a«:ree to pay unto the siid party of the first part, in consideration of the execution by him of W.S.li.M. — IK 290 FOUMS. [No. 4. UifKo lu'cst'iits, tlir siiiii iif dollars, of wliiiU siiiii tlio iiiiiniinl oi lUillai's sliiiil l)L- iiaiii I'ortlnvitli, and tlu' I'lirtlx'r siiiii oL' dollars, as lollows: and us to the balaacf or sum t>r dollars the >^aid iiartii-s of ihu sfcoiul iiarl midcrlalu' to iiay tlif suiir-, hy allotliiiK iii»l<» t'li' Maid parly of the lirst [lart sliuros oucli of |iaid-iip and iia- asscssalilc slock in tlu' said Coiniiany, wliicli the said parly of tlu> lirst iiart lu'icliy a^rffs to arci'iit in lull paynu'iit and discharge of such halancL'. Till' said parlies hereto hereby declare that this agreement is made and cnlered into in conleinplalion of llie fornnilion of the aforesaid Coniipany, and the acquisition hy il of and the pay- ment of said ac(piisilion in tho manner lu'reinhefore mentioned ind set forth. In Witness whereof, the said parlies In-reto have hereuiitu .set their iiaiids and seals at the of in the of tbiti day of , A.I). I'JU . Sij;iUMl, sealed ;ind delivered in tlu- preseiue of (Seal) yi FORM NO. 4. ANOTIIEU KUKM OK A(! KKIOMIONT, Memorandum of aKreement, made this dav of I{et ween of til' first part, and Tin A.l». I'.IO . < "ump.'iny, Limited, a ('omimiy proposed to lie formed under the [irovisions of the Onlariu Companies Act, represeiiteil herein liy , who are uomiiialed as provisional directors of the said Comiiany, and act herein as trusti-es for the said Comi)any, of the second part. Whereas the iiarties of tho hrst part are the joint owners or the patent or the soli> riyht to and other purposes. And whereas the iiarties of the first p;irt are the Sharehohh-rs of the said proposed Company, and have paid ui> per cent, on all their shares therein, amountinj; in all to dollars, and thoy have auri'ed to sell the said patent or sole rinht to the said dollars or lawful moiu-y of Company for the said sum of C;inada, iiayable as follows: The said sum of dollars in cash, and the balance or sum of dollars, to be acknowledged by tlu' said proposed company as received by them in cash, and as paid in on tlu' said shires of tho said parties of thotirst part, thereby makinj; the said shares as paid up in full. Now these presents witness that in considerali'in of the pre- nusos and of the said sum of dollars, and for tho purpose? of carrying out the said agrocmont, the parties of the lirst iiart mmt^ No. 5.] AUUKKMKNTS. 291 si^'ii> tln' siiiil itiilfiil iiml ^'il«' riulir til , tiiid ilic siiid piriics uf ilic scccuiil luirt. rfiircsnitiiitf herein the s.'iiil |ii'p|Miseil ( 'uiiiiniiiv. tin hereliy iiikiiow led^'e iiml iiiliiiil ihiif the siiiil shiires i)f ilie siiiil p.iriies id' ilie lirsi imrl iire fully imiil up siiafes iiid mi.issessMtiie. Ill >>'itlless w lieleiil', tile s,iid p,irlii'> herein IlilVe llereiiul'i set their h.Miids niid senls this d.i.v uf , .\.l>. 11"' . SJKlX'd. seilled and deiivereil ill lU'eseliee of (Seal I FORM NO. 5. ANOTHllK I'OIJ.M nl- ACUKK.MlvN'l'. An Ai)iii;i".Mi:NT, made liie day i>( lietweeii A !•.. of III" the niie part, and ('. I >.. mi iiehalf of tlie lielci\\-iiienl inned f'uiiipany, uf ijie oiher part. AA'hereas, the said •'. 1». and Mther'< are aiiiiiit In pmeiire llie fnr- liintinii. nnder the Ontario ("uiiipanies Aei. uf a ("oinpaiiy limited liy shares, liy the name uf The rdiiipaiiy, lainited, with a capital (d" !. [//«')•(' irill fiilliiir ntriniin rlailsiK iin In irliiit rriilinrr uf title the n iKlnr in tn shmr, iinil iilicii iniil irlirrr thr inircluinr t'.s to hr complctvd, <■'('., (7c. 1 (i. If this a^'reeineiit is not ■■idopted hy the ("ompiiiy liefore the (hiy of next, either of the |>arties liereto may. hy nidice in wrilin;; to the other, rescind the s;inie. As witness the hands of the said parties hereto the day and year first ahove writ t ten. i(\ 1)., meiilioiH'd in tlie Jiliove form, is a nominee of tlie persons who are ahout t<> form the Company. He may he one of thom or a strnnpcr. Such an agreement is commonly leferred to as a " pre- liminary ajk'roeiiu'iit.") Iiii f ■ .! 292 I'OU.MS. FORM NO. G. I Xos. (J, 7. CONSENT TO rSK OF KIU.M NA.MK AS NAMIO OF I'KO- roSFM COMTANY Willi AFFlOAVI'i' OF FNK( I'TIO.N. Ill tlif niiillcr of till' iipiilii'iiiioii nf iiiid oliicrs for iin(ir|M)riili(iii iiiidcr the OiUiirio romiiiuiifs Act as The Coiiipiiii.v, Liiiiilccl. I, III" the ("ity of 'I'urcpiilu, in ilic ("(uiiity tt( Vurk, Mci- t'li.'iiit, (Mrr.viiii; on liiisiiicss tit the said ("il.v of Turdiilo inidcr Ilic llMliic (iT , lici'cliy ciinscilt tliilt lilt' iiiiliic, Tlic ('oiiipiiiiy. Liiiiitt'd, he irr.iiilccl to ilic ciiiiiiuiiiy. iiicorhuriiiiDii nl' ip wliicli is now lifiiij; soii^^iit liy visions of ilif Oiitiirio Coiiipiinics Act. Wilncss my Iwiiid al Tonuilo, this rp and others under tiie pro- day of I'.IO Signaliin \\'itiu"ss; I, of tile City of Toronto, in the County of York, Student at Law, mike oath ;ind say. That I was personally pres- ent and did set whom I personally know, sign the above eonsent at the said City of Toronto. Sworn before me at Toronto, in the County of York, this day of lilO Signature: A Commissioner, i't( FORM NO. 7. CONSENT TO rSE OF NAME OF AN EXISTIN(; COMPANY AS NAME OF I'HOl'OSED COMPANY'. In the matter of tlie applieation of lud otiiers for iiKvrporatioii undi-r tlie Ontario Cmiipiinii's Act as The Company. Limited. Under the provisions of Section !(• of tlu- Ontario Companies Act. The Company, Limiti'd, hereby consents to the use by tile aptiliiants herein of the nani(> of The Company, Limited. Dated at Toronto this diy of A.D. U)() . The Company, Limited, Witness: rresideiit. I L.S.I Secretary. This Form is for use where an existing company is disposing of its busiii(>ss to a new company. It should be verified by an aflidavit or declaration. n >, '. Nos. 8, !).] NoTicK OK ai,i.(.»t.vi;nt ok siiaijks. 208 FOItM NO. 8. NOTICK OF A I -LOT mi; NT Ol' SHAKKS. 'I'm-: Hamilton- Stiivi: ( '..mpan v. I.r.MiTKD. 0(li<(', NO. loo Kiiiir si reel ciist. I Iimiilldii, lOili .Mii.v, llliio. Slli.-Tllc I'rovisioliill Oirccldrs I:m\c this d.iy nil,, tied tn yni\ two liiiii.lr.Ml siiarcs in tl„. nl.uv.' ( "unrpiiiiy. in ■.u-rnv,\uiur witli .VDiir ii|i|iliciiiciii. Tn. TllU.NtAS TaVI.OI!, S('crc|;||'V. Il.'iiiiillun. FORM NO. 9. rnosi'ix-iTs. Till-; IFAMILTdN- StiiVK CiiMl'AXV. !.IMIT|-.Il. Cjipiliil SL'I 1(1,(1(10, in I.OOO Shni'.'s ,f S.'.O radi. I'l-orinUtiitil IHnrlii, k: Wii,MAM John- TM...\rAS, l';si|.. Ilnniihdn: 'I'ijomas Tavi/.k, K<,|.. lliiinillon; .-iikI Thoma.s Huicmt 'I'aylou, Ksi|., Iliiniilidn. t^ccrt liiiii : 'I'lIOMAS Tavi.or. Itituki m: Tin: Hank c,p 1 1 AMii/rox. 'V\w iriunilton Sldvc ( "(iin|iiin.v, Liniiicij. is iiciiif; fonnci] f.,r flH> l)iiriif)s<> of fiUT.viny: on tln> Inisincss of niinnifarUirinf,' stoves iind fnniiici's of ;ill (loscripiions. OwiiiK' 1o IIh' l;irj:cl.v iiHTctiscd drinnnd for these iirtieles. as i'ompaced with nn.v in'evicnis i)erioii, ami tin' fariliiics whicli tliis eity JifTords for their nianiifaeliire, a prolit; of at least lit) per cent. Is assured. For this i)iiri)os(>. the enini)any iirojiose to erect KiuK Street, East, Ilannlton: — To the I'roriKioHftl IHnvlors of Ihc llnmilUin Store Comiuntn, Limited. (Jknti^rmen, — Please allot me two lumdred shares in this (.'ompany, on aoeonnt of which I have deposited the sum of !fl,(JUt> to the account of the Company, at the Bank of Hamilton. •Siijnalure of .\i>itlicant. Ilannlton, 1st Miy, liHit). FORM NO. 10. PlfOSPECTUS WITH I'KEFEIiEXCE STOCK. Canada Cyclk and MoToit Compaxv, Limitkd. rro be incorporated under the Ontario Companies Act.) Share Capital i^sti.t »0( >,000 Divided into (•.(»,(MI(I Shares of .$100.00 each as follows: 7 per cent. I'reference Stock " Cumulative " | r'.O.tMlo shares | !i;:!,0O0,(i()O Common Stock [;iO,000 sh;ires| .fit.OOO.tJOO DIHKCTOUS. I'resi(le)il: W. I']. II. Massky, Esij.. I'resident Massey-11 arris Co., Eimited. Vire-Preaident : Hon. (Ji:o. A. Cox, I'resident Canadian Hank of Commerce. Hon. Ev.ma.n Melvin .Tones, Wakhf.n V. Sopicn, Esq., (ien.-Mgr. Massey-Harris Co., Mi'ssrs. Ahern iV: So[per. Ottawa. Limited, Tdronto. J. W. Flavki^li:, Es(|., E. L. (Joold, Escj., ^lan. -Director the ^^'m. Davies Co., President (ioold Hicycle liimited, Toronto. Co"y, Limited, Brantford. E. Iv. Thomas, lOsij.. ?,Iessrs. H. A. Luzier iV Co., Toronto. IhDiliers: Till-; Canadian Bank of Commkrci;. Sol iei tors: Messus. Ryckman, KiiiKi>.\THiri< & Kerr. Transfer At/eiit for('iic(. Slock Iiiis alivi.ly Ikmmi siihscrilKMl for l.y itTtain of llic Din-ctors. and will 1m- iillodci t- tlicni for cash. ■li.'dO.OdO of the I'lvfiM-cncc Stock is reserved in the Trejisury of the Conipiiny for pnrposos of its fntnre operations. The National Trnst ("onipany, Limited, offer for imlilir subscrip- tion the linlance, viz.: !i;2,(nHMHHI 7 per cent. Cninulalive l'referpnc(> Stock at p:ir. Canada Cycle and Motor Company, Limited, is to lie incor- porated nndor the Ontario Coni|ianies .\c{ to acipiire as ;.'(iiiiu' con- cerns the hnsiness, as mannfict nrers and ilealers in I^icy •les .-iiid Bicycle I'lrts. now <'arried on liy tlie foilowintr well known Com- panies: Alassey-Hnrris Company, Linuted: II. .\. T.ozier iV: Com- pany (Clevi'land liicyclos); Welland Vale Mannfad nrini: Company. Limited; Goold Bicycle Company, I..iinited: (Jendron Maiinfactnrini.' Conii)any, Linuted, including the i)lant, machinery, tools, stock-in- trade, tixtnres. ])at(>nt ri^lits, tr.",ie marks, tr;ide mimes, copyri'.rhts. ,i:ood-wiIl and leaseholds of tlu' aliove njinied conipiinies in connec- tion with their said hnsiness; :nid inclndiiiK also all the real pro|ierty of 11. A. Lozier iV: Company, and Th(> (Joold Bicycle Company, Limited. The ('(iniiKiiiii K. — The bicycle industry is one of irre.il impoitJince and HiajAnitnde in Can.ada. The constitnent Companies are the lead- ers in the trade. Their Tra(l(> Marks and lirjimls ,ire everywliero pojinlirly known and by reason of their world-wide I'epnlatioii for nnrivalle(l eX(('llence some of tlu' Comiianies enioy a lariri' and .urowiny foreign trade which offers a favonratile tield fnr develop- ment and which this Company iiroposes to extenil. The Conipiinies .irive employment t. Kach of llie above n.tnied Couipinies has cov.'iianleil not to en;j:afi(' fcu' lony: jieriods of ycjirs in iiiy iaisiness compctinj; with the bicycle business of this Comiiany. .\(t IJiiiiiinijs.—Tlu' steady pro;:ressive charaiicr of ilie business of the cowstiluent Companies is shown by the fdlinwin- Accoun- tants' certilic.'ite: We certify that the combined net protits in the Imsiiiess of Bi- cycles and Bicycle Tarts of the .Massey-I lairis Co.. Limited, II. A. Lozier iV: Co. (Cleveland Bii'ycles), Wellaml N'lje Manufai'turint; Co., i 2!)() FORMS. [Xo. 10. I l-iiniicd, 'riH< as follows: 1S!m;-T Sl!M).!n4.tt2 ]S!(7-S .Wt»4,!Ml7.(t:'. is!t,s-i» !t;;5;!().ii ."..:',.-• (Jco. Kdwaids, F.r.A. Alex. Ilart-Sniith. V.\.. Auditors. Toronto. Caiiaiia. Aii^nst 2Sth. ISIt'.l. Ailniiil(i{irs. — Aiiioii;:st tlic advaMta;:i'S to he grained liv lliis aiiial- KMiuation of iiitcrt'sts. Ihc followiiiR may ho ciniiiicrated: Firstly— lii'dnctluii in scUin;: and distrilmtioii cxiicnsos and ad- vortisinjj. SeooTidly — 'J'lic cfononiiiis and iniprovcnicnts in i>roducti('n arisinir fi'oni the practical kno\vlt>dfri' of tlio nicnihcrs forniinir the lioaril of Kircctors which will lio .'i vail i hie for each hranch of Iho hnsincss. Thirdly — Tli(> ccononiics due to consolidation of niana^cnicnt, lUiiniifaclorics, olHco work, ami of hnyin^. distributing, and tinancial arraufrcmonts. The r>ir('ctors arc fully nlivc to tiic dcsirahility of conscrvinj; tlu^ individuality and iniliativc of the various husinesses iind will not allow consolidation to act dctrinuMitiiliy in these matters, hut there are obvious advantages to he gaini'd .as, for t>xanii)h>, in buying in large iiuantities in the best markets, in the supi)Iy of ample eapit;il and in the manufacture of a large outi)ut of high grade wheels .at prices to meet tln^ demands of the ])ublic. ilminncmivt.—'l'ho managi'ment of the Company will be in ihe hands of exi)erienced maniifad with the leading bicycle compiinies of Canadi in lh(> past, and have made a success of the business. Wm-l-hiji Cai^itdl. — The Compan.v will commence business with- (put any bonded or mortgage dcdtt and with a working capital in excess of .$1,000,000 exclusive of the iidditional capital available from (he issue of the rreference Stock in the treasury ($riOt»,000.) 1)\vulrnilH.—'V\\f i)reference Shares shall conf(>r the right to w fixed cnmuliitive preferential dividend of 7 p<'r cent, per annum accruing from the date of payment by subscribers, to be provided for out of the net earnings of the Company, before any dividends are paid upon the common stock, and the further right to repayment of capital in priority to the common stock, but they will not be entitled to further participation in |)rofits or issets. If in any one year dividends amounting to 7 per cent, are not paid on tlie Preference Stock th(> deticiency shall be a lirsr charue Xo. 10.] I'KosiMXi'fs wnii i>iu:i'i;i!i:n('i; siook. 2!)7 Wftmr \\\»i\\ I lie net (' ifliiliiJfs (if I lie ('ciiniuiii.v, Jilid sluill I'O paid siilisc- i' set ijiart. for thr coiii- iiion stock. ]>ividcnds will lie pjiyaliir li.ill' ycMi'ly oil tlic Isl days of .May iiiid .Novciiilicr or siicli olJK T liair yearly dates as tiie Directors may dftcnuiiH'. licsvrn' Acciiinil.- '\'\w ('li.-irler oi' iln' ('oiiipaiiy will provide that 2Ti per cent, of tjie liilaiMe o|' the net eariiiii^'s. after payment of the 7 per ceiil. ilivideiid on tiie rreierence Sloek shall ln' aiiiiiially transferred to ,-( reserve acioimt in ihe lioo]r that the jiosition of the preferred shares may he ren- dered independent of any jiossilile coiil inireiicy. Aiiliiinohiltn.— U is intended that an important jiart of the Com- pany's nndert.'ikiiiir will he the niaiiiU'actiire and sale of motors and motor vehicles. This la'amh of husiiiess is a natural oiiturowth of the P>icy stoc'k of the <'onipin.v listed upon the 'roroiiio aiicl .Montreal Slock l-^xcluiiiircs. •S'J.tliiH.tinn 7 per cent. Preference Slock ill tlie aho\(' Company will lie offered for imlilic siihsc'ripiion at jiar on Wednesday, the (;th day cif Sc>ptenilier. lS!t!t. iia.\alile as fcjllows: ."• per cent, on iliplic'ation and the hiilaiicc of !l.") per cent, on allolinent. The riu'lit is reserved to reject or reduc^e any applic^ation, and suhseription farries with it an a^'reeineiit to ac'cept such reduced ainoiiiit. The failure to make paviiieiii w lic^ii clue forfeits the pre\ioiis p.'iynieut. Ill ease no allotment is .nacje the anioiml deposited cui application \A-ill he retnriied. Suhseription Lists will open at the oiliccs of the Xalional Trust Ccuniiany, Limilecl. Toronto and Monti'e;il. .'iiid at Ihe Head Ofliep and branches of the t'an.'idian Hank of Cciiiinicrce at 10 ;i.ni.. on Wednesday, the fttli Seplemher. 1S!)!». and close at 3 o'clock on the followin;: ihiy. I'^ornis of I'ower of Attorney to suhscrihe may he had on ap- plication to any hramli of tlie Canrilian l.iaiik of Commerce. 298 FOHMs. [Xo. n. FORM NO. 11. rTfOSlMOCTT'S OF A MINING COMrANY. The KQriTAHi,H .Minint, and IMcvki.oping Pi )mpan*v, of Ontario. I^i.MiTi:i). (N(i rfi-0,(MM) Divided iiitii 1,(MK».(M)(» Sii;ires ,>( Sll.dO eiicli. Pret'efeiice Stock. l.'d.ddU Sliai Ordinary Stock, S.lO.lMH) Shan 1 nt ».0(M t ,sr.(»,()oi) !}tl,0( )(),()( »o I>if(ct(jin. Mr. Duinld Mackay, President, ( Vici'-I'resident of the Ontario Hankl, Toronto. Mr. Ah'xaiuler Mannintr. Toronto. Mr. Wui. II. Conistock, M.V.. Hrockville. Sir Thomas W. Taylor, (Presi- dent Manitoiia Trusts ("o.. Director Central Canada Loan and Savin;rs Co.). 'I'oronto, Mr. (>rlando U. Spraj^iie (M OwiU'r), Malone, etc., etc. me IiOAF (Je KOAI". IJegistrar of Stock .-md 'I'ransrer A,ii<'i,t; 'IMie '"rusts and (Jnarantt Co.. 14 Kin^' St. West. Toro,i1o. liaiikirti: Tm; 1 IK MA.N'K' (I [■' M(i.\Titi:Ai. Head Otiices of tlu- Coniiiaiiy: Till'; Ma.n.nin(; .Vucadi:, Kinj;: St. AN'est. ToriMito. The I'^qnitahle Miiiinu- and Develoimient Company of Ontario, I.iniited (No Personil I>iahilit,\' I. was oi'uanized for the inirposes set forth in their Charter, heiim the powi'rs frranled under The Ontario ^liniiifr Companies Incoratiun Act, ii synopsis of such powers lieiii},' as follows: — '* To open, develop, work, smelt ■ami mamijre iron and other "mines; to aciiiiire hy ptirchase or lease or other le^ral title, miiu's, " mining lands or mim-ral properties; to constrnct, m;iintaiii on the No, 11.] IMJOSPECTUS OF A M1N1Xiiipiiii,v ,'ston. is as follows: — ron oxide I V\ Sulphur Titai MS'; =.-l.:!-j:;'; .Metalli.: in losplionis iieni oxnl iiuiii ill oxiile .lit iX'C Tills stoek is tiein;.' sold to '-rovide funds to he used in develop- iiiLT the properties of the ('oinp.iiiy as .-nnliorized by the ("harter. The demand for iron ore warrants the ('oinp.Miiy in eiiteriiiL' upon these oi)erations. .\s there is a sntlieient quantity of ore, the minim.' of whiili will require in.any year^ md .as tl le demand for this par ti<-iili is iiiereasinj.'. the ('ompaiiy anticiiKite from the sale of its ore a larire yearly iiiroine. B y ii con tract made with Tiie Hamilton Steel ^- Iron Com- pany under djite of the liitli Auiriist. isiiK, the Company reieives, fil'ler deduct iiii;- all expenses of miiiini,' and shipiiiiiu'. a net iirotit of .$L'.(I0 per ton. Th no iiidiistrv in Canada to-day that olTer? re Iter n ttiriis than the ininiiijr of iron ore when it can be produced at rca- sellable IirK'C The bouiit y ;ii\cli b,V the ( io\-ernmellt of .Sl.'K* per Ion on iron inadi' from ()iit;irio ore is to eiiconrajie tlio [irodiictii.n of Ontario ore, and enables the smelter to pay for such ore more thin can be ;;iven for foreii:n of (Mitario mr. The bounty of iid.no per ton on all iron prodiiceil from Ontario ore means that the Coiiiiiany have 'rce mining.', iiid their property, sitiiiited iis it is on the w.'iters of the Kidean Canal, irives ;i low cti.st of lr;insii(n't;itioii and enables the Company to place its ore it .300 FUKMS. [No. 1 1 . «■' r the existing siiii'ltiTs iiioiv chcjiiiiy jluiu any niinu at invst'nt in Ui;tariu. rriftnrd Stork.— Tlw rri'l'crrcd Stixk UdW oircrcd is ontitl'.I to iiri'l'iTi-ntial Cuninliitivc Divide. ids of S per eeiii. per annum, payalile ;uarantee will he [ilaiidy set forth on the Stock ('ei'liliiration of tiv«' years the deficiency shall bo a charge upon the next eirnings nf the Company and shall lie paid before any dividend shall he paid or set iipart for the conimnn stock. licfirne nr Uv^t Arroiiut. — Aft(>r payment of S jier cent, divi- dends on the stock of tlio Company the balance of the net earnings of tlie Comiiany shall he annually trans^'p; /od to a Ueserve or Itest ncconnt until such Kest reaches the su''. ■ .^'J.'iH.OllO. jii which sum it is to he maintained, and if it is fit . iine dra\vn upon it is tn lie in like manner restored and maintained. A large amount of the onlinary stock, viz., .*j;4riO,0( M\ is held hy The Trusts and Guarantei* Company. limited, to bo used for the purpose of the Company luily. and when iiny i)art of this issue is (iff(>re(l for sale holders of the I'refereiice Stock shall be entitled to an alhitinent in \ho same lU'oiiortiou and at the same price as the same shall lie olTered to the common stock hulders. Application will be made in due course to have the stock of the Cempauy listed upon the Toronto Stock I'^xi'hangc. l,')0,00O Sliares of $1.00 ,>acli at par .^l.'O.OOO I')ividen years at 8"^^ by T!ie Trusts and (!uarantee Company. No. 12.] STOCK <-'l':ilTII-'ICATK— COMMON'. ;{() I .*& 00 .2^1. J. 'J **^ >-. t^ UJ _ j <= 1*1 ^ C *• < X p 1 ^ ? ? •C :^l \ e O ^ ■5: "xj < > ? ^ ^ I ^ ? ^ 1 ^ "^ ^ ^ 1 '> *** -^ -2: •r. 1 "^ •> •- "? ^ 1 O "^. V, ^ — V; 5; "^^ ^^ i-j ' ^ X i a T 1? I 5 ■** v ia o 1 5 =, 9 r~ ■" -5 *^ 4 ~ i ■ = = -o r ■■ "^ O c ^ fa ™ 1 i ;? ^ .2 ^ ^ ^ 3 ■^ r-l 1 i! -^ 7. J. ^ =5 1 f l|.| I 1 .1 3 d <: ■£. :< o 9 ' / -2 ?5 .-s ^ -2 1 \ fe i 1 r CO = 1^ S < < O -T. 6 z •^ -^ ^-i -S 'J^J '■5 XL )4 J C4 •h: )V3 OSS 'S3HV. S 1 5 >i ■-J. it 1—4 X -.^ ^ 4^ 2 5 OS ■>i "S 3 o s = in C 5 O J ^ 2 V •c 1^ ,. H be s c = • C "^ <; — < ^ s o ^ s ^ 5? s ^ '^ :§ 5 ?■ cc ,V or c o ^ H h— * -< a •*- -a- ?-. 2 £ Si 1 : i T 1 ■ i 1 , 1 i! rr'i n i! :i02 FOltMS. [N<». 18. SHARES $100 EACH O r^ lo (0 Ul (0 «»* C UJ rv^ Q « yy o r o ^- ^ ft O p^ u Oo o ^ -1 ^ •^ C •i -= •>. K ~ 5 ^ v; ;^ a> ti *w I . ^ .= = <■ •^ :; o t: s. ■pOABlU'J «0 •.tiKi)Kili.^}l i>ui>)U''Dy .i^jauDjj fiq 'I'liniinj 'oiiio.toj 'l>,>iniir[ '•(),) is'ii.ii liiU()iii>\- jqj — ]i.>.i.>)ii!l!,)![ i>ui> )>,nilhiij,>iuiioQ HOV3 001$ S3HVHS ^ *. oi C'^ ■1 I C 1 -> vT »; h &k^. mmm No. 14.J I'KMI'KUKNCK Sl'ucK (Kiri'l l"l< Ari'. .•U).S y. o ^ ^" < « -:: ;v; I— I o o 3 "A I cog O f — M » a d z CO - ; -^ ; t>i >i -J 2. i.-^ S. ■£ ;• ~ c 'S ~ "^ -c 'S -"■ ^ ■£ 'V: -c E^ ;;' "■'/ 'k7» '//(•' .1 1 1 >^ II I >■!,/, /)iUJ)n)ll)}l /iiiii /itillin:i 1)111111^) C/2 2 c ; ^.^ 1 >_ " 1 C = 1 "" ^ 1 'A 1 ^ 1 c . "=■■? v: : ' ^ Sj: :{U4 roit.Ms. [No. 1. FORM NO. 15. ill MS?' ririi'iKiN rni{ i.Ki rr.its i'.\ri:Ni'. To Ills IId.mhu 'I'm; !,ii;rTi;N.\NT-«i«A KfiMUt i>|. tiik I'iiovimi; di.' Ontauui. in C'iincii,; ■j'lh' prlilioll (.!' Willilllll .liillll 'riliilllil-^. I'nllllilr.VlllMII, Sllllllli'l Andrew 'rinmisnii, Mim liiiiisi ; 'I'Ikumms Tii.vlcir. < Miillcmiin; and 'I'liMiniis Uriyhl 'I'li.v 111!'. Shivc M iiniiliirl ni it. .ill nl' llic City i.i" Iliiinllliin, in llic Cnunlv <<( Wciii w ml li. and I'luvin.-r nf (liilarin; Henry N'iclor 'I'liyltir, nf ilic Cil.v of New V.nk, in tin- Coiiniy nl" •New York, in llif Slali- > Sliewelli: 1. 'I'liil your leiiiioiiers are de.-ii'nis >>( uliiainini; liy I.ellers Tatent. under the (ireal Seal, a Cliaiier under llie |irnvisinns n( tliL' Ontario Coniiianies Aet (.lied iheinselves and are as- snred that the eorporate name under which imoriioration is soii,i,'lit is not on any puhlie j,'roiind oliJe N,,. 1').) i'Kthkin r«'it i.i;T'n;i!s i'atmnt. :]{): r>. 'I'll ll till' oliji'il I'lr wllirh il|ic||iiHMliiiM is -MMl.'llt li\ \n-\r I ll il imii r < i> II' nil iiiirnrl iiii' ;i III sell s|ii\rs jiiiil rmii fi. 'I'liMl ilii' iiiiili'i'liikiiii: 111' llu- t 'iiiii|iiiii.\ will 111' iiirriril mi Jit llll' {'\\\ 111' I llllllillMll II niiiiiriii. Miiil lli.il it- i'"' Inrrsiliil, uliirll js wiljlij) ||li' I'l'iivillri' "f ' t'l I llllllilllill. S. Tliiil llll' .11111111111 ill' llll' i'.'i|iil;il sliirU 111' llll' sjijil ( 'ii|ii|iaii.\' i-* ti III' iwii liiiiiili'i'il I liiiiisiiiiil ilii|l;irs. ivitli'tl iiiiii liiiii' lliuii^iiinl -liiii'i's '.I. 'I'ii;il ll .'llll sliirU Is In 111' I 111' till V iliilliirs I ill ll. lo. TliMl llll' >-iiil Williiiiii .liiliii 'rinuiiii-. 'riiiiiii.'is 'I'livlni' mill 'riiiiiiiiis I'.i'iuiii 'rn.viiii' .'III' III 111' iiir I'l'i'v isiiiiKii i (ii'i'i'iiii's 111' iiif ( 'lllll|l!lll\ l«/l. 11. 'I'liiii liy siilisi riliiii;; ilicrci'iir in ii nit'in"i'Miiiliiiii nl' ni; 'c.'- nii'iil iiiiil siuck I k, iliilv cxt'inli'il in ilii|iliriili'. \' .i \ii'W In iln* llll iH'liiiI'Ml lull 1 ll llll' < 'nniji.'iiiN', N'mir I'l'lilimirrs 1. '■ lakrii lln lilliiwinv iniiilints nl' slmk Scl lill|lnsltl' lllrll' lllllli 'KTIIIONKItS. Ainiiiint of stock snliscriln'tl for. I'l- iis- iinii;lit al nl' f liny kmiwu inif as ii'o as- llTocU'd y»':ir> Ml, \U Min- ("nlll- hoctilDJC lity foi- III your ssary sc of (1 shall Williiini Jolin 'riioniiis riftyniiii' thoiiHiinil ninii luiiidrctl iloljurs. Siii'uu'l .\nilri'W 'I'lioii'siin . . Oni' liiimli'i'il dollui's. 'J'lionias 'I'nylor Si.xt y tlioiisaiiii (iollars. 'riiomii.-* liri^^lit Taylor.... l''ifly-niiH' liioiiHiiml nine hiuulrnl dolhuH. lli'iiry Victor Taylor (tni' iimulri'il dollars. Geoige Pelf r blniriie Twenty llioiisaiid dolliirs . ^'niir jii'iilioiii'i's I lii'i-rfni'c |n'ay iliai '\'niir Moiiniir nia.v lio pli .isi'd. Iiy Lctlci's I'aicni niidiT llio (Jrcal Snl. to ;:rant a (''laiiri' in Ymir I't'lil inlli'l'S, rolislillll ill!.'' Vnlll' 1 'ct il iniici's allil sinll iillicl's .'IS ll.'ivo or may ln'ininc siilisi rilHTs in the MciiioraiKliiin of A;;i'('i'nn'iil and Slii('k-I!iiiik of till' ('niiiiiany llii'i'rliy rrcati'd. a hmly (•nriioralc ami |iiililir I'lii- llic dill' f.'ii'iyiiiL;- mil n|' ihr iindi'i'lakin-, afm'rsaii' And Yoiir I'l'tiliniici's. as in diit.v liomid. will ovit pr.'i.v. (tn Tlic nirci'lnrs. \\liii imisi lir at least tlircc in nniiilu'i', innst lie iiclitinncrs and sli.i rt'lmldci's. Hdcli lUnclur iiiiinl liuhl xttn-U ,ih- >srARoN'. (J. r. Shahpk. By his Attorney, Herbert Mason. Dated at Hamilton this l.lth day of May, 11)00. tSiijiKituirn of Witiirxiiis. A. V. LouB, as to A. F. Lonn, as to A, F. Loud, as to John (J. (Jmso.v, as to John <•. (imsoN", as to JoH.v CJ. Gibson, as to Eaeh sijjnature must be verified by attldavit, to be made by the v.itness thereto. Signatures by attorney must l)e made under a Diwi-ifiv, not general power, duly executed, \vhich i)o\ver must ae- eompany this applieatioii. This Itule also jippiies to tlie Menuwiuidum of Ajireement and Stock-Hook, but with the addition that the jimoinit of stock which is to be taken by the Attorney for liis principal must be stated. Witnesses, in their verifying affidavits, must identify each signa- ture ill the form in wliicli it was made. I'etitiouers will use their ordinary signatures, and see that their names, etc., in the preamble are correctly stated in full. ■ A FORM NO. 16. AFFIDAVIT VERIFYINvi PETITION; AND AS TO XAME OF COMFANY. Province of Ontario. County of Went worth, To Wit: In the matter of ;he application of William John ThouMs and others for the incorporation by the grant of Letters Patent of The Hamilton Stove Company, Linuted. I, William John Thomas, of the City of Hamilton, in the County of Wentworth, Foundrynian, make oath and say:— 1. That I am one of the applicants herein. 2. That I have a knowledge of the matter, and that the allega- tions in the within Petition contained are, to the l)est of my know- ledge and belief, true in substance and in fact. 3. That I am Informed, and believe that each Petitionei is of the full age of twenty-one years. 4. That the proposed corporate name of the Company is not on any public ground objectionable, and that it is not that of any known Company, incorporated or unincorporated, or of any partnership or Individual, or any name under which any known business is being carried on, or so nearly resembling the same as to deceive. '■^ i ^a.ht^.. No, 17.] I'OWKU OK ATIOKNLV TO SIGN PKIITIOX. .SO? .1. Tlial I liiivi' sjilistictl myself .-iiiil am assured that im jnililic or pi-ivnte inti'i't-st will lie iircjmlieiall.v al'tected liy the iiierji'iKH atiipu of llio ("(jiniiaiiy iis jfoiesai'.'. SHworn before me at the ("ity of llainilton, ill the Coiiiiiy of WiMitwortli, tills seven- teenth (lay of .May. A.I). IIIOU. W. J. THOMAS. John Koe, A JiiHlivc of the I'cace (or a t'ominisnioKir fur tnkimj A/flilmilK, ( ilu' ('(Piiiit,\ 111' I'MiiiliiirL;li, ''i'.v <'!' Kiliiilmryli. ('.Mpit ilisl. to llcrlici'l t>(iitl;iiul. I .Mjisnii, (if tlic City ii|' 'rurniito, in lln* ' rniviiicc (iT UiilMiio, I'^siinirc. I. (Icdi-i:)' liiL'lis. Ill' liic City id" I'MiiilMirirli, SliKlcnt-jiir.Mw, I'l.-iki' tiMtli iiiiil say: 1. Tii.-il I WHS inM'S(iiiiili,\' present iimi did see tile I'nwer iiT At- tiiriiey lierenntii iiniiexed duly si.uiied Miid sealed liy (leofire I'eler Slinriie, one ui' the ipplieiints for inenrpurjil inn as The llaindtim Stiive ("oinpaiiy, Limited. ■J. That I know the said (Jeorire I'eler Shariie. ;>. That the si>:natiire " Kinirdoin of Seotland. this second .lay of May, llUKt. ) iL.S.) ri:Ti:i{ Ktiwi:. Xiitarn f'ulilii: A similar atlidavit shonld h;> furnished verifyin;: Mr. Tnyhu-'s Tower of Attorney. FORM NO. 19. AFTinAVlT VKUIFYINCJ SKJN ATIUKS To I'KTITIO.V. ,, ,. / In Tin: MATTKU of the applieation. under ,, . .. »!• . .1 tin' Ontario Coiniianies Act, of William ( ( unty ot \\ entwortli, . ' ,I(din Thomas and others for Incorporitioii To 'Wit: I as The Hamilton Stove Coinp-iny. Limited. T. Arthur Freeinau Lohti. of the City (d' Hamilton, in the County of ^Vent worth, Student-at-law. make oath and say: 1. That I was pcrsiuially present and did st'c William .lohn Tlionias. Samuel Andrew Thomson. Thomas Taylor and Thomas Iiriirht Taylor, four of th(» ipl''i< •'"'t^ fi'i" ineorporation hy Letters Patent of The Hamilton Stovt> Compiny. Limited, si^rn the petition hereunto anneX(>d. and marked as Kxhihit "A" to this, my atlidavit. 2. That I know the said parties. X«>. 20.] AFKIDWIT VKIMKVINc; S|( ;\ ATCl! i:s. oOll ■■!• 'I'li.'il 111., siminlnivs •• W, .1, 'n ,.,,■■ ,. _^ ^ Tl,,,,,,.,,,, '• ••Tl,.,s. T.ylur," ,„„| •• tI,„s. It. Tiyl,,,-.- m.v iI,.. ,,„,. M^rnalnr,'.. (il (111- ^iiiil Miirlii's. •• 'I'liiil llir siuMMlnivs -A F. I.oM,," .•iii...,i„u' (In. siu'iiMliilvs l"''''''"l"'l'"'i-<' M:..|iliniir,l, Miv 111,, iriir ^i;.:naliir.- ,.r i„r. i|,is .1..|m,im-iiI . Swurii licrurr nil' ;il ilic ( 'ily nl' I Itllllillllll, ill llll' ( 'cilllltV cif Wnilwurili, lliis sc\ niircni li -^- '"• '-'H'.I!. A\ rr \ KKii'vixc si«;.\.\'! ri;i:s in i'i:'rni rxKi;!; I'owdu oi- A■iT<>l;.\l;^ . I*i'j>vi\ci;(.Kn.\-T.\nic., ( I.N- Till.: .m.\tti:i: cf ilu' appli.'in iuii, iin.irr Cniinty or \\-(.||i woi-lli, (111. Oiiliiri.i ( '(iin|Miii..s An. (,r Willi;,!,, „. ,,.. i •'"llll 'riKPiiiiis ami (iihcrs lor Inroiuor 1 1 ioti ' " '' I': '1-1 II ■, . as III.' Ilaiiiiltoii Mov,. ( oiiiii:ii,.\ , Lii,iii,.,l. I. .loliii (;cor^'c. Cilison, or iho Cily or Ilaniilioii. in ||,,- Co, inly <>r Wniiworili. SliKlciii-allaw, iiiaUo oalli and miv. I. 'I'lial I was iicrsoiially iircsciil ;iiii| . 'I'hai I kn..w tli.. sai.l Ili.rhi.ri Mas.m. 4. 'l-liat Ih,. siKiiitur.s "II. V. Tayl,,,. •• „|„| ,;, ,., .Sh.arp.. ■' ,.|n. <>r til.- iir.ip.'r hamhvritiiii.' ..r ih,. .-;,id Hrrh. ri .Ma-on. •"•. That Ih,. si-n,aiiir,.s ".Ino. «;. Cihson." ;iti..Min„^ t|,.. .ii-na- tnivs h..r..iiil„.r.,r.. iii,.,iiion..,|. ,,,•,. ih,. ,r,„. >i^nainiv. or m... il,is . It'll. III. .nt. Sworn li..r.ir.. mo at tli.. City or Hamilton, in ih.. Comity .d' AV.'iitworth, this s..v..|ii...'nili •'•'^'*' ''• '''1''>^<>N. • lily or .May, A.H. Hmmj. ) John- Hot:, -i ('oiiimisxifnirr, rtc. I :no l-'(»l!MS. [N (). :l\ >■ ^ o ^ ■" »-* c3 OJ ^ — ■ S O =»=•-= - ^ ■^ -3 3 5 "3 op as .'3 CO JJ — 3 J3 CO < — ' I- X, ^ ^ J ^ o o o ■J> •/: ^ ^•_a ^--aja-^ ^-52500 -!^.>^.6;5-J ^^^ odd -^ -ti < ►?►?-? t; •3 • oi V c -S ^ a 2 S -8 ■/: = > ^ a * S 5 3 t-i ,, ^ /2 ►H «!5 C 0^2- 3J - 5- l-( . ^ .— •♦-(•-' r o 2 5 t, S O D * ^ — ai ±; >, (1) j= -Tl ^ 55 5 ^ u as -O 1; • '^ =« :h: o ■" ai ^ ■2^3052* ?; o o u ?t3 07: O u U - D 7: 5 ^ " °* SSh-^ o )-^ Nos. 22, 2.S. 1 1?V-I-A\V TO INCKKASK CAI'ITAL STOCK. :ni FORM NO. 22. ArriD.W IT VKKIKYINC SHiNATIKKS TO M HMOKAMU •^I OK a(;ui:k.mhnt am» snK'K-itn«n<. I'ndviNCK UK Ontauk), j In thi: mattkk oI' the iiiiiilicalimi. iiiidfr ('( iiuty i)f Wt'iitworlh, tlu> Oiitiirio ('iiiiiiniiiics Act of William I .Tfihii Tliiiiiias iiiiil (it hers fur rucurpoiMtion ^" ^^''' ' ns Th" Ilaniillon Stove ("ompaiiy, Liiiiitod. r, Arllinr I'-rt't'inan Lotib, of tlic City of Ilaiiultoii, in tin- County of Wcntwurtli, .StH(lt'nt-at-I.,aw, make oath and siy: 1, Tliiit I was [uTsoiially jn-fsciit and did sec William .lolm Tlioniiis, Samiud Andrew 'i'lionipsoii, 'fliomas Taylor, and Tlionnis liriglit Taylor, therein nanu-d, si;;n the .Memorandum of A;.'reenn'nt and StncU liook of the .said |)ro|iosed Company, niarkeil as e.xhiliit "A" lo this, my allldavit. '2. That I know tlu' said parties. .'5. That th(> si).'naturos " W. .1. Thonuis," " S. .\. Thomson," " Th'os. 'i'aylor." and " Thos. H. Taylor," aio of the lu'oper haiid- writin.u of the saiil parties. 4. That tlu.' si;;natun's " A. ]•'. T^olih." attcstin;; the sij,'natnros hciTinljoforo uiontioncd, arc the true si;:iiatures of me, this deponent. Sworn before nie at the City of \ Hamilton, in tlie County of j loun Wentworth, this seventeenth i day of .May. A.I>. lU(Mt. ) .JoH.N I'i'iK, .1 ('dill III issiujicr, . A By-li\v to inerease the capital stoi'k of The Hamilton Stove Company, Limited. "\^'heroas the capital stock of The Hamilton Stove Company. Limited, is two hundred thousand dr the same. l^assed this third day of .lune. A.I». lltUO. W. .1. THOMAS. I'nu'nli lit. TIIOS. TAYLUK [Sot 1.1 Hamilt(ui, Urd June, llHiu. iSicnturi/. The ori.irinal hy-law must lie produced to the I'rovini'ial Secrt-- t:iry. A copy of the hy-law to he retained hy the Trovincial Secre tary shouM accompany the cu'i^iual, and should have ainicndeil to it the \Vurds: "("ertilicd under the Seal of the said Ciuniiany to the llonor- aMe the I'rovincial Secretary. W. J. THOMAS. I'fcsidciit. TIIOS. TAYI.OU, ■al.] Strrrtiiri/. u FORM NO. 24. AFFIDAVIT VKUIFYING BY-LAW FOK INCUFASE OF CAPITAL STOCK AND I'KOVINCJ DUE SANCTION OF SAME. rROViN-(-K ciiMlNT.vRn), , lu llu' matter of the increase of the County of Wt'iitworth. ' capital stoik of The Hamilton Stove '¥o Wit: ' Company. Limited. L Thomas Taylor, of the ('ity of Hamilton. Esquire, nnike oitl- and say: L That I iim the Secretary of the said The Hamilton Stove Company, Limited. No. 25.] 15V-LAUS KOI! r.MJ.INC (ii;M:i!.\l, Mi:i;TIN(i. IM'A ■J. 'I'liiit tlii' ■iiincxi'il iMiKT wi-'niiiu' iii.irln llif .'Inl .Iiiiic, I'.IUK. liy ilic Hiiiil ( 'ciiiip.'iiiy. t'lir ih"' piiiini^c <,( iiicrcMsiiiL' ilii' ciipilMl stuck 111' ilic s.iiil ( 'uiiiiiiitiy Iroiii ilic sum nf iwu linmlri'il i1miiis;iiii1 ilnl- liirs t

    y-l;i\v wns v.-imt inncd \ the ri-nviiieial Si'i retary. fwoi-n before me at llie <"ity uf TIainilloii. i in the County m it •■xpedient th.at eert;iin liydaws fur reirulatini: the affairs uf the ruinpaiiy should he made. \u\v, therefore, he it eii- acleil. ;llld it is hereliy en.Mcted: 2. 'I'liat a t-'eneral nieetin;; of the Shiftdiolders may lio ealled at" any time l>y the 1 >irecturs, when they may deem the same ii<>ees- sary lU' advisalde fur aii.,- inu'puse. imt ecntr.-iry tu law, ur the letters patent of the C'omiiany: and it is iiiciimlient un the I'ri'sideiit to e.dl a sjieei.al meetiiitr id' the Sharelndders \\ heiiever reqiiired su to do ill ^vrilin^, by uiie-funrlh [larl in value uf ihe Sliarehuldei-s uf the Cuinpjiny, fur the tr;iiis;ici iuu uf any business si>eeitied in such written reiiuisition iiud notice, callin;,' the nieetiiiir. .*?. That notiet' X(^(l iiaper lUitiked •'(*" is a true and eorreet copy of Uy-laws Nos. '2 and .'!, reKiiiatiiig the ealiiiig of special general meetings of the Conii>iiny. S\vori\ before nie it the City of Ilaniiltoii, ) in Iho Comity of Weiitworlh. this . TIIOS. TAYI-Oll. third diy of .ImH>, llMMt. i iTonN Koi:, .1 ('oiiimisHiovfi', lic. FORM NO. 27. NOTICE IN LOCAL MOWSFArKU OF A SL'FCIAL (!FA- FKAL MFF/ITNtJ. •A" Not I OK. A Special (ieneral meeting of the Shareholders of The Hamilton Stove Company, Limited, for considering and sanctioning Hy-la\v No. '2'J (passed liy the Company ."ird of .Inne. liKKM for the increase of the caiiital stock of the Compiny fnnii the snm of two Imndrod thonsaiul dollars to the sum of two hundred and lifty thousand dol- lars, hy tlu> issue of one thousand shares of iumv stock at tifty dol- lars each, will be held at the Comp!i:)y"s Otlioe. No. 1(n> King street east, in the City of Hamilton, on Wednesday, the 11th day of .Inly lU'Xt. at the hour of 10 o'clock in the forenoon. liy Ord.M-, TIIOS. TAYLOH. Sceretaru. This form may lie used for notice in Tho Ontario Gazette if neces- sary. XoH. 2S, •2!l. 1 .\FFii>AVir i'it<»vi\(i noiki; ok M|.:r;ri\(;. .'{1.") FORM NO. 28. wM'Fin.wiT ri:(»vi.\<; i>i i: calmn*! oi" a chnkuai. Mi;F/ri.\<; am> vkiui'VIn*; .soricK i\ r.orAi, NKWSI'AI'KK. I'noVINCK (II' O.VTAUlo, ( , ,, .. ,. /I 1 M .• I. Tliiiiii;is 'I'li.vlor, (tf till' rit.v nf I liMiiilloii, in llic <' of liw said ('onipany, incrcasiiiL: Ihe capital stock of tin- ('oiiipMiiy from tiie sum of two hundred llioiisand doiiirs to the Slim of two iinndi'ed and fifty thousand dollars by the issue of one tJiousand shares of new stock of fifty dollars each, .'^worii liefore me at the City of Hamilton,! in the County of Went worth, this llth TllOS. TAYI/Hl. diy of .Filly, A.I). IJKIO. ^ .loH.N l?(ii:. .1 ('viN(; i»ii: cAi.r,i.\<; of <;f.\hu.\l mfft- l.\<; WIIFKF NO P.V-FAW F(//i ANI> VFUIFVlNt; NO'I'ICF IN LOCAL NFWSI'AFHK ANI» ONTAUlO (JAZFTTK. 1'kovince of O.ntahio, r III the matter of thi' callintc of a County of Weiilwortli, - Oi'iienti .Meetiiii.' of the Ilaniillon Stove To Wit: ' Coiniiany, Limited. I, Thoiiias Taylor, of tho City of Hamilton, iu the County of (h) If the iiieetin;; was called under special provisions in the Ch.Trtcr, tin? allldavit must he drawn to suit the circumstances. :i 5 ■ i |. ■; i , > i ii ;f ;i 1 li u . 1 ) '.\\i\ roitMs. |N... MO. ^^■t•lll VMillll. SriTclMI'v 1)1' llic jiImivi'-iiiiiiiciI <'(iln|i;Mi.V, lli.lkf iiiilll iiiid say: 1. Tliiit n iiuliiT ciilliii;: a Kciicrnl iiu'clinir nl' Tlic llinnilinn Stuvf ("(inip.'iii.v, Ijinilctl, lor tlic lltli ihiy of .Inly, I'.MMI, at tlic < '(inipiiiiy's Ollicc, ill ilic Ciiy ul" I laiiiiltnii. I'nr the |iiiriinsc of nm- sidcriiiK ami samliiminK Hy-liiw No. •_".» (made liy llic DirciMoi's .'frd Jmic. 1!tO(t(«l iiurcasinv' llu' caiiital stock of ilic <'oiiiiiniiy I'i'oiii the siiiii of two luiiidi'i'd thousand dollars to tlic sum of two Iniu- drcd ind fifty ttioii'i of W'w slock of lifly dollars each, was inserted in Thv lldiniUini 'I'inirn. a newspaper pulilished at the head ollice and iliit'f place of Inisiness of the Coiiipany. on the 1st day of July, IJMIO. '2. 'I'hat at least ten da,\s' prior notice of the said meeting,' was {.'iveii in the si id V'/ir ll. That the clipping: from the s.aid 77ic (hiturio tition (d' tlie Hamilton Stovt" Company, Limited, Hiimlily Sheweth: 1, That The Hamilton Stove Ciunpany. Limited, was incor- porattMl tinder the Ontario Companies Act iiy Letters Tatent, dated L'lst March, A. I). 1!) < 'iiiilli I li.\ \\;l-i liy till' siliil I.ctliTs l*;ili'nt, lixcd lit two liiiinli'fil IIkmimiiiiI ilnlljir-^. .it uliirli iiiiii' tfiit lis liiis liccii tiikcii ii|i jiiiil It'll IKT ci'iiliiiii llicnnii piiiil ill. .'{. 'I'luit the sjiiil ciipiliil is iiisiilliciciii for ilic inirpuscs oT the siiiil ("uiiiiiMiiy. ■I. 'I'liiit tilt" ('iiiii|Piiii.\' III nil', ipii tile tliiril ilii.v . Ifino. a H.v-liiw iiicri'iisiiiK ilic ciiiiilnl sinck ui' the ('uinpnii.v to tlic sum nl' two liiimii't'il aiiil tift.v tliniisiiini ilnlhirs, siicli Miiiniiiit liciiiir • ■'iisidcrcil liy yciiir pctitiMiicrs rciiiiisitc fur tlir iliU' ciirryinn diit nf tlu' olijccts 111' lllc ( 'iiiiijiiiiiy. .". Tlinf till' siiiil r>y-li\v wiis siiin'tiniuil by m \(it(' of iint less tliiiii twii-lliinis ill viiluc oi' tlic SlKircliiijilcrs tit m ki'IK'I''-! iiUM'tim* the ('(iiiipimy (Inly culled f( ■^iili'i-iiiu tilt' sjiiiic. ludd at the rily uf Ilaiiiiltiiii oil tlif lllli day .il' .Inly, A.I>. I'.HMI. V. 1!l;iialiiri'!s of tin; saiil jiartii's. 4. That tlu- HiBuatiiic " .lohii Uoc," itti'stinj; tlic siy;iiatiut'« hi'ri'iiibi'foro int'iitioiiL'il, is thu ti'iir siK'natiirt- of iiic, this (Iciioucnt. Sworn licforc nio at ' 'Mty of llaniiltnn, | in till' County ol cS»orth, this lltli JUllN UOE. (lay of .July, 11) i- Wlinciis iln- cniiilal stniK <•( Tlu> tlioMstiiiil (lull ir-. ili\ iili'il iiiti) 4 oiiipniiy. I.iiiiilfil, Hhnt'c.H of ilollni's ciK'li. And w liiTi'iis lilt' cnpiliil slixk <>( tlu' sjiiil < 'Kiiipiiiiv is t'l'iMltT lliiMi llic n'liiiin'iiH'iils III' till' ('iiiii|iun.\ lall fur in tin' rxn'risc n|' its iMisiin-ss, (Of, anil whereas the v«hie ol' the ( '(inipan.v's iiruperly has Ki'i'iiliy decreased, v redncinj; the capital stuck ol the Company Id tin- sum of duihirs. Nuw thererure, 'I'he lews, that is III sav: Cii'Mpany, l/nnited, eii.icls as lul- 1. That the capital stuck nl' the said Cumpany lie, .-ind the same is hereli.\- decrciiscd rniin Ihe sum nl' In the sum (if of ddllai'i thoiisaml dollars divided into i each. thousand dollars shares 'J. 'i'liat the iiresent shareholders of the Comiiany shall he en- tilled to receive one share of Ihe hereliy ledmed stock ol" the value of dollars for each share of the value of (iollars now iu'ld tiy them. ((>/■ That siicii reduction he effected liy cau- cidliii),' paid up capita! to the extent of or, by eiiicellinK the present liability of dollars per shar*-. dollars per share). y. That all Stock (.'ertilicites ihjw issued be returned to tin? Compiiiiy to be cancelled, and that new certificates in accordance with the ti'rius of this by-law, lie issued tu the shareholders for the uumber of shares now res[iectively hidd by them. rassod this first day of March, A.l). I'JUO. [Seal] 1st March, 1900. President. tSecreliup. The original by-law must be produced to the rrovincixl Secre- tary. A copy of the by-law to be retaiiU'd by the Provincial Secre- tary shoidd accompany the orijiinid. nml should have a|ipendcd to it the words: " Certified under the Seal of the said Company to the Honour- able the Prov'ncinl Secretary." [Senl.] Fits ill rut. Sicetari/. J i! I f' , i: ! 'A'lO roiois. FORM NO. :i4. |No.s.;n.;i.'). r.\ LAW in('ui:asin(; ((Hc niiriii; \siN(i) riii'; mmiikii or iMi{i;r'i'(»i{s. llv LAW NlMliCli .'!(•. W'licii'Ms ilic miinln'i' 111' the I »ii«'iliiis i>\' 'I'lic Ilninillon SImm- ( "iiiiiIiMiix . I.iiiiili'il, is three lur, kn lln ctist iiui\i h \. iiml il is cxiii'd itnl tluH llif iiuiiilu'i- sliiiiiM lu' iiitTf iscil : N()« . (iu'rcrorc. tlic said 'Tlu' llMinilidii Stove ( 'ninpniiv. \Au\- iled, eililvts ns lullows: Tliiit the iiiiinlier til" lUreelnfs dI" the sniil «'imi|i!itiv he .uul the .sjtilie is hei'eliy iiiefeilsed [ IIKHi. \V. .1. IIIOM \S, I'll niili III. I Seal. J I'llOS. I'AYMMt, Seen till II. Saiieli.iued tliis .deveiilh day of .liil.v. A.M. I!l Ham- ilton Stove ("oni|>any. Limited, hefeliy u:ives pnlilie notice that it has saiu'tioned a l>y-law for the purpose of inereasiii;: the nnmlief of Directors of the ("ompany. of which the following;' is i true co)iy: " WlnM'eas tile n.indier of Oirectors of The Hamilton Stovt> Com- pany. Limited, is three lor, nx the nisr muii fi( t, and it is t'xpedient that the luimher shonld he incfi>ased: " Now. therefore, the said The Hamilton Stove Conipji;iy. Limited, enacts lis follows: i y-tH.'.M/M \ IIV-I.VW r||\N(ilV(i MK.M> ( »I'M( i;. '.il\ " 'I'liiit tlif iiiiiiiliri' III' I tlri'i'turs III' llii' siiiil < 'iiiiipiiii.v Im' Mini (lie snilf is luTcliy ilirrrilsi'il In livr." W. .1. IIIOM AS, (Sriil.l I'liHiihiit. IIIOS. rAVI.oli, lU (•(■( /(/)//. I>i)l«'il ill lliiniilliiii, lliis (■li-vciilli (Im.v III' .Inly, A.I». I'.MHI. This imliri' iiiiiv lir iiiliijilril fur imlilisliiii;: in iniliirio ihmllr, r«\ Inw rli;mt;illK hrJIil ulllic. ',i:ti'i:, ITiim- it li;>s (ll.T of copy; (> Coiii- l)i'(li*Mit FORM NO. 30. AI'l'lhAN IT fUONIN); IT MMTATK ».\ IN (>\r\lfl(tU\/.iriTi: OK 15V LAW riiA.\<;i.\<; mmkim! HI" i>!i;i;< rows. I'Ul l\INl '!■; I II' ( >.N TA nil III III)- iiiiillir III' liii' l>y l.'iw III' Th roiiiilv III' Wriitwiii'lli, lliiiiiilliiii Sluvc CiiiiijiMiiy, l.iiiiiiiMl. 'I'll Wil: ( liiintriMU III!' llllllllll'l' III' till' Itil'l'l'll il' t III' siiiil < 'iiiii|i I iiy. 1, Tliiiiiiiis Tiiyliir. ul' llir City nl' lltiiiiill mi, in liir ('miiily o|' Weill wiii't II, Msiinii'r. iiiiilii r, lie. Tliis jiHiilM vil miiy he .'hImiiIiiI fur use in e.'ise nf llie reinuvil uf llie lioiitl iiliii e uf the ( 'iiinjiaiiy. FORM NO. 37. i?Y-i.AW ('iiA.\«;i.\(; iii;ai» oifick. Ky-i.aw Ni'mukk lin. Wlieroiis (he Ileiiil Olliee uf The lliiniillun Sluve < 'uiiiiiany, I.iiiiitetl, is ill tiio Cily of Ilamillun. in llie ('uunly uf Weiitwoi'th, and I'roviiKo of Ontario; \V.8. !)..>!. — 21 m^^i 322 FOllMS. [No. 38. Aud whorc'iis it has bt'ou tk-omfd oxiiodk'Ut that the same should be thaiiyod to tho City of Toronto, in the said Province; Therefore The Hamilton Stove Comiiauy, Limited, enacts as follows: , 1. That the Head Ollice of The Hamilton Stove Comiuuiy, I-iniited, he and the same is hereby changed from the City of Ham- illon to the City of Toronto. 2. That this Ky-l;i\v be submitted with all due desi)ateh for the sanction of the Shareholders of the Comiiany at a General Meeting thereof to be calli'd for considering the same. Passed this ;•,! ' ' ly of July, A.D. l'A)U. V. J. TIIUA[AS, [Seal.] I'nsiOiiit. THOS. TAYhOU, iiccrvinnj. Hamilton, 3rd July, IttOO. The copy of this By-law transmitted to the Provincial Secre- tary should have appended to it the words: " Certified under the Seal of the said Company to the Honourable the Provincial Secre- tary." W. J. THOMAS, I'rcsicl'.ut. [Seal ] THOS. TAYLOR, .S'ccrc/dri/. Aflidavit verifying the By-law may be adapted from No. 3<>. FORM NO. 38. PETITION FOU ORDKIMN-COUXCIL CHANGING NAME OF COMPANY. To His IIj. 2.")th July, A.I>. ItlOO FORM NO. 39. AFFIDAVIT VKUIFYIXi; SICNATrUKS To I'FTnTUX. 3(;. ruO\INtK OF < ).\TAU 111 the matter of the application under the Act ri'spectin;: the chan^dnj;' of the names of Incorjioraled Conipanies of The Ilimil- Couiity of Wentworth, ton Stove ('om|iany. Limited, a coinpni To Wit: about to carr.v on business at the City of Toronto, for an ( »rder-in-('th day of .Tnly, A.D. 1! J. Roe, A ComtiiisslotKr, *fr. A. F. LOBB. 32-i FORMS. [NoH.40.41. FORM NO. 40. AFFIDAVIT VEKIFYIXG PETITION FOR CHANGE OF NAME. Province of Ontario. (Juiuity of Wt'iitwurth, . To Wit: [ 111 tlic matter uf the iiotitiou of The Ilaiiiilton Stove Coniitany, Limited, for aii Older of His Honour the I>ienteiiant-Gov- enior in Council chaiijriiij: its I'orporate name to thit of " The Toronto Stove Company, Limited." I, ■\Villiaiii John Thomas, of the City of Hamilton, in the ('nunty of Weiitworth, I'resident of the Company, make oath and say: 1. That the allegations in the within petition contained are, to the liest of my knowledge and lielief, true in suhst;iiice and in fact. !Sv.i)rii before me at the City of Ham- ) ilton, in the County of Weiitworth, " W. J. THOMAS, this I'r.tli day of July, lUOO. ' JciHN liOK. .1 Comminxioni'i; etc. f "I- FORM NO. 41. EVIDENCE OF THE C0:MPANYS SOLVENCY. This should consist of a Balance Sheet, or of a Statement spoc- iaUy iirepared for the purpose, and hearing a date not more than six months from the date of the petition, setting out the Company"!* affairs in detail, siitlieient to satisfy the liieuteiiant-Governor in Council. .\s the Act under -which the change of name is to lie granted makes jirouf of the solvency of the applicants a siiw qua nou, the Provincial Secretary re(iuires that the evidence to he given on that head shall lie clear and convincing. Such evidence miy consLst of 111 The last Balance Sheet of the Comiiany if of sulHciently recenr dnte. it iieiiig sworn liy one cognizant of the tact that tiie financial position (if the Company has imt m;iterially altered since the Bal- ance Sheet was prepared: or (2i of a (Jeneral Statement of llie Company's affairs, specially imide liy conipt'tent authority, and set- ting forth the material facts. The Balance Sheet, or the Statement, as the case may lie. must lie veritie Balance . . . . " " "'^ ' "^ ] .08(1 88 .*;;;>! >,(j:»i* (»<) This is the statement marked "A" nu.nti,.„t.,l in ,he ,„«- Uavitof sworn hofure me tills day ..f A.I>. ll.oii. A Commissiuuer in II. C. J. FORM NO. 42. AFFIDAVIT VEHIFVIXC TiALAXCE SHEET. , I" tiu> matter of the applieation of '• Th.. '--^^-^^---^--■^-^o, I cv,mpan.v. Limited." ear,vi„. ..n Count.v of - I'Msiness 11, the ..f i,, the *'""''t>' "f for ii ehaufie of mine '-I'J ^^'t: I under th.- provisions of the Ontario C,,m- ' panics Act. ,.,, ]' , , •"■ """ •"■ i" the Count.v nf l-hartered Accc.untant. make oath and sa.v: 1. I have been auditor for the said .•umpan.v for several v.-u-. and am intimatel.v acpiainted with its financial position oonnfof H """""':• ;^"'™' """•'«■•» -A-' is a jus, and true ac- count ot the hnam.ial position of ,he said Companv. „p ,„ ,,i,. pn- «*'nt date, and the said Compan.v is perfectly solvent. Sworn before me at the ,,f in the Count v of I thi day of Jiuie, A.D. 11)00. j •'^''JiKitnn' of ,bi,<,nrnt. A Commissioner in II. c. J. "if -^n ; : ii {.r 326 FoHMs. [No. 43. FORM NO. 43. SURRENDER OF CHARTER. PETITION FOR ACCEPTANCE OF SURRENDER. To His lIoiKHir Tho LiiMitciiaiit-Governor uf tlit- Province of ()n- tiirio, ill Cuiincil: 'l"iic pctitidii of The IFU OF ("IIAKTHU. I'HOviNci: OF Ontakkp, j In llic iiiittcr of the lirr.'in aiiplifation County of -, for llic siirrcndiT of tlic cliartor of Tlie 'J'o Wit: Liniiti'd. I. if th of ill the t'onnly of Escniire, make oath and say 1. Tliat I am tiio SfiTdary in) of the said Company. 2. Tliat I hayc a l. IJlO (hiy of iiSitiiiittiiii- of lHi)imint.) I (Signed) .1 Jitxtirc (if the I'inrc. or it CnmmixHinnrr for t;reement. conveyed to the principal shareholder, he having re- leased the other sli:ii-elioi,!ers from their obligations on unpaid Statk.mio.nt of AiTAins of The Assets. Co.Ml'ANV, Ll.MlTEl) Estimated value nf land and ineniises situated on street in the city of do. do. I Outstanding Accounts- ..«<.-,.OriO (10 street li.'MW (Kt no (10 1 ;^r. M. W. INIcFayden "in 00 K. W. White J. W. Slater IJ. W. Day Liabilitiei 400 ■)() :T,T:!i.ar) There are no liibilties e.xt ept to Capital Stock. This statement must be verified by an aflidavit made by some one conversant with the eomjiany's affairs. ■ ■ I i ■■ l[ 1- l' 1 I it" ■I I > ' ■I' Iflli I ":■ 1' Im ::< " i 328 FOMMS. FORM NO. 46. [N(;s. 4n-4.s. NOTirE I\ T.OCAL NEWSrATEK OF ArriJCATION EOU ACCErTANCE OV SlUUENDEU OE CIIAUTEK. XOTICE. Uiulor the provisions of tin' Ontario (/oinininics Act. Tin- Coinpiiiiy, Liniitctl, iu-roliy yivcs pnlilic iiutici' that it will niaUo ai>i>licati(in to His Iloiiour the Lieutenant-* luvcrnor of On- tario in Council for the acceptance of the surreurler ot' its charter o!i and from the of UH* Dated at this 190 Secretary. FORM NO. 47. NOTICE GIVEN BY THE IIONOniAHLE THE PROVIN- CIAL SECHETAUY ON ACCEPTANCE OF SUU- ItENDEU OF A CIIAUTEK. Public notice is hereby Kiveu that, under the provisions of the Ontario Companies Act. His II(Uiour the Lieutenant-Oovenior In Council has, liy an Order dated the day of . A.O. I'.tO . been pleased to accept the surreinh-r of the Cliarter, by Lt'tters Patent, incorporating Tlie Limited, and to direct tl'.at the same bo cancelh'd, and that His Honour has been further pleased, by his said Order, to fix the first day of , l'.>(» . as the date upon and from whicli Tlie Company, Limited, shall bo lU'omed to be dissolved. J. U. STUATTON, I'rovincial Secri-lary. FORM NO. 48. KESOLTTTON AT'THOIHZING APPLICATION FOIl LICENSE UNDER (i3 Vic. Cap. 24. ONTARIO. At a );eneral meeting of the Company lu'ld at the of on the day of IHO . It was moved l)y seconded by , that the Comjiany lie and it is hereby authorized to ai)ply by petition to the Lieutenmt-CfOvernor or The Province of Ontario in Council for a license enabliii}? the Cfinpany to exercise the powers sruited by the Company's Letters Patent of incorporation, or so m.my of them .as may be approved of by the said Lieutenant-Governor in Council, in the Province of No. 49.] PETITION FOR LICKXSi:. M20 Ontarii), .intl l«> farry mi its Inisincss mid iictiniro 1 imls and iiit"T- csttJ in lands for the purposes <>t its business in tin- said rrovinct". 4'!.iried. Certilied a Inie coiiy ISeal.] >ttei-s that i-ther the ill he •:nse hI by and it •ernm* Iff thp letters led of lee of FORM NO. 49. riJTlTIUN von I.ICK.NSH ViHi. KXTIl.V I' IK ) VI. NCI. V. COKl'OU.VTIO.N. To His Honour the LieiitenaMt-(io\-ernor of the rrn\iiice of Ontario, in Conncii: The petition of Limited, Humbly sheweth: 1. That yonr petitioner was incorporated under the la) Com- li.niies .Vet of the Dominion of ("anadji, under the name of , Limited, liy Letters I'iilent (^t dated tli .t \W li. That the head otiiee of yonr petitioner is situated in the of ."{. Thar there is no limit, either st.ilutory oi- otherwise to tlio existence (M of your petitioner. 4. That your petitioner is a viii'd and subsistinir eorporition. ."». 'J'liat your petitioner may under the provisions of its ch;irt;M' carry on business in Ontario, ami may hold the lantis necessary for s(i carryinu on sucli business. <■>. That by its c hu'ter yenr petitioner is authorized to carry oil the following liusiness (here set out the objects in full). 7. Thter 1!4 (Ontario), autiiorizintr your petitioner to use, exercise, and enjoy, within tho Province of Ontario, iill or so miny of the powers, iirivileses and rijrhts as w«>re j^rantod to your petitioner by its said Charter (//) and may be approved by Your Honour in Council. S. That the authorized capital stock of your petitioner is the sum of ."f! divided into shiires of doll.ars eai'h. Of which .f has been subscrilied .-ind issued and fully paid up(b). !>. That your petitioner was. on the 1st day of -Tuly, .Ui)i), carry- ing on ii brancii, or l)ranches, of its business in the of in the rrovince of Ontario (?>). (a) Hero set out the liw or laws under which the Company was incorporated. {b) Or as the case may be. II f BB I I i! 1 i ■' 380 FOHMS. [Xo. 50. 10. TliMt till- chief iildfo uf Imsii CSS of vmir itctitimu r in tlic rniviiicc (if Oiitiii'id is in llic snid III 11. 'I'linl ynni- |ictili(incr lias I,.- llic imwcr of iilldrnc.v, duly c.\<'i'ntc(l under its eiininidii seal, lieretci anne.\((l, Mpiioinlcd "'' '•'•• <>!' , in tii(> I'roviiiee of Ontario, Ksiinire, to he y( 111- petilioner's .Attorney and Itciiresenlativc in Ontario in icconl- nnce with tiie said Act, iieini; C." V ail. L'4. 11'. Tliat the lierein apiilication for a L cense to eari'v on Inisi- noss in Ontario, was duly anthori/.ed ind aniiroved it a general iiicetinu(rt) of yonr petitioner held .at th( of til day of lOO , and that a true copy of the Ily-law lor rosoliitioii) in that liehilf is hereto attached. Yonr petitioner therefore prays that Your Ilonnnr will ho j)leased to issue a license to your petitioner autliorizin;,' your peli- tioiier to use. exercise and enjoy, within the Province of Ontario, all tor so many of) the powers, privileges and ri^'hts set forth in its said Charter as shall he approved of by yonr Iloiioiir. And your petitioner, as in duly hoiinsident. for si;:nature of Secretiirv, Dated at in tli(^ Coiiiitv of and I'rovii day of ice of 11(00. this I In tlie matter of the ipplication undt r 1 an Act respect int; the IJceiisinj; of Extra I'rovincial Corporations, for the jj;rant of I I'rovinc ^ License FORM NO, 50. AFFIDAVIT YEKIFYIXtJ PETITION FOP LICENSE (/)) Province of County of To Wit: '^ License to The Liniitod. I, , of the City of , in the Cwi:i: of att(>i:m;v fuom kxtija ritoviNJ'iAi. ColM'OKATKtN. KiKPW iill iiii'ii liy tlicsc iiri'sciiis, tliiil 'i'lic T.iiiiitcil, for cfiiiscs iuid coiisidcrat inns ii ilici'iiinln ninvinir, lias made, iKniii- iiatcd, coiistitulcd ami iiiiidinlcd, and liy llicsc iircsciils dues inaiic. noininntc, constilnlc and aiiimint n\' ihr nf Merchant ( Liinilcd, lo act as its said alinrncy aiul rcprcscn- fativc, anil to sue (ir lie sned. plead or lie iiniileaded in any ('oiirl in (tntariii. and, ;:enei'all.\'. on its lieliall' and wiiliin the I'rovince ol' Ontario, to accept servii <• of jirocess and to receive all iawl'iil no- tices, and for the purposes aforesaid to do iill acts, and to execnie all deeds, iiiii] oilier inst rnnients, relatiim to the matters within the scope of this Power of Atlormy: and the Act lieiin,' li.'t \'i<'. caii. l! 1 (Ontario); and the sjiid The I,iiniled, does hereliy coiitirm and a>,'reo to contirni all ami sinunl.ir what its said attornex ,ind representative shall lawfully do or canse to lie done in the pi'eiiiiscs liy virtne hereof. I'litil tluv Lawful notic(> of the appointment of niuillier and siili- so(pieiit attoiMiey and re|ireseiitative li.as lieeii .iriven to and accepted liy the I'ro\iii(ial Secreiary of (>utario, service of procos, or of papers iiid no|i(i's upon the said shall and will he .accepted by this saiil ('(unpany as suflicieiit service in the iiremises. In AN'itness tlureof ilie coiporau- seal of The l.imiled, has liecTl hereunto atlixed, and the hands i>\ its I'rcsident and Secretary liave hereunto lieen set this day of in the year of oiir Lord one thousand nine hundred AVitness. [Seal] for sitrnatnic of President. for siirnatiire of Secretary. The duo execution of this iijstrnment must he attestoil on oath I'y an independent witness. (f/) Or as the case may lio. f I; '.i'i'2 I'Olt.MS. [XnH.:)2, -).•{. 'lii FORM NO. 52. KXA.MI'LKS OK AiiHNDA FOl: IHIIKCTOUS" MKlOTINiiS.- 'I'li t'lt'i't ( 'li!iiriii:iii. Til iiii|>niiil Sfcrciiiry. To iipiu'dNi' doi;.'!! for seal. To ii|i|irov(" ii;:rr('iiii'iit for rt'iiliiiK olllii-s. To )i|i|ioiiit M < 'oiiiiiiitli'i' to liiiy liooks timl fiii'iiitiii'o. 'I'o )i|i|ioiiit ti Solicitor. 'I'o iippoliit Itinikci's, niiii Kivr ilirrctions as to oiiciiiii^ account mill siy;iiallll'i' of cliciillcs I licfcciii. To consiilcr ami approve prospectus. 'I'o ilraw clii'i|iics ill fa\or of To re III anil cnlllirill lllillllles nf last llleetilli.'. To iii'odiice liaiik iiook sliowiii).' creilit of !< I'd coiisitler ap|ilicatioiis for sliares. \k 'hi il i FORM NO. 53. ACJUKKMKNT ArPOINTINc; SHCKirrAUY OK MANACKU. 'IMlis agreement, Iliaile the .lay of , hetweell The Coiiipaiiy, I.iiiiiieil (iiei'ciiiafler callcil the Coinpauyi. of the one pai't. anil A. H.. of , of the other part. Whereas the lUrectors of the ("oiupaiiy ire eiiipowereil to appoint a secretary (or iiuniaK''!"* of the Coiiiiiany. either for a tixeil term or otherwise, and to fix anil ileterniine his reiiiiineralion. which may he liy way <•( salary or otherwise. Now it is hereliy ;i;rri'eil ;is follows: 1. The saiil B. shall he secretary (or maiiaj:er) of the C'ompnny for a term of years, to he coiiiiaiteil from the ihite hereof. 2. There shall be paiil hy the ("onipany to the said li.. as such soorotary (or niaiiap'ri as aforesaid, .-i salary at the rate of !)« per ainium. Such salary shall commence from the date hereof, and shall bo payable iniarti'l,\ .. y day of day of fla.v of id .lay of , the first of such quarterly pnymcir uLnle on th. day of 3. ■ aid R. sli.all, i.'ss prevented by Ill-health durinjj th(» said torii levoto »'ie whole of his time, attention, and abilities to the business of t' ■ Company, a..il shall obey the orders, from time to time, of the li.iard of Directors of tht> Company, and in all re- spects eonform to. and comply with, tl directions and rojiulations Kivon and made by them, and shill w.'il and faithfully serv(» the Company, and use his utninst endeavors to proiviote the interests thereof. No. r)4.J AliKliK.MKNI' l'o|{ AM AM iA.MA I l» »N. :{:{3 ■I. Tlu' Miiil It. sliiill. iliiiiiiK' lii> tiiiiiic Ml' ilu' Miiil cpIIIic, 111' niiii l< , iliciwiM' iirrni.Kfd lici v.fiu ilic Uuiiil i>\' I >in'(liir«. ni' mill, unices n the < 'iiiii|iini,v inn 1 Illc said U.. sllrll leave n( ah-elire .shall lie ^'railleii ill eiieli year as lullnws, iiaiiiel.v. ri'iiin tin aN III til ill lia.v (if etc., ele. 'I'lie a I'ln'e-aiil salary ol' llie saiil II. -liall eiiiiliiiiie mil willisiamliii).' such leave nl' aliseiice. .'. Kitlier i>( tile pfirties herein may ileiermim- this .•ivrreeineni liy K'iviii;,' III llie iiiher mil less than 'Hilar nniiilli'^' iintii' ill wriliiiK. ami niidii the exiiiralimi of llie iieiiml siieeilieil in sinh imliee, the said M. shall eease 111 he seerel I ry mr inaiia;.'en nl' the ( "iiiiiMaiiw III Witness, et( TOIIM NO. 54. A.'ns. as I'nl'.ows: — Tlnit the said Cnnipanies. The Mining.' < "ninpany, Limited, and The Mines ('nmp.any. I.,iniileil, slnill he united, ;iiiial- v:.'imated and eonsolid itod as one ("onipany under the iirnvisiuns nf th(> said the Ontario Companies Aet. That the name of the new anialnamated or eonsnlidated ("nin- pany shall he "The Consolidated Mining Comimiy, Limited." !*. t ! i. » %. !? ; ' 1. is f r 334 FORMS. [No. 54. That tho terms upon which tho said amalgamation and con- solidation shall take place shall l)o as follows, namely, the saiii Companies, The Mining Ccmipany, Limited, and The Mines Company, Limited, shall by good and sutticieut deeds, transfers, bills of sale and other documents, convey, transfer ;ind set over \into the said amalgamated and consolidated Com- pany when incorporated, all the as; cts and property of tho said two Companies, parties hereto, including Alining Locations, Water Power Locations, liusiuesses, Franchises, Buildings, ^lachiuery. Plant, Tools, Implements, Ore, Material, and all other rights and cash on hand, credits, and causes of action and claims and demmds and assets of any, every nature and kind whatsoever, of which the said Companies hereto are now and shall be at the time of such transfer possessed of or in any way entitled to. That the said amalgamated and consolidated Company shall T)y good and sufficient agreement assume and covenant to pay and satisfy all and every of tho liabilities, contracts and obligations of the said two Companies hereto respectively as the same may exist at the time of such transfer as aforesaid. That the said transfer of assets and covenant assuming liabilities, contracts and obligations shall be made, entered into and carried out immediately upon the incorporation of the said amalgamated and incorporated Company, such incorporation to be applied for im- mediately upon the api)roval of this agreement by tho shareholders of the said Companies hereto respectively as provided for by tho said tho Ontario Companies Act. That the number of Directors of the said amalgamated and con- solidat(>d Company shall be thirteen. That (hrrc set out the names of the proposed directors) shall be the first Directors of the said amalgamated and consolidated Com- pany, and shall hold uflUe until tho first annual meeting of the shareholders of said Company. That tho number of shares of the capital stock of the said amalgamated and consolidated Company shall bo Five Million shares. That the par value of such shares shall bo one dollar each. That tho capital stock of the said respective Companies hereto shall be converted into the shares of the capital stock of the said amalgamated and consolidated Company in the following manner, namely, tho shareholders of each of the Companies, parties hereto, shall surrender the shares now held by them and each of them, and tho certificates thereof, and to the shareholders of The Mining Company. Tiimited. shall bo allotted pro rata in lieu and substitution therefor one million fully paid up and non-assessablo shares of the capital stock of the said amalgamated and consoli- dated Company, so that each shareholder shall have as many snares in the new Company as in the said Mining Company, Limited, No. 5-i.] AGHI.;eMKNT roU AMAUiAMATIOX. 885 iiud ill )i(l(litii)ii thereto shall iilsn nMcive his ratcaljlc iir((i)oi-tinii of the siiiiio iiiiinher of shares of the new Cuiniiaiiy as is equal to the iminiter of uiiissueil treasury shares in the said Mining' C'niiip.i'iy, limited, at the time of transfer to the new Coiiiiiaiiy as hereinhefure provided, and to tho shareholders of the Mines Company, Limited, shall he allotted pro rata in lieu and sulistitution of llie Slid surrendered shares, or the ri^lit to the Issue of the same two million fully paid up and non-assessahle shares of the eapital stock of the said anial;j:amated and eonsolidateil Company, but none of the s:iid slnires shall lie allotted for a peri,ij(lO shari's to 100,000 shares to 100,000 shares to 100,000 shares to 100.000 shares to 100,000 shares to 100,000 shares {o 100.000 shares to lOO.OOlt shares to at or for the iirice or sum of fifteen cents per share, makin.ir ie ail a total of one liuiidrd and fifty thousand dollars (.SI.'O.IKHH wiieii paid, <>( which sum not less than ten iiei* c<'ntuni of the total price shall be jiaid in cash by each of the said parties it th(> time oi issui> of said shares, and the said partii's resiieciively shall ;;ive \o the said amaljrimated and c(Misolidated Comiiiiny their resjiective undertakini:-- for the due p.'iyment within a iierind of sixty days from the date of such issue of the remainiii,i: ninety per centum of the price of said shares so to be; allotteil and issued to them respectively: and to the extent of 100.000 slnires. beini: part of tho one million shares last licreiub(>f(U'e referred to so to tie ;illotted. such of the shareholders of The Mining Coinp:iiiy, Limited. as so desire shall be entitled to be allotted a proper in-oportion thereof, based upon iind accordiii!; to their present Iioldin.i.'s. upon the same terms ind conditions Jis to paynuMit upon tliiMr siirnifyinn in writing to the Secretary of The Miniiij.' Company, Tiimited. their d(>sire to have such shares .Mllotted to them, such sijiuiticalion to be delivered to the said Secretary within ten days from the approval of this au'rei-ment by the shareholders of the said Mininj; Coinpniy. Limited, and in this respect time shall bo of the essence. That (uie million shares of the said ciiiital stock of tho said iimalgamated and consolidated Company shall remain in the Trei- sury undisposed of for the future re(piirenieiits of said Company. That immediately upon the incorporation of the said imal^a- niated and eousolidated Company. Esriuire, who was the --,... rr-|-f|i-^innmm) 836 FORMS. [No. 55. •'U Secrctiiry of llio iliniii):? ('oniitnn.v. Limited, shall imiiu'tliatc'ly convciio a inoctiiif; of I lie said first Directors of si id ainaljiainated and consolidated (Viiiiiiaiiy, of which meeting at least live days notice in writing shall lie given addressed and mailed to said first directors, and at such meeting the said Directors shall duly elect and appoint officers for the future management and control ami working of the affairs of the said amalgamated and consolidated Company, and transact su( h other business as they may think proper and necessary. Out of the said one hundred and fifty thousand dollars so to he paid for the si id one million slnues so to lie allotted as aforesaid, the directors shall jiay and discharge all and every of the liabilities and obligations of the said Coiniianies hereto respectively. I'pon the completion of the incorporation of the said new amalgamated Company and the triinsfer to it of the assets and proiK'rties, etc., of the said two Companies, parti(>s hereto, there- upon the said two Cfjinpanies, namely, The Mining Company, Limited, and The Mines Comiiany, Limited, shall for- ever end and cease to e.xist for any and every and all pnritoses. In Witness whereof the parties liereto have hereunto set their hands and si'als. Signed, sealed, and delivered In the presence of FORM NO. 55. PETITION FOR AMALGA:SIATI0N OF COMPANIES. To His Honour the Lieutenant-Governor of the I'rovince of On- tario, in Council. The Joint IVtitiou of The ^Mining Company, Limited, (Xo I'er.sonnl Liability), and The Mining Company, Limited (Xo Personal Liability), Humbly Showeth: 1. That The Alining Company, Limited (Xo Personal Liability), is a duly incoriiorated Company having been incor- porated by Letters Patent under the (Jreat Seal, bearing date the day of 1J*0 , in pursuance of tin* iirovisions of th(> Ontario Companies Act and of The Ontario Mining Companies Incoriioration Act. 2. That The Mining Company, Limited (Xo Personal Liability), is a duly incorporated (.'omi)any. having been incorpo- rated by Letters I'atent under the (Jreat Seal, and bearing date the «0. 00. PETITION F(>|{ AMAI.GAMATIOX. 337 (lay of . lSi»7. ill inirsnaiicc nf ilir Ontario ('oiii|iaiiif^ Ad iiiid Tiic (Milario Miiiiii;: Coiiipaiiics Iiiioriioratioii Act. I!. That the Hoards nf Kircctors of your joint iictitioiicrs uro duly and lawfiiiiy coiistitiitcd. iiaviii;: roj^ard to the iirovisiinis of tlir statute ill tliat Ipchalf. 4. Tiiat, iMirsiiaiit to llic iirovisiuiis of tiic Ontario Coiniiaiiics Act. your iK'titi. That your iieiitioners are (h-sirous of uhtaiiiint: hy lA'tters rateiit under tile (ii'eat Seal, a Charter under the provisions of the Ontario Companies Act and T'lie Ontario .Miniim Companies Tnc(U'poration Act amalLramatin;; and ciuisolidatiiiK' and constitutini; your iietiti(Miers and sm h others as may liecoine sharelndders in llio Company thereby created a hody corporate and jiiditic under the name of The Consolidated Mining,' Company, Limited, or such otlier name as shall ;ippear to yoiii- Honour to ho proper in llio premises. ti. That the oliject for which incorpcU'atioii is soiiiilit liy yonr petilioncrs is to carry mi a ireiieral miniiin', inillin;::, reduction and devolonnient husiness. 7. That the iinderl ikini;- <>( the Comi»aiiy will he carried on Mithiii the rrovinci' of Ontario, and that its post otfici' will bo T'. That the amount of the Capital Stock of the Comiiany will b( Five .Million l>irectors of the Comiiany. Yonr .ioint iietitioners therefore pray that yonr Iloiioiir may be pleased liy T-etters Patent under the (Jreal Seal, to arrant a Charter tfi your .joint [letitioners anialy;ani iliiiK yoiir joint petitioners and oonstitutinjr thciii and such others !is may become shareholders in tho Coinpany llu'reby created, a body corporate and politic for the due ciirryinu out of the undertaking aforesiid. W.S.D.M. — 22 Ljatcrsyaajpaw aii ■' ^' : ■ i i 1 ; ■- 1 . 1 ! b if^ 11 'I I fh 338 FORMS. [Xos. 56,57. And your petitioners, ns in tlnty lioniid, will ever pray. The Co., Limited, [Seal.] i)er A. B. C, l»resident. per 1). E. F., Secretary. Tiic Co., Limited. [Seal.] per (}. IL L, President, per K. L. M., Secretary. Witness to the signatures of the President and Secretary of the Co., Limited. Witness to the signatures of the Pi'esident and Secretary of the Co., Limited. Dated at Turuutu this day of June. 1t»0 . FORM NO. 56. ASSIGNMENT OF SHAKES TO HUOKEIt AS COLLATERAL SECUKITY FOR ADVANCE. In consideration of making an advance for of dollars, repayable in two months (or on call, or as the case may bei, with interest ;it per cent, per annum, have assigned to them as collateral security for the due payment of said advance and agree to keep up a cash margin thereon of not less than Should the above advance not be duly paid with interest at maturity, or the margin of security not kept at per cent, above the value quoted in the ordinary newspaper reports are hereby authorized to sell or dispose of said security, without notice, and to apply proceeds in liquidation of s:iid advance. The whole without prejudice to the ordinary legal remedies thereon. Toronto 190 . FORM NO. 57. AUDITORS' CERTIFICATE. To the President, Directors and Shareholders of The Toronto Stove Company. Limited. Gi'ntlemen,— We, the undersigned, having examined the s«^curities and vouchers, and audited the books of the Company, certify that we have found them correct, and that the annexed balance sheet is a correct statement of the Company's affairs for the year ending the 30th of June. 1900. JOSEPH BLAKELEY, W. A. DOUGLAS, B.A.. Auditors. Toronto, 13th July, 1900. No. 58.] HALANCE SHEKT, GENEKAL FOKM. 339 at ove roViy autl ?tove rities thai jihoct iding 00 w d o < as a o <3 3i c o v. C 2 ^T.*- 5 "5 2 S.■~ "> -^ 'c 5 - * ■- - i ? t ~ !; I "^ --1? i^ ^ I ^ ^ ! ? ! ; ! "^-'^ .= !5 ■- > j«; A _-^ £•- 1. ^ >» Kg; < > Ci3 X H CO I II .•J-J H H I— I 1—4 13 G H I. 1 • ■**» ^ ~ ^ •; ^ y. i;. ^ i t 1 -•-5 s s -« ^z "A ;£ c .; -a ■i ?: \i\~ ^. O ^-?- 5^?C ■^ n* c 5 ~ -^ -S t il -5 "^ >". i ■>>«i~; i O i V ~ S * — . -^^ -^ 6 I C- H >5 -; &;^ I ■ *"!' T I! 340 FORMS. FORM NO. 59. [Xos. 59, 60. BALLOT FOR KLErTION OF DIUEC'TOnS. At the first (or aniitiall nioi'tiiit.' al and of in the County of of in the County of as sureties, are of in the County of as sureties, nri- held and tirndy hound unto The Company, a Company duly incorporated under tlie laws of the Province of , in the penal sum of . to he paid to the saiil Ccunpany or to its succes-^ors or assi.inis. for which piiynu'Ut well ami truly to he made, we herehy jointly and severally hind ourselves tnd each of our heirs. execut(U-s and administrators, firmly hy these presents. St'aled with seal iind dated this day of A.D. 190 . A\'hereas the ahovo nameil Company luis ajireed to take tlu- ahove houndeu (principal) into its employ as cashier, upon the said (piincipn } and the nhove hcumden (.turftks) enterinjj; into a hond in the ahove mentioned sum of ihillars. with sucli conditions as is here- tinder written, for the faithfid dischirjre hy the said (principal) of his duties as cjishier: Xo\,-. the condition of the ahove written hond is such that, if the said ipriiu-ipuJ) shall faithfully discliarjre his duties as sncn cashier as aforesaid, or if the siid ipriiiriptil'. and [xiiritiix) or either of them, their ov either of their heirs, executors or administrators, shall at ill times hereafter keei) indennntied tho said Comiiany and its assijirns ajrainst all losses, costs damages ami 1^ Nos. 61,62.] liV-I.AWS. 341 cxiicnsfs. wliicli tlit> siiiil fipriMiijii ioM or its nssiLriis niiy pay, sus- t;iiii, cir lit' lUit iiiit>( its tiildii>r tlu' said ii>riiiriiKilt into its cinploy, iir iiy fcasi.n i,f any act, fiiiliczzlt'iiiciit. misiiiaiiani'inciit. iit';.'li'(t, iir (It'fatiit (if III' I'y the saiil iiniiiciimh wliilsi in the employ of tilt' saiil Coiiiiiaiiy. or otiiorwisf. tlifii, in fitlii'i' of tlif said ca-fs. tilt' aliovf wfiltcii lioiid shall ln' vi'iil: oihorwiso tin' same shall ri'inaiii in full fort'i'. In M'itiii'ss whci'cof the saiil paiiifs havf hcrt'uiilo set their liainls the day and year alio\e wfiiten. Siirned, sealed, anil delivered in the presence of. FORM NO. 61. TUKASriJKIfS lU)Xr>. Know all Men hy 'IMiese I'resi'nts, that III ;is s'lretv, ;iri III .MS held and tlrndy ( 'iiiniuiny, ;i eoi'ii iratio!i of the I'l'ovince i>f ]iriiicipal, aid liound unto the Ontjirio, its successors !ind ■assigns, in the sum of dollars i.'< ), lawful nntney of Canada, to he paid to such corporation, its succrs- irs and nssi;.'ns, f or will' ii pax nielli, well .and truly to he inadi we hind ourselves, oiir executors lud ailuiinisirato ioiutly ;ind severallv. tiianlv liv t lesc preseht- In Wit?iess whereof, A\'e h.ave liereiinto set our hands and s, ■''< tlii.- ilay of T.iii The condition of the almve ohliLijitioii is that. "Whereas, the said h IS lieeii .•ippointed Trt asurer ol t he nliove named ("oiiiimny. .and is almuf to eisier upon the duties of his • itHce as such 'J'reasurer. Now, therefore, if he sliall in all I'espects fully and faithfully discharge his duties as such Treasurer, so lonjr as he shall Imld the siiid otlice tir continue therein during- the term for which he is now appointeil, jiiid also, if, in case of his death. resiLrnaiion or removal from olhce from any cause, all the Imoks, jiapers. xoiichers, muney or othi>r iiroperiy of \\h,ite\er kind in his jiossessidu hrlonir- ing to the Compiny. shall he forthwith restored to the ( 'oiniiany. then this oliligatiou is t o lie volil, o therwise to lie in full force and virtut Signoil. sealed and delivered in the presence of ri->l FORM NO. 62. BY-LAV.S. As it is impossilile to frame a set of iiyd.aws that will he proper and suflicient for all kinds of comp.-inies organized under the laws of r ! 'i ■i ['; :U'i F(JUMS. [No. 62. 'S-'' •IJ i.i\ i i i ; ; ■ 1 i j i difftMont Provinoos, the foIIowiiiK in'f Kivcn ns txiiiiplos of by liiws ii> KfiK'riil, which (■umiiiinics cjiii nltfi' to suit tlicir respective ( ir- ciinistiiiices and re(|iiireiiieiits. Tlie lirst task of a |ierson iilioiit to tliiiw n|i a set of l).v-hi\vs should lie to examine cirefull.v the charter of the company and the Statutes under which it is (u-Kaiuzed. After he has done that, he may derive sonu> assistance from an examina- tion of the following,' talde. Hy-laws must have a preamble and iiii enacting cliuse ns given herewith. Whereas, the Directors of The Hamilton Stove Company, Limited, deem it expedient that certain liy-laws for reKulatin^ the affairs of the company should be made. Now therefore bo it enacted, and it is liereby enacted. MEETINGS. 1. That the annual meeting.' of tlie Shareholders shall be held at the oflice of the Compiiny in the City of , at eleven a.m., nn the fourth "Wednesday in the mimth of January, in each year, to receive the report of the Directors for the past year, to elect Direc- tors for the ensuing ye:ir, and for all other jrenera! purposes relating to the nianafiement of the Ciuupany's alTairs. 2. That a general meeting of the Shareholders may be called at any time by the Directors whenevt'r they may deem the same neces- sary or idvisable for any purposes not contrary to law, or the Let- ters Patent of the Company, and it is incumbent on the President to call a special meeting of the Shareholders whenever required so to do in writing by the liolders of not less than one-tenth of the subscribed capital stock of the Company, for the transaction of any business specified in such written requisition and notice calling the meeting. ;>. That notice of the time and place for holding the annual or a general meeting of the Company shall be given to each shareholder of record appearing on the books of th(> Company, at le:ist ten days prevously thereto in the Hamilton Tinus ia), and also by mailing the same .as a registered letter {b) duly addressed to eacli Shareholder at least ti'U (lays previous to siich meeting. 4. That meetings of the FMroctors shall bo held as often as the business of the Company may require, and sli:ill be called by the President. .">. That at general meetings of the Company, every Shareholder shall be entitled to as many votes as he owns shares in the Com- pany, and may vote by proxy duly appointed in writing. («) Or in some newspaper published at or near, ns may be, to the oflioe or chief place of business of the Company, or by publishing the same in the Ontario Gazette. il)) The publishing of the notice of meeting in the Gazette, or the mailing the same as a registered letter, does not apply to Ontario companies having a capital not exceeding three thousand dollars. Ift^ No. 62. J HY-LAWS. 343 annual meeting;. f>. That tlio Trosidont shall, if prosoiit. iirosido at all inootinns of tlio Company. \U'^ shall call inootinjjs of tlio I'loai'd of I>iroctors and Sharoholdors when iiocossary, and shall idviso with and roiidcr siK h assistance to the nianafrer as may hi' in his power. In his alisonco the Vice-rrosident shall have and exorcisi' all the rights and powers of the rresidont. A Director may at any time summon a nieetint' of Directors. 10. That questions arising at any mooting of Directors shall ho decided hy a majority of votes. In case of an eipuility of votes, the Chairman, in addition to his original vote, shall hive a casting Vuto. 11. That the Soorotary shall keep a record of the prot ocdiiii;s at nil meetings of the Board and of the Shareholders of the Company. and shill he the custodian •>( the seal of the Conip,in\'. an I of all hooks, itaners. records, etc.. holonging to the Coinpanx'. which ho shall doliviM'. when authorized so to do hy a resolution of the I'.oanl, to such person, or persons, as may he named in the resolution. 12. Thit any Shareholder not in arrears for payments for calls upon his stock may ho electe(l a Director. 1.">. That the Diro(t(U-s sluill hold otlico for one year and until their successors shall he elocteil. 14. That in case of the doiitli of a Director, or his lioing unalilo to act as such, or liis coasinu to he ii Sharelioldor, tlu^ vacancy tlicrchy created may he lillo(l for the unexpired iHU-tion of the term hy the I'.oard from among the quilitied Shareholders of the Company. 1."t. That directors, as sin h. shall not receive any stated salary for their services, hut hy resolution of the I'.oard imiy he allowed dollars for attendance it e.-uli regular or special meeting of the Roard. if present at roll-call ami until adjournment, unless excused. It'i. That the Company shall have a corporate seal of such design as the Iioard may dotorniino, which seal shall wluiiever used ho authenticated hy the signitures of the President and Secretary. 17. That the Board shall from time to time fix the salary or wages to he paid ollicers ot the Coiiiiiany. r I ;i44 FOKM.S. STOCK. [No. 02. IS. Tliiit ciills iipDii siiliscrilicd stock sin II he iiiadi' I'miii timo to tliiu' IIS I lie Hujii'd iiiiiy ilftfi'inim' iid pel' (('lit. (if llic snliscrilicd sluck, iiiid llicrc siiall lie jiii llitcrviil ill" at least thirty days lictwccii rails. l!l. That it shall not lie ciiiiiinilsoiy mi |hi' liM.Trd ti> rcccivo full Iiayinciit of any share <>r shares until the same shall have lieeii demanded hy call. -i). 'I'hat the Hoard shall Imve power to siimmirily t'orl'eit sliai'es and the money paid thefeoii. upon which any call shall h;i\e fe- niained un|iaid for sI.k montlis after it shall lie due ami payable, ami such I'orl'eited stock shiill thereupon liecome the property of the Company, and m.-iy lie disiioscd of in such manner as the Company in general nu-etin^' thini; lit. 21. That receipts for payment of cills shall lie issued from ti:ne to time as such i»ayments are made, but stock certitieates shall only bi" issued when shares ire fully paid up, and both receipt .•iiid certi- licale shall be authenticated by the signatures of the I'residi at and Secretiiry, and seale(l with the Company's seal. •_'2. That Shareholders may, with the consent of the Board, but not otherwise, transfer their sliares, and such transfers shiill be recorded in a book provided for the purpose, tind sijriied by the shareholder and his trjinsferee and duly witnessed, but no person shall be allowed to hold or own stock in the Company without the consent of the Hoard ta). ■ i:- accui;nts. 12.">. Th.it the I»irect(U's shall cause true accounts to bo kei)t, — Of th(> stock-in-trade of the Company. Of the sums of money reieived and ex|iendcd by the Compiny, and the matter in respect of which such recei|it and e.xpendiliire takes iilace; and Of the credits and liabilities of the Ccmipany. 'J4. Th.it the books shall be ke|it at the head otlice of the com- pan.v. .•ind shill be open to the inspection of the members during the hours of business (b). ((() This rule may bo desirable under certain circumstances, but as !i >rent>ral thinu: the owner of fully paid-up shart-s e.-in transfer them at will. The cimsent of the Hoard must be h:ul when trans- ferring shiires that are not fully paid-up. and the new holder should be as respiuisible a iiers(ai .-is the old. ih) Kestrictions as to the time •uid manner of insiiectin^ th" books may, subject to the |)rovisions of the Statutes, be imposed by the Company in j:ener;il meeting, or it may, in certain cases, be well to strike this by-law out altogether. No. (i-2. II V- LAWS. ;ur) 'J.". 'I'liiit "life nl It'dsl ill cMT.v .M'.ir I lie nircctors sliall Iny lic- fiii'c tli<> ( 'iiiii|iiiii.v ill iri'iit'i'iil iiii'i'liii;: ji ^latcnu'ii! nf iIh' iiii'niiii' nmi «'.\IifII(iillin' I'nr liic |i,i>-l veil-. A l.alllirr silcct sllilli lie lllilili' nut ill fvcry yt'iir, nr ui'tciicr, if doirjililc, iml Iniij Ipcl'iiir ilic ('uiii- imny in Kdii'i'til ini'ciiiiu', iiml siu li IimImiiii' >liri'i sIimI! r<>iittiiii a siiiiiiiiary ui' tlii> |iri>|ii'rty iml lialiiliiii's ni' tlic CiniiiiMiiy an.iiigcil miller tile iicccssar.v ln'aiiiiii;>. ll^NK ACi'irNT. 'Jii. That a liaiik .ictniiiii sliall lir lopi in tlir nam,' of llir ('mii' Iiaiiy at a liaiik to lir sclcclcil Ky tln' Itnarii. <_'iiKi.'ri:s I'cii; .miim:v. ■JT. That all chciiiics, ilralis nr nriliis fur the |ia>niciii nf jiioiicy shall 111' siy:nrii liy ilic Trra^nriT ami i iMiiilcr.-ium'il liv -.'iili'i- tho rri'si.k'iit nr N'icc-rrcsiiiciii. No cht'cim's shall In- siyin'il hv' Imih tli" Treasurer ainl President, or the ^■iee-l'resillellt. in hianli. Si il.lcITiiH. L',S. That Charles Hrnwii. of Hamiltun, Esq., -^Iiall he the Solici- tor of the ('om|iany, Imt he may ill ai'y time he lemoveil iiy a reso- lution of the ('oiiiiiaiiy. pass.il in ueiieriil ineelin;;-. All'ITults. ■J!l. That one or more Ainlitoi's shall he aiipoiiited annually hy the Shareholders at the annual ireiierjil n linu'. whose duty it shall ht' to examine and audit all huoks. \o'u h 'rs .■ind aicnunis of the Comitany and all dorumeiits haviiii;' reference to the hiisiiiess thi'renf. They shall he siipiilied with a list of all hooks kept hy the ('oiiipany iind with a copy of the ha lance sheet ;ind ahstrict of the i flairs thereof, .•iiid it shall he their duty to exainiiie tlie siime ami m.ake ;i rep"i't thereon to the I'oard .is soon ifter the close of the tin.imial year as possihle. toueiher wiili such siiyi-'esiioiis or recomnieiidal ions its they may think tit. 'I'heir remuneration shall he >> each, per {•.luiiim. (•IIANin.NT, I!V-I,A\VS. .'{0. That the I^oird ma,\' from time to linie repcil. .•imcnci and re-enact these hy-la\vs. hut such ih;ini:e. unless in the meantime continued at a Koiieral ineetiuL' duly <-alled for the purpose, shall only have force until the next annual nieeliny- of the ( 'oniptiny. and if not coiilirined thereat, shill fnuii that time only cease to have any force. 846 FOHMS. [NoH. an, 64. FORM NO. G3. liV-r-AW rNKKFt ONTAIMO MI.\I.\(} CO.MI'A NIKS' INCOlt- rOi:ATI().\ ACT. K1XI.\(J A.M> 1 HOCI.AUINC UATK Ol' DISCO! NT. Hy-law N(i. of The Ciiiii|i,iii.v, Liiiiitcil (No iktsmiihI liiiliilit.vi, lixiiiK 1111(1 ilfcliiriiiK lli<' rate of (liscoiint at wliitli slian-H aru to lit' sold. WhtTciiH The Limited (No iicisonal liiiMlit.v; dfciii it ad- vnntaKfous and proixT to stdl the miissiicd sliarc« of the Comimiiy Jil a discodiil, as hcn-iiiarifr in'ovidfd. Now, llicrct'orc, Tlio Limited, enarts as follows: Tliat tile iiiiissiied shares of the Coiii|mii,v shall lie sold at a dis- count oil their |iir value of seventy-live per cent., and the prieo per share aeeordinyly shall lie twenty-live cents instead of one dol- lar. I'assed liy the said Company tliis iL'tli day of Octulier. A.I). lUUO. 1' resident. [Seal.] Sivvetary. This By-law must he verilied liy an allldavit, wliich may lie adapted from Fornv 24, and a copy of the Hy-law mnst ho trans- mitted to the I'rovincial Secretary within '24 hours after it was sanltioned. .Vs a matter of precaution, the Shareholder to wlnau Mich stock is issued should aj.'ree to lie subject to the terms of this IJy-iaw. .4 ,. FORM NO. 64. AXOTHEU BY-LAW TM>KU ONTAUIO MlNINd Ct).MrAX- lES' IXCOUrOUATH>N ACT, FIXINtl KATE OE DIS- COUNT AND LLMITIM; TUANSEEK of SHAKES. By-law No authorizing the sale of one hundred :ind fifty thousand shares of the ciipital stock of The Limited (No per- ."^oiiJil lialiilityl, at a discount of seventy-live per cent., and limiting the transfer of the same. Whereas The Limited CSo personal liability) deem it ad- vantageous and prjper to issue one liunilreil and lifty thousand shares of the capital stock of the said Company it a discount of seventy-five per cent., and to limit the transfer ot the «ame until the 1st day of Xovemlier, lilOL No. 65.] CONStiMD.VIloN AND MKIUiKK :U7 Now, llicrcrcirc, llic said Tin- I.iiiiitccl, ciiMi'ts i\h follnvvs: 'I'liiM IiiiikIi'i'iI mill lil'ly iliniisniiil nIimi'i's fully |Mi a|i|)li<'iiils ilii'.fror. or siuli of lln'iii as tin* Niiiil ]>ii'i>rtors may. iiy ri'sohitioii from tinn' to tiiiii>, ili'ti-riiiiin'. Siicli sliari's at twt'iity-tivi' rriits cinli sliall In' sold upon iln' rx- prt'ss roiiilitioii that tlic saiiif sluill lir iioii-traiisfi>ral>li> until tho first (lay of Novcmlicr. I'.tol. witlioiit tin- prt'vions roiivcnt of liic Itircctors, aiiii tliit tiii> iisiiiil stoiU crrtitiralis shall not lii> issiii'd tlirri'for until the sanl lirsi day of Novriiiiicr. I'.'Ol. in order to provide that the said shares so sold jit. twenty-live leiits each may not interfere with sniiseiiiieiif issues of stock at liiuher jiriees when (leeiiu'd ndvlsalilc. Tassed liy the said Company this IJih day of Noveinher. A.D. ISJOO, /'( ( S/'.'l ///. [Seal. J .S'(C/' llllll. This Hy-liw must be veritied hy an alliilavit. wliiili may lie adaiited from Form \o. Ii4. and a copy of the liy-law must In? transmitted to the I'roviiieial Seeretary within 24 hours after it was sanctioned. As a mattt-r of precaution, the Shareholder to whom such stock is issiu-d should agrei' to lie sniijeci to tin- terms of this Hy-liw. FORM NO. 65. ("ONSOI.IPATION AND MKUtJER. .Vo form ((in he (jircn irhich icill aiiMicd- in croii citM'. 'J'lii.t farni 111(11/ he modified to meet the ixiitieiilar re(iiiiremiiits of each eotisolidation. This Indenture made this day of , liiO Hetween the owner of the mills at of the First I'ait; The Mill Company of the Second Fart: owners of the Mills at of the Third Fart; The ^lills Company, of the Fo.irtli Fart ; owner of the Mills at of the Fifth Fart: The Mills Company, a company to be incorporated, of the Sixth Fart; Esquire. Trustee of the Seventh F\rt. And of the City of \ \: ; . ,- iiiBrnrYnni .*U8 FORMS. [No. 05. l!i f I 1 h Witnossolh: Tlic s:ii(l sf\criil iiMil rt'SiuMiivc parties iiiid < 'oinidiiiics imiduilly :iiiil rcspcciivcly ( '< i\i:.\a.\t. I'ud.Mi.'^K a.nh .\(iHi:i:. witli carli diIkt iiiid cacli will) till' DtliiT as I'ullows: — (li 'I'lial uiiiinrn of iii)i)lic(inlx fur chdrtrt). or oilier pri'sons to lie appoiiiteil. shall inocnre Letters I'ateiit to incorpoiate a ("oiii- paiiy under tlie Ontario Coniiianies Act. nnder liie name of Limited, or other apprc ve-. j\ame, with power to aciiiiire hy pin- ch ise: — (li The .Mills, (-') The .Mills, Ctl The .Mills, (4l Thr Mills. (oi Till' .Mills. and the Inisiness carried on by ijicni n-specl i vely. ami the .miod-will lliereof, and the i,'eneral deseripi ion " .Mills," includes the mills, maeliiner.w power, privileycs, dwellinir houses and :ill real and per- son.-il properly and pl;iiil used in connect ion with tlie l.iisiiiess of the mills. .\nil also with power to icipiire iiy |iurch;ise. lease or other title other Mills .-ind .Mill projierties and sites for .Mills, .'iiid .Mill proi)erti<'s, and to issue paid-up shares of the <"a|iit;il Stick in pa,\iiient of the price thereof. .\nd to construct, e(|uip and opcr.Mic .Mills .-ind ciirry on the ;:eneral tride and Inisiness of niaiiu- I'aclnre and sah' id' .unods with all statutory and usual iiowovs incidental thereto. (■_'( 'I'he luice of the said .Mills and iiremises to he .-ictpiiri'd \<\ inirchase as ifoiesaiil shall lie:^ The .Mills jiiid premises, $ The Mills and iireniises, iji The .Mills and premises, $ The Mills and lu'eiiiises, $ Tho Mills and lU'emises, $ l.'il TIi(> authorized capital of ilie ('oiniiaiiy to he iiicorporateil shall lie $ , divided into shares of $ each, with ii IL.-id ()llil' Ilif il the siilil .Mills licl'dl'c lllc I.cllcrs I'mIciiI r ir nicdrp'ir.-il mil nl" llu IH'W <'(iin|iiiii.v iirc Miiplicd tdr, .iinl ilic Stuck Itmik (if lllc <"(Piii|iiiiiy ^llilll tiK'll I IC CldSfll II 11(1 sliall iKil 1 |iciii'(| iililil il U>'-l.'i\\' li:is Im'CII imssrd liy tln' I'.nMnl |i; illcriMSr ihc (',-||iil:ll Sluc-k. in clKllilt' tile ( "iiiii|p.iiiy |() ii<'i|iiirr (iihiT Mill inniirrl ics, niiil has licni duly siiiH'liniicd liy lllc sliarclinldcrs ai:d ( oiitiriiiccl liy Siiii|ilciiiciiiary Letters r.-iteiit. (li Tlic said several and respeei i\-e parlies and ( 'ninpanies wjH fni'llisli Ueirislrai's" ihstrarts ul' title ami title cleeils ami eseellle ds III" tl Mills Mill piiiperiies and preii uses III llpiill trust In eXeellte a :iialiie III trnsleei, iil the eily nf deed to the ('nliipaiiy to lie iiienrpiifaled. alter il has lieeii iliilv ni'van- izi'd, and the said pai'lies and <'iiinpanies niuinally iiid lesper- tively liiideftake mid iiirree with • aeh nilier and with ilie trustee, and with the ('niiipaiiy In lie iiieiirpnraied. In make uiii iml shew {^iiiid titles and pay and diseliar^e all ene'iniliraiiees ilierenn. (."•I rpciii the iiruanix.aliiiii nf the ( ' iiiipan.\-. tlie liaisiee excel lie a deed nf the Silid Mill Mill iiriipci'tie< Mill premise III the ( "iiinpaiiv, and assi;^ii lllc -aiil a;^recnient im- iiilc Mill eiill •llffeiltly ihci'cwith and in enlisideral imi ihereiif. the (' |iaiiy wi II issue I'lir each iiwiier the shares in lie siiliseiilied fur iffiircsaid is paidnip shares, and the dcli\cr\' nf the sinek ecriilieale shall I H> il St ttleiuelil fur the shales In lie paid li.v the traiisl' er nl the pmperties as nfnresaid. Mil .Neitllcf the cxeelllinii linr the IcirisI ra t inn nf d ceiW shall III 111 aeeciitame <<{' title, and the time fnr |iiynicii' nf illellnlll|■am•e^^ lie deferred, and a prnpni'timi ti\' the paid-up stnck III any I may held liuid; li,\- the Ciimpany Un- a reasniiatile time, iiniil any defect (^f title (if aii,\ I shill he rennived nr cnmpcnsalcl fnr nr cithcrwise .'irraiigeil. (7l Ami it is MUTr.M.i.Y ,\NJi hksi'K('ti\m:i.y iii;<'i,Aiti;ii ami iRKKii ih.t I he Ciiinpaiiy in 'le im ;c the liailK if the ( 'i illipailies, and n •nrpnrated shall lie entitled tl f the mills ind trade naiiic; fiif the liiisiiiess nf ihc new ('nmpaii,\. and ihat the ;:nnds in the lirnci if iiianiifaetnre w Inn the Cniupany is nrtrani/ed. ami tl raw materials and supplies nii hand iml iiilcnded fnr the ii-c nf the reslieclive mills, will lielniii: In ihe new ("niiipan.x- ai the aellial cnst Ihcrenf. with interest and cliar,i;('s payaMc in ash In cadi Cniii- paiiy and party, and the new ('mnpaiiy will excciiie cxisiinir nrdcrs and repeal nrdcrs fnr the l''all ni I'-KIO. .at the prices al whieli ttiey are taken, but fnr the piir|invc nf prnper ad.jiisi iiieiit nf the price nf raw uiiiterials and supplies, the Kxceiitive Cnmniitlcc nf the ('(iiiipaiiy siiiill have pnwer in hx the viliie nf ,iny surplus (if aiiyi nf raw materials and supplies which may he cnntriliulcd liy any (if the said mills nver its relative prnpniiimi, liaviny: fc;;ard tn the prices at wlucli the mills are taken nver liy the Coiiipiuy. '■ !f i'l H^ 1 ^' i ■ ||: i ■ ■ ■■;■ 'If !|. ::!'e ill ffii 350 FOKMS. [No. 6(3. (Si A.\d it i.s iJi'.cLAHKD AXij AGHKKu that Tile (^jinpaiiy iiiid 'J'lii' Mills ("oiniiaii.v, shall be reijrcsciitfil in this cnii- tiart lor till' pnriKjst' (if siihscriiitiim and accciitaiict' of shares by fur 1'he ("oiiiiiaiiy, and hy fui' 'IMie Cuiniiany, who shill respectively arrange for the transfer of the said paid-up shares to the shareholders in the proi)er proportions. (*,)) And jt is fl'utiiioii dkclauku a.m> ac.keiu) that the several oorenants herein contained shall hind the le;:al rei)resentatives, siie- eessors and assignees of the said i)arties resix'ctively. In "WITNESS WHiCRKOK the pirties hereto have hereunto set their hands and seals with the ('ori)orate Seal of the several Companies. Signed, sealed, and delivered, In the iiresence of, tSignedl. FORM NO. 66. I.NDE.MMTY ON ISSFK OF NHW ("KKTIFICATE. T(i The Cuniiunni. T.hnitiil. niiil A.. It., r: "' ", thr DiirclorH thrrrnf. Gentlemen,— I have lost the etM'titie^ "! 'itle, dated the day of , relating to the shares i f each, in the ahove-nnnu'd Company, of which I am the owner, and I rcMpifst you to issue to me a fre^h <'ei'titicate of title to such shares, and fn considerition thereof 1 undei'lake to indemnify yon against ;iir actions. |)roceediiigs, claims, iind demands which may l>e hrought or ninde against yon, or any of you, in consequence of your having issued such fresh certiticate, or in consequence of your per- mitting at any time lu-reafter a transfer of the aliove shai'es, or any of them, without the production of the original certiticate above referred to. (Siunnturp^ And I of concur in the above r -qnest, and guar- antee the yerformance by the said of the above undertaking. (f>ignature) Dated the day of , I'M) The loss should he proved by atl" lavit. o. 6(5. iiiltauy is (.•(•n- No. ()7.] IN'STALMKNI' SCIMP. *> "tr. t: 351 of th rtious sue t tin liU'S. ^> .<^ S cc ? 'c; a: c ■~ Si -= ^ -: ) tlu^reof. in tlio 'ciincst 's, jind list air roiijrlit liaviiifj r ptT- IT or lilirato glial Uikii I,!-'. "^ v • ' 'j: ^ (D d fe S . 5 -I g P^ if -3 ? CO c/: ^ -- -^ C c o LU 0) s ■*= "i* ■<. ~ y; ; P > ■= =< 5 s- < ^ M ^ W in ^ 5 t\ -^ "W - — _~ vt I. ' ."~ ■-' •2 H •^ (^ I ^ « ! Ui } '1 [Xo8. G8, (JO. 352 FouMs. FORM NO. 68. INSTALMENT jJST. INSTALMENT No. 1. In accordance witli a i-fsolution of tlie Board of Directors of The Hamilton Stove Company, Limited, a first call of ten percent, of tlie Capital Stock of tlieComp;my is due and payable on the .")th ilay of ]\Iay, r.MM). *i When Shareholders' to i .\niount Received. Names. 7. Instalment. ■^ Ueceived. Remarks. I'.KJd Mav •") W. J. Thomas 1,1 101 10 " II. V. Tavlor •J 10| lu June ") G. P. Sharps 400 •2,000 *10 (10 •2,01(1 4,000 ii(l,0(tO ^10 (Ml 'Interest 10 >-2(l.itlU *'20,010 Entered Cash Book, folio 1. XoTE. An lustaliiient List i^t priininil imin-diatcly ul'tt'i- any call is luaili' uiioii tlu- Capital Slock. Tliis is for purioil lutwei-ii jtli .May. wli ■!! c ill w.is [i lyiible, ami .jth .Juiii', wlnu it was received. FORM NO. 69. LIST OK SIIARHIIOLDERS. List, in duplicate, of all persons who, on the l^lst December, 190 ^vt■rt• sharfholdcrs in the (As required by Ontario Companies" Act.) Names of SharclioMi'is alphabetically arraiit^cil .\ciiU-cs .•\iiiouiit /-\ ,,..„f;,., Viiiomit of iiiiimiil ami Occui.ntion. stock lul.l. still .In.- .-u Stock. No. 70.) Sl'MMAItY i)F srAI'E OF AFFAIRS ( )F CoMPAXV. .So8 FORM NO. 70. SrM.MAUV OF S'l'ATH (»!•' Al'FAIUS OF rOMI'AW. 'I'n he liliidr ill (lniilic;ltc : (ilic ciijiy In lie I I'jinslliil ted liy IJcyis- tci'cd LctttT tci till' Frii\iii(ijii Scci'ct.'iry. 'rnruiitu, mi ur lioi'iirc tin- ciylitti (liiy of I''clirii!iry; tin- uihci- t,, he iiosiid in ilic Ilcml Ollirc not li::iii('>.i How incor]ioiat('d. wlirliicr liy Siicciiil Ait, at(> 111)1111 whii-li the liist anni'.iil iii.'etinu' of the ('oiii|iany was licid. Ainonnt of the <;i|iital of the ("oiniiany Dollaiv. Xiiinher of sluires into which it is divided Sliares. Nuniher of shares suhscrilied for and nlhitted Sliares. Amount of stock lif any) issued free from call: if none is so issui'd. this fnct to lie stated I>olliirs. Amount issued siihi";! to call Dollars. Amount of calls made on each share l'''r ii'iit. Total amount of calls renived. Dollars. Tot.'il amount of ciills iniiiaid. Dollars. Total ainonnt of shares forfrited. Dollars. Total ainonnt of shares wlii. Ii have never Iteeii alloltid or siili- scrilied f..r. I»ollars. Total amoiiiii for which -hareholdi'rs of ilic Company are lialile in respect "f unpaid "toiU held liy them. Doll;n>. If the Compntiy %»> • it'/tini) CnmiKini/. stati Xiimlii'i- of shares -old or othervi'w ili»^«>s« ■ of, Sliares. Hate at wb»«-h MHeetiiij.' the affairs of the roriipany as I he I . i.i'.rt'.i IUJI7 ««toj»ider evpfdient. w.«.i» w -j3 iKsmtrnmBmsmfi, 35-t FORMS. FORM NO. 71. [XoH. 71,72. AFFIDAVIT VEUIFYINC; LIST OF SIIAKFIIOLDFUS, A.\I» THE ATTACHED SIMMAKY OF AFFAIUS OF COMPANY. I'UOVINCE OF OnTAHIO, County of To Wit. In th(> niiiitcr of the Annu;i! Hctnrns of till.' Wf, , iuul of ■' President and Set rotary of tiu' iiliovc- I named Company, respectively nialicensed Extra-Provincial Company. i.In tilliuj; in amounts, use words not fij?ures.) I. State in full the Corporite name of the <'(jmpany. State how incoriiorated (whether by Si)eeial Act, by Letters Patent, by Declaration or otherwise). State where and under what laws in.orixirated. State name and nuniiier of Ad under which incori)orated. State place where Head Oltice of the Coniiiaiiy is situated. giviUp, where possible, street and number.* State place in Ontario frdui A\iiich the operations of the Company are directed, or at which they are cai'ried on. \ll. State names, otiices, resideaces and post ollice addresses of the otilcers of the company. II. III. IV. V. TI. ♦This will facilitate the proper delivery of the acknowledgment of this return auc future blank forms. No. 7.'}.J AtFlDAVri' Vi:Uli'VIN(i statk.mk.nt. 30J .'Uibc'i-. ipauy. .I'lters iiiated. tuiiteJ. of the >d on. "SSI'S of HlsrmrnV Na.me. Office. Re,- ihence. Post Office .\i>r>r.E.s3. President. Secretary. Treasurer. Director. Director. Ati'yiiiOnt. • • ital Sto VIII. State the amount of the Cap ck of the Cuniiiany. IX. State the iiunilxT of sliarcs into whidi it is divided. X. State tlie nnndier of shares subscrilied for and allotted. XI. State the ainonnt of stock issued subject to call. XI[, State the anionnt of calls made on each share. XIII. St;ite the total amount of calls received. XIV. State the total amount of calls unpaid. XV. State the total amount of shares forfeited. X\'r. Slate the. apiiroxiniate amount of the C(Mnpany's <„'ai)ital cmiiloyi'd in the i'rosince of Ontario. XVII. State generally the powers that the Company is e.xercisiiifi iu the I'rovince of Ontario. Such further information rcspectinj; the affairs of the Company as the directors may consider exiii'dient. FORM NO. 73. AFFIDAVIT VERIFYING STATEMENT OF AFFAlKSi OF A LICENSED EXTRA I'ROVINCIAL COMPANY. Provin'cb ok County of To Wit: We, (7^1 I In the niattt'r of the Annual Statement of The (o) and ic) of ((/) President and Sec- retary of the ab(n-e named Company, respectively make oith ancT say 1. That the Statement of the Affairs of the said Compan.\- hereto attached. to the best of our know led. i,'e, infonnali. (d) Insert city, town, villaue op name of piaco. (<\ W tlio I'resident or Secretary does not make or join mi the ;\llid;ivil, stat(> the reason thereof h-re. This afhdavit may be sworn before any .lustico of the Peace, or Commissioner for t iking Aflidavits, or Notary Pablic. 856 l-" . SiH.— Ill iiiy Iclicr nf till' day of , I gave yoii ii(jti('i' lliat at a iiicctiii^', etc. I am iinw iiislnicf ,'(1 to iiil'oriii ymi lliat the directors rciiiiiic you, oil or Ipclorc lli(> day of , to pay ilic said siitii of Si , tojLfi'tluT witli iiitcn'fsl tliiTt'oii, Ml liic latc of \n'V cciu. per auiiuiii, frmii tlio said day of up to Ilic day o: piyiiiciit. and that in tho ovciit of iioii-iiavnii'iil of tlir said call ami interest on or liffore llio said day of at the p. lace aforesaid, the shares in res|iert of wliieh sii -ii rail was ma*)e Mill he liable to lie forfeited. I am, et<-., i<( cri liiry. To . et(, FORM NO. 75. NOTICE OF C"ALL. I brs ^o sivc yun notice that the Oirectors of The <'oai- pany. Limited, have nude a eall of !?."• per shaic. ami that tin- same will bo payable to Mr. . the Treasurer of the Company, nt the Company's Olliee Street, t east, in the City of Hamilton, on Wed- nesday, the 23rd day of May next, at the hour of 10 o'clock in the fi-ronooii. Hamilton. 30th April, 1000. By order. Thos. Taylor, ;}.■ )< Nos, 77-70.] im.eih;!.; cf shauks of stock. FORM NO. 77. XOTICIO OF LOSS OF ("FirriFICATK. I-oST OR .Mlsi,.\Ui. n.r.ili.u,. Nu. ;;7. ,1,,...,! i;t,h S..,,,..,,,!,, ,-. I:m.u. ,„,• tiv.. .\un-rr. ;". '""'^ '"' ''"'"' roM.pan.v. I.in,ii,.d, iss,,,.! to ,„• ,i„. CUy 1)1' Appli^MtioM l.Mvini; 1,..,... in.Hlr (o ,I„. Co ,,„,• „. j,,,,,. ,, ,, ,;. '■"•*' ;'!• '!"■ .''l-vo r..rtiti.,,l... tin. ,,,,1.1!.. is h.n.hv u,,r.„.,l ,,;:,,i,.st iii';.'ntiiiiiii;; fur, ,,r iMiiTliiisin- il,,. oiit:iiiiil. 'I'nrolltu, !(t!l .M;iv, 1!;(M) Sii-ii till ji-'I'i-ciixiiiir. FORM NO. 78. rLElMJl-: FNDFIJ SKCTJOX 74 OF TIIIO ItAX.v ACT. In cv..,si,l,.n,ti..n o( „n i„lvaiH,> of dollars, n,M,l,. hv il.o ;'.'"" '■ ''••"''^' f" '^- I^- ••"•• ^vl^'■l' tl... sMi.l h,,„k lH,l,ls ,|„. foli;,wi„.' I'llls .,.• notes Ulr.rrihv f,U„ ,„r hill, or nolr. hrl.l. if «„„,. (),.. ^n.o.ls waivs ,111.1 m.THi.-n..lis,Mn,.Mti..i„.,l hAu^^■ ,,,■,. l„-n.l,,v :.ssi;r,„.,l to tl.J siiKl hi.hk iis .s.Tui-it.v f,„- ilu. i,,,.vin..iit, .,11 ..!■ l„.f,,n. il... '':'■',""■ "I' ""• '^^'i'l 'ulva.uv. (oj;,.tli.r with inlnvst tl...iv.„i at tlu- iMt,. ,.f ,„„• ...Mit. iKM- iiiiinnii fr,,iii tli,. ' .i.-i.v ..f <"'•• ""• the s.i.l hills ..,,.,1 „,„..s. or ,vii..wMls tl...n.„f, o, s.li.siitn.ions tlHTcfor, jiliil iiitnvsl thriT.Mi. „r a.s Ihr r„xr n„n, h,\. This sf.'iirit.v is Kivcn iiilIci- llu. pi-ovisioiis ,,r sctLui ^vyvUy- foiir ..f -Tl... Hank Aot," and i.s sul.joft to all tli.. i.n.visions .".f till' sai.I Act. Tilt' siii.l «:oO(ls, wai'os and nicrcliiuullsc arc (i.,u- ,,wm..,1 l,y ■'^'"' ■'"'•' ""^^' '•' p..sscssi,.,i. aii.l arc free from aiiv ui..rt«ayo, ■'••■i Of .har^ic thcrc.,11. (or „.s- //„ ras,< m„„ l,n, and arc in („^,rr or ?;/«(r.. ,r/„rr ,/oorf,. anK a.i.i a.v the follouin^-: iparti.Milar .Ics.-ription of ;;oo.ls assigned). Kated at I'.io To FORM NO. 79. I'r.KIXJl'J OF 811AKFS OF STOCK (Another Form.) Toronto, Having liorrowod fr.mi ,vou llic sum .if is to be repaid to you ..ii '!,e dav of , ISM) il.tllars. wliiili iii'.xr, ami wliich : S ri»« .158 FOUMS. fXo. .so. !iil{;!!i; ; I ' i,! It f "' ' ' i '4 ■ f. i' «iii)i is soiMii'i'il Ip.v my prdinissor.v iiutr in ymir fjivnr (. the culls or asst'ssmeuts llicri'on to 111' paid hy inc. 3. On llu" day of , 1!Mt . npon yonr licinp repaid the amount adviuiccd as ahovc, with interest thereon at the rate of piT cent, iier innnm, tin' said sliares and all newly crented slinres (if anyi are to he transl'ei'red to me. 4. If I shall make defjinlt in reimynient of the said advanced sum on the day of , I'.ld . (ir in paynn^nt of Hie said culls as they become due, you may, at any time afterwards. on RiviuK me days' notice of yonr intention so to do, and witlu)nt beiuK liabli' for any diminution in prices which may liave taken place in the meantime, and without any further consent by lue, sell the said shares, and any such new shires as aforesaid, at such price, or pri<'es, and in such nmnner in all respects, as you shall think proper, and nwiy retain out of the pro;'eeds the amount then due to yon, with interest thereon at the rate aforesiid, and all costs atteudiufr the said sjile, and may demand and claim of me nny balince that may remain nni)aid by the uu'ans aforesaid. (Hi.irnature nf Pledgor.) I, the undersiitned (the pledtree) iiuree to hold the said shares npon the terms and conditions before mentioned. (Signature of Pledgee.) FORM NO. 80. POWER OF ATTORNEY TO MAKE TRANSFERS. RECEIVE DIVIDENDS, ET(\ Know all men by these presents that I. do make, con- stitute and appoint of my lru(> rind lawful attorney, for me and in my name and on my Ik half, lo sell. assi;:n and trans- fer the within shares in th( capital of The Company. Limited, to me belonsinjr. to receive the consideration money, and to give 1 receiiit or receipts for the same, to receive and tfive re- <'eipts f(n- all dividends that are now duo. and that sh.all hereafter bpconio due and payable on the same, for the time beinj.'. and gen- erally to do all lawful acts roauisito for effecting the premises. Nos. 81,82.] I'OWKI! Ol' A'noitNKV. 850 licri'liy rntifyiiiL' nml ('iinliniiint: nil ilini my ^n\<\ ;itiiiiiii\v ^hiill 'lo Uioroiii, In witiicss wliorcof. I li.ivc hi'i'i'iintu set my liiiml .iiiil si>ii! nt ••>i^ 'liy of in till' year i>{ Unr Lunl one tlioii- siiiiii iiim> linnilrcil. Si^jnod find sciilcd in tlic , lU'CScnic ni fSr.lll Siiiiiatiiri'. ) FORM NO. 81. rOWKli OF ATTOltNKV TO IJKCinVK IHVIOKNDS. Know nil nion \>y these I'rcsmis that I, i4 do ciinstitntc ami appoint (if my true and liwlnl alloiMicy U> ri'ccivc from tin- 'I'rciisnnM- nt" 'I'lic I.imilcd, the dividmd i,\- divi- dends now line to me, on nil stock standiiii: in my name on the iK'oks of the said company, and to receiiil I'or the same; herchy ralilyinj,' :iml conlirminK' all that hy him may lawfully he done liy \irtne hereot' in the premises. In Witness, etc. .Si-^ned, Sealed, etc. FORM NO. 82. roWKIi OF ATTOU.NHV To SION FETFrKJN FOR I.NCOK- FOU.VTION, KTC. Know all men liy these presents, thiit I, of the of in thof '.'onnty of and rrovince of do hereliy noniinito, eoiHtitnte and appoint of Iho of in the County of in the Fiovinci' of my trm- and liiwi'nl .attorney, for nie and in my name, place and stead, and for my sole use and henefit, to execute and si^rn a iietilion to Tlis Ilonunr the I.,ioiito:iant-t>overnor in ('onmil for the incorporation hy Letters Patent, under the (Ji'eal SenI of Ontario, of The Comiiauy, I.inut(>d, and to si^n and execute iill such i)aiiers iind documents ;is are re(iuisite and necessnry for jiroenrin!; such incorporation, and to do for mo and in my mune and steail and as my acts, all and every such other thiuj; which may he necessary and rerniisite for proeurinj; sut'h ineorporation. And for .all :tnd every of the iiui'pos(>s afort'said I do hereby ^'ivo ■ind frrant to , my said attorr.ey, full and absolute power and authority to do and execute all acts, deinls, nnitters. and things necessary to be done in ind about the premises, and also full ■•^7^:^ 0^\^^ IMAGE EVALUATION TEST TARGET (MT-3) // O ..X :a .^ ^ £*• r ^j f/j fA 1.0 I.I 'i5 lljl^ 125 IIU - IIU 2.2 (40 12.0 1.8 1.25 1.4 1.6 4 ^" ► 'I V] <9%. "c^l c*. a. m> <> *a •»/• /a '/ Photographic Sciences Corporation 23 WEST MAIN STREET WEBSTER, N.Y. 14S80 (716) 872-4503 ^< Q- fe"/ fl i i .1 H ' iU t \\ :i 360 FORMS. [No. 8a. liower nnd authcirity for , iiiy said nttorncy, to appriiiif a sulistitntf or snbstitutos, and such substitution at pleasure to ro- vokis I hcrt'liy ratify inj; and lonlirniing, and agrcolnfe' to ratify, confirm and allow all and whatsocvt-r my said attorney shall law- fully 'lo. or cause to bo done, in the promises by virtue hereof. In Witness wherecif. I have hereunto set my hand and seal at , this day of , one thousand nine hundred. Siirned. sealers of the said proposed Company in respect to the said stock, iind also for me and in my name, and as my act and deed, to exi'cute and do all such assurinces, deeds, covenants and things as may be recpiisite or necessary in obtaining letters patent incor- porating said Company and in managing the afTiirs of the said proposed Company, when incorporated. And generally to act in relation to the said proi)osc(l Company as fully ind effectually in all resiH'cls as 1 myself could do, if p(>rsonally present. .Vnd I do hereby grant full power to my said attorney to sub- stitute anf th jiresents, including in such contirmMtion wliatsoexcr shall be done between the time of my decease or of the revocation of these pre- sents, and the time of such decease or revocation becoming known to my siiid iittorney, or such substitute or sulistitutes. As Witness my hand and seal llii A.D. 100 . Signed, soiled and delivered i in presence of ' di [Seal.l of l'%ir athdavit verifying, use Form No. IS, NO.S.8-1-.S7.J REVOCATION OF PoU EK OF ATT( mSKV. mi FORM NO. 84. SPECIAL CLATSKS IN I'OWEIJS OF ATTORNEY. TO DEPOSIT MONKVS AM. r^RAU" CHKurKS ,X THH PR.X.MPA./s NAMH AXU TO INVICST A.M. I{F;i.\VI:sT. Upon receipt of ais.v uunwys wl.i.I, s1.m1I I... •.•,.M f,. ,i, attonu.. .., virtue of tl.e pren.ises. to pa. or i!,: ' t^^ '^^^ "•Y"'"-- ••■• ""-•wise, with a,,v l.anl.er. hn.Ker. or o,,...,- .« -n '. ...15 ot the purposes aforesaid, or fro.u ,nne ,o .inu- to invent IH- .n.ne at the discretion of ,he said attorne.v. and from tine to -H. to sell. vnr.v, and dispose of su..h investnu-nts. and t pp v the purchase money for any of the purposes aforesaid FORM NO. 85. TO SIGN- OR I.\noR.SK IJIM.S OR .\OTKS. And to n.ak... draw, si,.,, or indorse, in n.y nan.e anv hills of ••xchan^e or i)ron..ssory nofs in which I shall l.o interested or concerned, or whi.h sh.ll 1,.. n..,uisit.. in or almut niv husiness FORM NO. 86. TO VOTIC AT MKKTI.NCS OF COMPA.NV. To vote at the nieetin;.'s of any company or c,uni)ani<'s. and otherwise to a.'t as my pro.xy or representative, in respe.'t of any sliares now held, or which may hereafter be acquired, bv me therein find for that i.urpose to si^n and ..xemte pro.vies or other instru- ments in my name and on my Ijchalf. FORM NO. 87. UEVOCATION OF I'OWEU OF ATTOltVEV. Whereas, I, ,,f ,|i,i ,,„ ,1,,, ,|.,^. ,,p A.D. IDO , by a certain instiMinicnt in writing', or letter of .Vtior- ney. make and a ,int „f ,n !„• my true and la win! attorney, in my ninie and for my use, to di.Tr set forth what t(i.. attorney was authorized to ,1,,. pnTisely in tli." lauyuaire of tlio original power), as by the same writintr. reference thereto bcin- had, will fully apiiear: Now Know all men by these presents, that I, the said for i jrood cause, have rev.iked, recalled and made void, and by these presents do revoke, recall, and nmk(> void. to all intents ami purposes, the said recited letter of attorney, ami 362 FOHMS. [Xos. 88-90. Jill powors or niithoritios tlifrciii ^.Tiintod, ind nil nets and tilings whi<'h sliiill, or iiiiiy lie doiu- or iicrforiiu'd liy virtue thereof, in niiy innniier whatsoever. (If .'mother iittoriiey is to lie iiitiiointed, oontimic thus: — \iid further know ye. that I, the suid do by these presents name. «:ood causes iind eonsideratioiis, nie hereunto )>s|ieeiiilly mov- ing, liavo revokeil, countermanded, annulled and mido void, and '.ly these presents do revoke, eountermand. annul and make void .-t certain deed-poll, or power of iittoruey. under my hand and seal, l)e:irin>,' date to of jriven. delivered and exe- cuted, and all jiowers and anthnrities whatsoever therein expressed Jind delivered. As Witness, etc. Si;;ned, sealed, etc. FORM NO. 89. RFSOLFTIOX ArTIIOinZlNC (OUFORATIOX NOTE. Resolved, That the president 1k> and hereby is atithorized to make n contract for tlie purchase' nf for the use of this corpora- tion, and is hiM'ehy authorized in cnrryin;.' out such purchase to ^ive notes of this corporation lo the iimouiit of dollars. FORM NO. 90. FREA^rBLE AND RESOLTTIOX rOXFIRMIXG ACT OF OFFICER. Whereas, by n^M'^on of the board of directors failini: to havi> n quorum at th(> lime fixed for its nvirular meetiuf: on the day of A.D. and as has been perform- iuR such duties as should have devolved up;s mid transactions of (lurinK the interim fmni A.l>. to as shown by tiie records, l)ouks of account, wrifTi);^* and events. 1)0 and the same are hereliy ratified, cunlirined and apiMoved, and declared to he and to he considered the acts and deeds of this lioard of directors. FORM NO. 91. rUEAMBLE AND RESOLUTION I>ECLARIN(; DIVIDENH. Whereas, There is to the credit of " Surplus Earnings Account." <0)- Revenue Account, if so called) on the business books of this company, .$ , over and above the current liabilities u( this company; and "Whereiis, there is to the credit of this company .$ over and above the necessary cash capital to c(Uiduct its l)usiness, therefme, be it Resolved, That a dividend amounting to .S per sliare be and the same is hereby declared from the " Surplus Karninys Ac- count " of this company, payable in cash to the shareholders of this company on each share of stock, of record on the day of A.D. 100 . FORM NO. 92. TREAMRLE AND RESOHTIOX 1 >K( I.-MtlNC OFFKE OF DIRECTOR VACANT. Whereas, by reason of ji director of this cumpauy, ccasin;? to hold shares of the capital stock of this company, iind not bein« present at any meetinvr of this board of directors since ii meeting' held on day of A.D. 1!M» , theref(jre, be it Resolved, Tliat the otllce of director as filled by be and the same is hereby declared vacant, from this day of A.D. , and that siid vacancy be tilled in acc(u-dance with the by-laws of this company by this l.oiird of Directors appoiutin.ir as a director of this company to till such vacancy, by this resolution declared; and be it further Resolved. That the Secretary of this c(unpiiny certify i cojiy of this resolution to the shareholders for actimi at their lu'xt mt'cting. FORM NO. 93. RESOLUTION OF DIRECTORS TO BORROW MONEY, .\ND CERTIFICATE OF SECRETARY. Resolven, That the of this corporation, be and hereby authorized to borrow money for this company in TT tr: i ) it! m "^ i ■ 3G4 FOIt.MS. [Nos. 04, «J5. (liscrction. niid to give thon'for such lu.tcs and pledges us ml- liilenil security to as may seem proper, and said is liereliy aulliori/.ed to make and execnie with the sinii agree- ment or agreements in respect to the securing of indehtechiess of this company now or hereafter existing to said Banii. as may lie recinired, or as nniy he expedient. Dlrevtors. I. Si'cretary of The , n company existing under and Ity virtue of the laws of tlie rrovinee of , do herehy certify that the foregoing is a trm- and correct copy of a resolution of the board of directors . [Seal.] S(cnt|,I..ATi:UALS. ;j,J5 hoUhTs l.,.m.f, ..u tlu> Mui,-i,..rr.M ,..,•..„,. „f this pmn.is,.. 1,.. ,„• ,|„.v >:.v,nu ...0 .•n..lit f..,- ,„..v l.,-,l .,..•.. .,,■ ,1... „..i ,„•..,. is „l mi,I, s.,i;. ivma.n.nfe' alt..!- „..vin« nil su.ms ,1u.. iru,.. ,.„. ,„ ,1... sai.l hul,!..,- ,„• u.l,k.rs u. to his or tlu-ir onl.T. An,l I lu.>vl,v further a«r.... that Uw huhlcr ur holders hvwot may i.iir.has,. at sai.l sal... FORM NO. 96. rifoxv. TllK HamII.T.i.V StuVK C.MrANV, Ll.MlTKl.. I. (ioo,.;:.. IV,.r Shar,.... of ,h.. Ci.y .,r hMinlnu-^h. i„ ,hat part r''- ' -'Hn Ku.pluM. ,.r ,;n,..n Hn,,.nn an,! In.la„,l ..mn S,..MI 1 -n. a hold., of 4.,M Shan. i„ ,,..,.,,,,.,.,,,,,. ,^_,,,,,,,,,,/;-^'^'^^ (-W.L.nHU.d. ,„.n...y appoint and au.l^^ . '.. (ity of Ha.u.ltun. Es„„in.. to voto for n,. and o„ n.v .,.,...„.• ... iiic and on my lich.MJf at ,1,, ,. > .11111 nil iii\ lien,' I at u. onl.tn,,. ,.,. ..xfaofdinat-y. .. ,,. .,., ,„„„ ,„, ,.„..,,^., ,.....„, "f fins (ompany, „, )„. h.ld on ,l„,v „f , and a, anv .idjoiirnmont th.-ivof (,,,■ at anv m,.,.ii.,.^ ,,f .i, .• , I 1 ,, . ,. ' ""'"'1^' ot !)ii. ( om[iaiiv that mav Witness my liand and scil thi. I^i;;!!*'!! in Mfcscncc of • liiy of i!Mi J. .fiiNK.S. [S..nl.J <;. I'. SIIAIIPK. FORM NO. 97. I{E«'i:iPT KOK COLLATKHALS WITH ATTIIOIJITV T«> SELL SAME. a ciTiiticati' for sliarcs of Kocoivcd from of tho capital sto.'k of th.' Company (in.sort othor s..,M,nti..s. if .'inyi as .•ollafcral scairity. for tho prompt payment at mmiritv of Ins promissory not.- for .hdlars. .latcd th.^ dav of ll>n . and payable months after the date th..r..of. sai.l s.M-nri- tios to 1)0 rpturnod to hiin in eas.^ sii.l not.' be th..n i,aid. In case of non-payment of said note at maturity, T am at liberty to sell the .soeuritios, or sn.'h portion as may bo no.Tssarv. oithoV at pnblio or private sal... ..r at the bn.kors- b.mr.l with.Mit noti.e, and apply proceed.s to the payment of said n.3te and expenses. ■ h S.1' M' ;! ! ''■' 'i . 1 ! i 1 ■ 300 FOI«MS. FORM NO. 98. REGISTER OF DIRECTORS. [Nos. 98, 91). Elected.' Name. Admiess. Callino. Rktired. Remarks. 1 3 2i 2 2 c> 3 2A NoTK. — ^Tlie fi-^ures in each column denote the proper breadth in inches or fractions of an inch of such column. FORM NO. 99. Specimen pa«e— REGISTER OF SHAREHOLDERS {«). Date. Name. AltDIiESS. Callino. Remakks. 2i 2i n NoTK. — The figures in each column denote the proper breadth in inches or fractions of an inch of such column. {(i) If thouf»ht desirable, this book may be omitted and the additional cohunn necessary to fjive all the particulars required by the Act, inserted in the Index to Share Ledger, Xo.lOO.] UK(JlSTt;i! <;t' TIJAN.SFKIJS. .•iG7 cc • y § r/3 IH ?5 • S fi^ (t; O CJ h a ^ v: 1— 1 O H 05 « s s* H « i fit) S a O w -«J & s o H c; s HM ^ < w i a kr V ai 3! k. H c^ -fcj r* s s j^ a 3 73 .2 93 •t-i >1 ^ •(I B s 3 C « 03 IM a> o n , , o o o ■a! <«-l O b u •saipiii g ^Bs 'J^iitpuiq .ioj iiijf.mjyr O Ed . IS O o IN N ft) !5 o „ a 2 .s c kl a ^ J5 .J5 -O 1) u «-• u ■o s Li 01 o u ' 'J «^ ^1^ -4-1 I— * c ;3 +j » o o 2 0) ^ a >. nT 13 n1 a s 3 O •ir o 8 ,o w 71 O ^ o jtj (U 01 ,2 J v>t » as o 1i lit nds loliMs. FORM NO. lOl. |.\'us. 101, l()-2 i{K<^risiTin\ itv sii.\i{i:ii(ti.i»i:i{s I'oij sniriM, iii I'lmv, (111 lici('l)\. iiiiiliT lllc piiiN isioii^ (iT llh' ((nlaiiip ( 'niiiiiiiiiics Acl. sccliun .V_'. niiiiiif .Vdii, >»illiiii L'l djiys Inuii llir i|:i|i' liciti.i. In ctinvnio a spciial ;,'('iicril iiiccliiiK ><( llif rniniiaiiy, tu lie lii'hl nl llic ('i)nipaii.\ "s Oiliic in iliis ('il.\. lur the |iMr|Hi-(. i,( cuiisidi'iiiiK. Diiil, ir tliiiiiulit lit, |ias>iiiK till' siilijniiii'il ri'siijiil lull ini' fur Mi'iii otlior biisiiu'^s as shall !<<' nit'iitioni'il in iliis ndiirc). Iki:s()i,i-rii iN. " 'riial." clc. iM'i ii mil I. siiliKilunx. Ilainillun, l.'.ili .Inly. I'.Miii. FORM NO. 102. XOTU'H n\ SIlAUKllOMtl'.KS CAI.LINC A SIMOCIAI. (;i;m:i!al MKiniNt;. NoTici;. We tile n!iilfrsi;,'iu'il sliMrclinMcrs ul" tin' ("Kiniiany nf ('anaila. I.iniitcil la Cnnipany ini-nrpnratt'il nndiT IrlliTs p.-itcnt n!' tin- I>(iniini(in of Canada), hcini: tin' Imldcfs uf mure than oiu'-t'oiirth paii ill v.ilnc nf tlu' suliscrihcd stuck ut" tlu> Cuinpany, liy virtiif of thf statutes in siii'h lich.'ilf made ami provided, hcfrhy call ii irciuTil iiu'etin.ir of the sliai-eholders of the Coinp.-iny. And take notice tli.'it the said ineeliiii,' will lie held at the liead oHlces of ihe Coinpaiiy in the city of 'I'ofonlo on the d;iy of A.I>. IJUHt, at Ihe hour of Ii o'clock in tlie afternoon. The purposes of the incetinir ire: (ll 'I'o elect directors; ('_*i to ((insider the position the Coiniiaiiy should take in reference to tlie litigation peiuliii!.' between the shareholders and the Company. Dated at Loiulon. this day of A.D. 1!MM). f SPECIAL PROVISIONS FOR INSERTION IN LETTERS PATENT. ('iiiilinii. liilinH iiiiiii.iiiiii hi llii iiiiiliinii in iiHUli ill Ihr hllriH ]iiiliiil tfiir II hull Hir I'uiiii /.Ml, nn iluiinii i,r iilh ml ion nf llnxr Simlill I'luii.'.iiiii.H riiii III iiiiiili liji Ihr iliiiitiirn or nhiiiiliuhliis, Imn i i r iIimIi mis Hull mill/ hi i,f ih.iiiii si, i.iniil siihjul h, Ihi .•niiiir Im iiinlil h s hi/ iihirli Ihv vliinhr mm nhliiiiu il. FORM NO. lOa. l{i:(Jl IIMN*; AI'I'KnN M, (»r SII.\l!i;i|n|,|ii:i{S init Al'- i'i" \<;i;.\ is. .VimI llifit llic Ciiiiiip'iiiy iMii.v .■i|p|iuiiii s.il.' i:;riiiH in iin~iirli iiiins iiihI ciiinlil iiiiis IIS .sliiill III' !iui'iM'il ii|iiiii li\ IJM' < 'iiiiiiuiiiy iiiiil ^inli ii;,'iiil», silili n|>|Miilllllli'ills 111 lir l|i|irii\ri| nl' li,\ llir >I|,| liliolilil- ol llli' ( 'iilll|i.'IIIV, ,'il 11 ;;i'Iii'|mI IIMM'lillU III III' lillli'il liil' lIlMt |iiil'|iii>i'. 11. V l.f 'lit tiV ton •111 tllf of cue III . li ■il.l lit' • I -J to to llu- FORM NO. 104. VKSTiNt; issn; a.m> .\i,i,nr.Mi';.\'r ni' siiai;i;s i.\ riii: SII.\|{|';il(H,l»KICS. 'riiiil llic sli.'iri's III' IJH' ."^Miil < 'iiiii|i;iii,\ , nlliii' lli;iii ilm-i' iiiifjiily siili.scrilii'il I'lir, siiiill III' issiii'il .iihI iillni liil in siiliMiiluT^ i Inii'inr only wlirii ;iii(l lis iliri'cli'il liy n niiijnriiy vuif uf ilir >li.iiiliiili|i'rs ill il iiit'i'l iiiL' (Inly riilii'il for lli;i| jiuriiusi', nr :\\ n iin'i-I in:.' ul' slmri'- lidiilt'i's 111 llif siiiil ( 'iiiiijiiiiiy wlii'ii ill >iiiiri'iiii|ili'r> ;iri' rnlly it liri'.'-ciili'il. FORM NO. 105. VKSTIN.|i;n-.|io|il- tTS ill II Kt'iK'Tiil nii'cliii;,' of till' ( "oiii|i;iiiy r.illi'ii for iIj;iI |iiii|io-i'. Jiiul tliiif sin li iiiiiiliiiciits sliill iilwiiys rrii'iiii' ;i vii' of ;it loii-l sixty per cfiiliini of tlic slnu'cs iln'i'dofori' siiiisiiilnil .iml ;illoili'il iiiiil not in ili'fiiiilt for liills. FORM NO. 106. YKAKFA' AlDir. Tliiit. your pctitioiHTs nro dosirons tliiit it niiiy he iliroitiil tlint the iU'ciinnts of tlio Coiiiiniiy sliiill hi- (■xiuniiii'il onrc iit Icisf in every yeiir, iiinl tliiif the lorreetness of the liiiliune slirct slnill ho aseoftiiined ami eertilied by an auditor. w.s.n.M.— 21 rr^ ) '■' ! ii 'MO loUMS. FORM NO. 107. [X(.s. 107-10!). 1MU)VII>INt' sliiiriliulili'rs iirM iitliT ill;' )'iiMrl- ini'iit iif siirli liy-liiw iir until tlir Imliliii^ Df ii ui'imtiiI iiii't'tiiiu riilliil Inr tllr pnrpiisi' nl' llplirnvillt.' sllrh li.V-ltlW, nillrss till' Mllllr simll tlli'll III' ippl'iivi'il liy till' viiti's III" till' lliilili'is 111' imt less tlliill tlllri' t'liiirllis ill Iillllllit'l' III' till' slliirrs rt'|il'rs('liti'il III sllrll llli'i'tillt'. ntlii III' nut less limn Iwiitliinls in iiuiiiIh'I- nl' nil tlir sliiirt's llii-i-i'liit'iirr issiit'il, iinil nil Ii.v-Ijiw iiI'Iit liciim sn appriivt'il liy tlif slinri'linliii pi'csci'ihcd. anil a. Tn any provisinns that may lii' made hy thi' l.iiMit.'nant- <;nv.M-iinr in Cnnncil mndifyinf: tlu- pnwcrs cnnt'cri-i'd mi tlu' said Coniliany. and in cast' of default in puyiiiK over eolleitimis, to the caiieelhuinn of the Chiirtor. in) The f'harters urnnted hy the Province of Ontario, to com- panies of this description, contain tliese chiiises. N«». IIO.J IlKillT OK SHAlli:UoLI)i;U ru IMIK IIASK. .S7l Sitltl luTC- tlio lurnisi liiiy l.y il. iiiid 'iiaiit- ■(> saitl to tlu- l> c-om- FORM NO. 110. <;iviN<; cnNTiMiN); silAliKllni.hKK. nit iiii; cum. I'ANV. Uhiiir in I'l uciiASi, Ml \i:i;s ni- |{|;'|'ii{in<; SIIAUKIinLDKU. (1( 'rillll SilVi' !!•< IliTrillil I'li'l- |irii\ iilcil, nil vliiilc 111- iiilil'i'-l ill till- < 'iiiii|uiii.v vjiiiil lit iiii.N liiiir lif iniii^rtiTid ici any in'i-nii iid iili'i'iicl> M -liarclicilili'i-, Ml lull).' lis liny sliiirclinliliT is williim lu i>iir- cliiisc said sliiiiT 111- iiilfi'csl at llu' iiri'si-rjlird iirici'. (L'l 'I'lial ill iinJiT in asccrlaiii wlictliir aii.v ^liariiiiij.hr j- williii:,' 111 iiiii'cliasi' liny '.iii'li sliari' III' iiiliii»l. tin iiri-nii. wlnllnr a -liarc- iiiildcr t>( till' ( 'iiiii|iiiiiy up iiui. |irii|iiisiiii: tn i I'liii-rrr Ilir snni.. lifiTJiial'tcr lallfd llif "rrliiiiiL' sluircln'lilfi-." ^liall u'i\i' iiniiif in wriliiiK 111 llif < 'iiiii|iiiiiy ilial \ir dcsiri's In lraiis|'r|- ilir ^mnc, aiid siirli imliic sli.ill « iiiistil III. i!.c ( 'iiiii|iaii\ lii- a^'ciil I'nr llir ^alr ul' till' .sliiiPf ur iillicr iiili'i'i'^l lii any >liai-iliiili|i'r ul' llif < 'iiiii|ian.\ al tlic pri'sirilicil pfii I'. i.'li 'I'lial ir llic ' ji|iaiiy shall illiiii llir s) ( lliiriv i|a.\s al'ti'T siii'ii iHiiicc tiiid a sliar' Imldcr ilcsirini; in ininliasi' ^inli diai'i- III- iiilcri'st, lifi'riiiat'lfr lalii ' tin- " jiiinliasiiu; sliarilinMii'." ami nIiiiII vtivc iiiilirc llifi I' 111 (111- miiriiiir sliari'linldcr. Iir --hall Im I'liniid al siicli liiiin witliiii tilhrii ila\s i Ihtim IUt as ilir rniiiiiaii.\ sliiill aiiiHiiiit ii|inii |ia.\iin'nt nl' ilic iirrsiTilnd priif. In iian^l'rr suih siiarc nr liitcri'sl tn tin- inirrliasin^' sliarrlmlili . (4i Tliat it' ill a'ly rase tin- rrtiriiiir -iiari-linlilfr at'iii' lurniniiiu' liimiid as jifnn'said, iiiakt's (IffiMilt in t ransfn rinu sm h >liari' nr iiitt'iTst, the ('iiiiiiniiiy may receive tlie imi'iliase iuiine\ and ^liall lllel'ell|Mili cilllsc the nilllle nf tin |illl'eliasinir sliiirelliilder In hi. eiiteiM'd upon the I{e;rister as liie hnldei- nf sinli share ni' inierisi, and sliall Imld tlie imrcliase iiiniiey in trust I'nr tlio ii'lifiiit: siiai-i liiilder, Ills exeeiiliii's, adiniiilst ratiH's nr assiKiis, and the reii.ipi nf the ('ninpany fur the piiri'liase iimney shall he a u i disrharL'e tn the iMirehasinu; sharehnlder, mid he shall init lie hninid in see tn the appliealiiiii tlierenf, and after the naiiie nf the piin-hasinLr ^h.ie- huldef has heeii entered in the Keirister in pni-pnrled exei-iise nf tlh' afori'Siiid iMiwor, the validity nf the prneeedinus shall nut hr i|!ii>- tioiied liy any persmi. and the purehasiiiL' sharehnlder shah U. deemed and taken tn lie the nwiiei' nf the said share nr inieiest. (."•I Tliat if within the space nf thirty days after hein^ ser\iil with such iintiee as afuresaid, the ('niiii>aii.\' shall imi liiel a share- hnlder dosiriiiK t<> purchase the ■ aine. and shall imi vive n.itice thereof in manner aforesaid, tlie retiriii;: sharehnlder shall at any tinio within six eah>ndar niontlis afterwards he at liherty tn sell and transfer such sliare or interest tn any iiersnn and at any price siiliject to the rij.'ht of the Cniiiiiany to the control ;:iven hy law in tlie case of partly paid stock: and if no such sale is niadi' within II? Hi 372 I'OU.MS, [No. 111. s\\( (i six iiiiiiitlis it sliiill lie iiiciiiiilicnt upon the rctiriiij; sluirc- holilcr to j-'ivo iKiticc a^'iiiii tn the ('miiiiimy as nlmvo prKvidtMl with tlio like ri'siilts. (,t/>) That ilio pros* rilifj i)rici> sliall iiicaii tlio auitniul [laid in nii such shari- ov iiilcrt'st, plus the i vnp(U'tiuiiati' [lart uT uiulividcd pi'ufits, uvi inchidin;; t nutiufri'Ut-l'und siu'wii hy ihi' annual lialaiico slu'ol ut till' ('uniiiany ni'xi pricu- Id Ihi- triviiig of su( h notlie, pro- vidfil that if instead of tlioft- bvin^ undividi'd prulits suth balauce shoL't shows an inipairnicni uf capital of the said C'omtiany, thou thi- pi'oi)urtiunati' pari of such inipairnit'iit shall he th-diicled from the amount paid in uiion such share or interest in ascertaining sucli prescrilieii i)rice. (7) That tin,' t'omijany sliall in all cases of receiving notice of desire to sell slock as afiuesaid, allow the other sharehuklers the opportunity to take same in proportion to tlieir respective lioldings of stuck in the Coi'ipany, making all necessary adjustments to avoid fractions of shares, and for that purpose' giving the preference in all casi's to shareholders wlio have the larger lioldings. FORM NO. 111. I'^C<)VII>1N(} AM> MAINTAININ*; A CONTINCiEXT AC- Cor.NT AM) DISTUIIU TIN<; BALANCE UF I'KOFIT^? I\ CASH AND STOCK DIVir>EM>.S. (ll That all the annual net I'aruings of the Company, after providing for an annual dicidend of six per (eiituni, shall each year be earrietl to a co pany, until such contingent account shall :imouut to ten per oeiitum of the iiaid up caiiital of the Company, and upon any subseciuenr incri'ase of tlie capital such net earnings in excess of six per centum dividend shall t'ach year lie carried to tin- credit of such ai'cuunt until the same shall reach a sum tM|ual to ten per centum iitingent iiecount opened and kept by the C( of the capital as so increase! I, and ll lid contingent account S i! is to be uiaintainiHl at a sum eipial to ten per centum of the paid up capital, ami if by ri'asoii of any exigency or necessity it shall be temporarily reduied, then as soon as possible thereafter it is to b;- restored in the maniuT hereinbefore provided, and kept estored uud maintained at the sum hereiidiefore ininti(.ned. (li) That after providing for a contingent account ns aforesaid, ling net profits shall each year be distributed and paid in cash dividends to the shareholders for the time lieing. and the balance or such i)art thereof as the Direc- tors may from time to lime determine, may be applied annually in stock dividends to be issued and allotted to the said several share- holders a< 1 (irding to their respi'ctive holdings, Bubject to stich not h than one-half of the reii i Nos. 112-115.] IHltK( T015S, KLKCTION', I'AVMKNT, IVVr, i]7^ ri'Kulntioiis nnd juljiisiiiifiit as tlic nii-ccturs iiiii,\ troiu time in tiiiic (Iclfriiiiiic upon, Aviili ii view to avuiilin;; ilic alluiiin'iit ■■<( fniciidiis of shari's, viiilil the capital stock TAYNrrAT OF DIUKC- TOHS AND OFKICKUS. Tliat the clcctiiin uf ilircctcirs and tlic appdintnunt of oilicfi's and ilu' li.xinK of silai'ics shall rt'iinjrc a iwo-ihirds voic nf tlic stookholdiTs of the saiil ('onipany at a nicciinir duly caili'd for llic purpose or at tlio annual intTtin^'. to niiikc tlic same valiil. Coni- jcntum LMiucnr ix per )l" SUill ccniuui iiccouut he paid 4iall he is to he Ircd and foresaid. ih year lie's t'*ii' le Direc- l\ially i" ll share- Ito SlK'll FORM NO. 113. rAY>ri:NT i>F fuksiohnt ani» iuufctoks. That no hydaw or resolution, either of tin' dii'cciors oi- i<( the shareholders f(jr the [laynieut of the pi-csideiit. or of my director, f(jr services of any kiinl w h.itsoever, whether such services he per- foi'uied as president or as director, or as ;in employee cif the t'oiu- pmy, shall he valid or acted niioii unless and until the same he confirmed at an annual nn'ctiuf; of the Company, or at a special' Uicetinj; of the shareholders of the Company called for that purpose, by a vote of at least si> ty per ci-ntum of the shares snhscrilu'd ami not in defatdt for calls at the tinn- of such confirmation. FORM NO. 114. FIXING QUALIFICATION (tl OIUKCTORS IX A MIMN<>* COMPANY. That no person shall he qualilied to hohl oltice in ihe Comiiany ;is a director thereof tmless he is a shareiiolder therein, ownim,' at least five hundred shares i>i the caiiiial stock of the ('ompany ahsoluiely in his own riyht, and havim: at least twenty-five i)er cent, paid u[i upon the stid shares. FORM NO. 115. PROVIDING FOR TWO-YEAR TERM FOR DIRECTORS, That the after ilirectors of the Company shall he elected by the shareholders in general meeting' of the Company assembled .at some place within the Province of Ontario for a term of two years. 374 FOHMS. FORM NO. 116. [\os. 116-120. MMHEK OF VOTES NKCKSSAUY TOIt ELECTION OF DIUECTOH. That III) sliiirchcildcr slinll iicroirtcr he clt'ctcil n (lircctdr unless lie iir >lit' I'fci'ivc at such flfction a vulc uT at least sixty iicr (•cii'-iiin (pf till' shares suliserihed, ami imt in ilefanit f' r rails at the 'inie of such election. FORM NO. 117. PAYMENT (>F FKOFITS IN OIVIDENOS. The net eaininirs cii' tlie ('nnipany .-iftei' la'cividlnir thenuni any sinkin.L' land recniired U>v Imnds nv deheni ui'es, ind al'tei- settii.i; .aside a I'e.asunalde peri'entave fur ;i ciinlinjreiit fund, sliall he ai>- plied each ye.ar in luiyinent of dividends tn sh.arehnlders. :! ; U FORM NO. 118. CASH niVIOENI). Tliat vdnr iietitiuiiei-s are ilesiiuns that it may he directed tint at least seventy-live iier ceiitnm 111' the net yearly pfulits uf the ("nnipany slndl each year he divided anmnir the sliaivhoklers in dividends in IV1I>ENI). Tile difeciiirs shall have imwei- al'ier ital and after settin;; aside ;uiy lest that m;iy he presci'ihcd hy the hydaws of the Comiiany. to pay any fui'thei- profits earned hy the ("omiiaiiy. or any part thereof they sue lit hy the issue to the sharidmlilers of fully paid up shares of tlio Coiniiany in lieu of lllliflll.V I'nr scl'V pa i( cs rciiilcrt il ill iiliuin;.' nl' llic sli.ins in tlic ('nin- ny's capitjil. nr jiny ilclniitiirc m- utlicr securities ol" tlic Coiii- piiiiy, i>r in <>r .iImmii tlic fnriiialiiMi m- pniiiintinii nf tlic < 'iniipaiiy. cr tlu' cuiKJiKt of its liiisintss. FORM NO. 121. rijoHiiuTi.\<; coMrANV poim; \V(»kk in connkctiox WITH I,I(jr offi- cials OF TIN-: FMVFK.^ITV OF TOUOXTO AXIi TIIIO SCHOOL OF I'UACTICAI, SCIFXCF. AXI> WF IHUIOC'l" that the rivhr to acquire ami liohl ^lla^cs ill the Slid Cliili shall lie limitcil to the iicrsoiis iiiciitioneiir Charter, and to any Craduate or riidei-( Jradnatc of the ' i- versity of 'I'oronto. o" of tiic School of I'rac s.iid The University of Toronto, or (he sai swell duties as the Board may from time to time assign to them, the salary of the said to be !?1,."00 per annum for the tirst two years, and of the said .$!tOO for the tirst year and .$L-00 for the second year. Thereafter their salaries shall bt? equal in amount but shall be lixed by the Board. I'rovided however that uo otlicer or servin*: of the Company shall in respect of any financial year of the Company be paid a salary or other allowance of any kind (excluding dividend) ainoiin;- iug in all to more thin $1.50(1, unless the Company shall have earned profits for such year, which shall after having provided for imp.iir- nient of contingent fund, if any. as aforesaid leave a sutllcient bal- ance to pay to shareholders a cash dividend of not less than six l)er centum. Nos. 125- 127. J I'ltKI'KIIKNCK STOCK. 377 FORM NO. 125. I'KIOrKUKNC'IO STO("K WITH I'lXKI* KIVIhKNK AM> riilOKITV IN ("ASK OF WI.MUNC IT. That the said stuck is to he iliviilcil inM two llioiisaiicl sli.-ircs nf one hiiiiilrcil dnllars cadi, nl' wliicli diii' llmiisaiiil sliari'S siuiil lie I'rolVri'iHO Stocli having a pricirity iis tu icpayiiH'iit <>1" ciipilai in the onso of a (lissululiuii or wiinliii^'-iii) over the Uitliiiarv or ('om- iiioii slock of tilt' cniiiiiaiiy, and liaviii;: a tirsi, tixfd. prcfci-ficc, annual dividend uf seven per iciit. pa\alil(' half vcirly. FORM NO. 126. rUEFERENCE STOCK WITH FIXED 1)IVIDE.M>S AND I'moUlTY ON A DTSSOLFTION. (Another Form.) That five thousand shares of the ciiiiital stock of the Company shall be preference stock, and shall confer on the holders thoreof the rijilit to a fi.xed. ciininlative. jn-efereiice dividend at the rate n{ five per centum per annum on the amount paid up thertdii, such dividend to he jiayahle half-yearly on such days as the direiioi's of the Company niay determine, hut to he iiayalde only iint of jirotits, and such preference shires shall not In' entitled to parlicipjile in I'urther dividends or i)rofits. Said preference shares sli.-ill also con- fer on the hohlers thereof, in case the Company shall he wound up or its assets otherwise distriluited, the rij;ht to have the surplus assets applicable for distribution amon>^ the sharehulders applied first in payment of the capital paid u]) on such preference shares before any portion of such suri)lus assets is distributed !imon,i,' holders of shares not entitled to siuh preferences, but the holders of such preference shares shall not be entitled to pirticipate in any surplus remaining after the whole amount of capital paid up on such preference shares has been returned to the holders thereof. FORM NO. 127. TKEFEKENCE SHAKES WITH FIXED DIVH^ENDS AND rKIORITY ON A DISSOLUTION, AND RESERVE FUND. 1. The preference shares shall confer the rij-'ht to a ti.xed cumu- lative preferi'ntial dividend at the rate of seven per centum i)ayalile half-yearly, and the right in a liiiuidation. dissidution or winding-ui) to repayment of capital in priority to the ordinary shires, but they shall not confer a right to any further participation in prolits (jr assets. 378 FOHMS. [No. 12S. 2. Twonty-fivo por contuin of tlic Imlain'c of tlio net fiiriiiiii.'s of tlic Coiiiiuiiiy. after tlic piyiiicnt of tlic sfvrii iicr cfiifiiiii flivi- (lonil oil the prt'fcrcni'c sloiU shall lie aimiiiilly traiisfcrrcd to ■,\ lU'scrvc Afcoiiiit ill the liooks of the ( 'oiiipaiiy, tln" lictlcr to secure to tile I'referrecl Sliiireilolders the piiyillellt of tile seven per celltlim ADIHTIOX.VL l)!VII>i;.\I»S, IKIOIJITV ().\ A IHSSOMTION A.\l> wrnr kkhit to ski.kct onk idUKcntu a.\i> also KLKCT A r.OAKI* OF DIKKCToKS. That of the caiiital stock of the Ciuiipany one tliousjind shares, that is to say. one Immlred thousand dolla. ;. shall he issued as pre- ference stock and shall have priority as illnws. that i> to say. — 'I'lie profits iif the ( 'iuii]i;iiiy which it shall from tim<' to time he deter- mined to distriliiite shall he aiiiilicalile: Firstly, to the payment of n fixed cumulative pret'ereiit ial divi- dciiil at the rite of six jier centum jier annum on the capital jiaii* up oil the said |U-efcrelice shares. Si'condly ai;d next, after the payment of the said dividend i.t the rate of six per centum per annum on the preference shares, there shall lie set aside iiiinu.ally nut of the net profits of the ("ompaiiy during the jieriod of fifteen years, the sum of five thousand dollars each year as ,i y:uarantee t>v reserve fund to secure to the said pre- ference shareholders the annual payment of six jicr centum dividend on their said iirefereiice sh.ares duriiii;' the said period, and the said sum so s(>t ajiart shall he transferred hy the Coiiiiiany to a 'I'rustee or Trust Company, to hold upon a I >ecl;iratioii nf Trust for the purposes hert'inhefore referred to. and next after the satisfaction of siuli purpose for the L'eneral lieiietit and aihantaire of tlu' Coiii- Piiiiy heridiy incorpiu'ated and the shareholders thereof. Thinlly: namely after the payment of the id dividend to the preference shareholders, and after setiiii;.' ap;.,i the said annual sum Iiereinlief>Ur lIU'lllliiT 111" tilt' liiiiird 111' I (il'i'itdis 111' llii' < 'iiln|i,ili>'. 'I'llf siiid IHfrt'lrlli r sll.-llts sli.-ill filsi) iniil't'i' ii riirlii III ininriiy in tlif rt'tnni id' <-;iiiilal iiiimi .1 w'iiidiiiu: up, dissnliitimi or liipiidiil iuii ul' llif < 'niiipiiiiy. it lit'int; tlii> iiitfiitiiiii 111' iliis pnivisiipii ti> iiiMJit- ihr sImIiis mi' tlu' pri'l'iTi'mo stiifkliiililt'i's as lict wt'i'ii iliriiiM'lvfs and ilii' Imldcrs nf ilir nrdiiiary stiifk nil any winding up. ilissnliitiiiii nr liipiid.itinii nf tlif Cniiniany, 111- nil tiiy divisinii nl" lapital, tlmt id' sciMirid sliaridinldtTs liavin;; lirst rlaiiii and cliiriri' iipnii tin' assris nf ihc Cninpany. and \\l;iist' tlainis >li;iJl lit' j aid in full mit of tin' assris nf tlif ('ninpany in'Xl and lii'si afitT llii' sal isfml imi nf tlu' lialiilitiis ind iiidt'litfdui'ss nf lilt' Cninpany In its ircdilnrs. TIU' s.aid llnldcrs nf pli'l'iTi'lli I' sliari'S shall, suliji'il In llir prn visiniis nf thi' siiid Ail. alsii liavt' l!n' riirlit in tin' t'vi'iil nf drfault i)f tilt' Cninpany in pay an iniinal dividt'iid at llii' rati' lirrt'inln'fni'o iiu'iitiniii'd, if in ilii'ir disiifiinn iliry think prnprr In do r-n. in rh'i't ;i Itnard nf Diri'iliifs w Im ni;i,\ In.' lakrii rxfliisivrly fniiii ilm said prt'ffrt'lnt'-sliart'linlili'rs, and llm said Itnaril nf I Uri'i-lm's. uinliT iln- dirt'rtiiin nf tin' said pri'fi'ri'iiii'-sh.-iridinldi'rs shall ilmrrafifr i-mi- liiiMi' and niaiiai;!' and cniiirnl llm Imsint'ss and affairs nf lin- Cninpany sn Iniii; as may Im inii^idnrid nni'ssary ain' I'Xiniiin: liy thf !«aid prffiTt'iiti'-sliai't'liuldfrN. FORM NO. 120. rREFERENCK SFIAI^HS WITH ((I'TION A.iillars nil f:\vU ^harn. in rai-li and nvrry \i-;ir. nr. ;ii lilt' option iif tilt' Imlilt'i's of •-iirli pi-ffi'i'i'iift' stock wlialsocvor ili\idt'iid may Ijo tlfflinil at any linu' mi the onliiiary stofk of tliu foiii[i;iny. FORM NO. 130. REDEMPTION OF I'lJEFElJE.NCE STOCK I'.V COMPANY. Tlif Company may frmi! liiiif io linif pnisiiani in livdaw duly passfd for that piirimsf. and ratitifd hy tin- shai-f Imldfrs at a >pi'fial iiat'tiiiK to If talltil for that iniiiinsf, nr at any annual or gfiifral if ii IMl! 1 r 11 .sso FOIIMS. [Nos. 181-133. infofintr, nMloom (w buy in for fiiiKcllutinn nny and nil of tlio piv- fcrrcd stock of tlic ('oin|iiiny. witlioiit tlio ronsoiit of iho owners or holders fhorcof. upon rcpayni first interim dividend instalment declared such retiring or redemption to be at par plus a iiremiuni of Ten Dollars lifKb upon each of the said preference shares of stock. FORM NO. 132. GIVING SHARE OF PROFITS AS SALARY. The directors shall have power to pay the salaries of any of the Company's oHicors Mho agree thereto by allowing to them a per- centage of the net annual profits earned by the Company. FORM NO. 133. PROVIDING. IN LETTERS PATENT, FOR REPEAL OR AL- TERATION OF SPECIAL PROVISIONS THEREIN. Tlie foregoing special provisions or any of them except clauses and may from time to time be repealed or amended by by-law passed at a general meeting called for that purpose. "' . NoS. l.'U-18(j.] SI'KCIAL I'KOVI.SIONS. :}.si l.ut only hy tlu. v..tcs of tlir l,„l,|,.rs of „ni l...ss than fonr-tiftlis in nuinlicr of tlu. sIimi-cs ivinvx.ntcd at mi. h ni,ciin«, inid ..f u„i Wsa than thiVL-ldurths in niinil.cf ,,i' ill sliar.'s ihrivtofor,. iN>n.d. FORM NO. 134. PKOVIDIXc; Vim ISSCK OF UKSKUVKD STOCK. That $l(;i',(iOO of the Capital Stn.k ,.r th.- Cun.„anv .shall la- n- MTvod and shall hr i..sn,.d iT.n, tin,.. ,„ ,i„,.. a.s tlu- H..ar.l ..f I».rnt..rs. tuahTth,. aMth..nt.v of a r..s..iH,i.,n „r ,h.. ShMn.lml.l.Ts iN.s.x.'d hy a n.aj.jrity .,f thr,.,.-,-.Hirths at a ..,,..,ial nun in;; vall..,l ''"• ""• lH.r|..,sc., .„• at tlu. annual K(.n..ral nu...tin;;-. mav .l..ti..-n.in,. n.vuk..i ahvay.s. that any part ..f .sn.h Capital Si„. U whi.h it n,av M' .h..-uh.d t.. issu.. .sh.ll lirst h,. „|f,..vd t.. tl... r..sp....,ivt. ShurJ- l'<-hl(.rs uf tlu> C.wnpany pf., rata a.....,nlinu- t.. liu. shaivs h..|.l |,v "::"" '■''■^l'^""v,.ly, aiul .shall ho all..tt,.,l t.. ..tlu.fs ..nlv altcf M..i. <|ft«.r has not hui.!! avaik.d .if. ■' FORM NO. 135. inOQUIKIXG ArPROVAL OF SUA ItFIlOLOKUS FOK IX- CHKASF OF SALARY. Tlu. salai-y .,r mnuiu.rali„n ..f any .,111.,.,- ,„• ..n,pl„v.... ,.r ,1,,. ^-np.ny s^.all not ox..,...! in any u,u. y.ar the sn.n o, ^Ur>iA>Mn, m OSS lu. Shan.h.,hU,,., hy ....solntion pass.l by a tnajority of thr...- gonoral nioetuig, authorizo an iiRron.sc FORM NO. 136. GIVING SIIAKEIIOLDEHS PRIOIt RIGHT TO SIBSCKIHE FOR STOCK. That s.vo by the d.-^lat-ation ..r st.-.-k dividon.ls as afo.vsaid no ..ap.tal .stock of th. said Cotnpany wlu.th.-r anthori...d hv those Our saul Letters Patent or by any supplenu-ntary Letters 'patent or .,therwise. save and except the stock subscribed for bv the appli- cants for these our said Letters I-.tent o„ the occasion .."f the appli- cation for su.h Letters Patent shall at any time be issue.l .,r all..tt,..l except niu.n the terms of the then existing shaivlu.l.lers havii..^ the pn..r n;:ht t.. snbscrile an.l tak,- su.h a.hiiti.uial .ajnial at par in proportu.n to their hohliuKs, subject to s,nh n.^rulations an.l -uliust- im.nt as tlu- directors may from time to tinu- .lct..nnine i.p.m «ith n view to av.)iding the allotment of fracthms of shares. 3«2 FORMS. [Xu. 137. I 1 ! > ! 1 _"«_ LANCE. < &4 1 ii§i§;?;ii c - — - -^ * w •■* « »i< c>i « '-. •.■; •- — ... 1 Eft i J H B OS 1 1 1 1 1 " 1 ; *s S'. 1 tn mm ^ • „ e o o = c '- o >.T 1 .., 1 c < i ceo 'M X T •" --■ 1 s &< 1 -« --l rt « m 5! , 1 "e . IK 1 1 ^ c , c o o o c 1 _c c • - -^ rr - " — 1 »r"! ^a ^^ 1 : "^ 1 •m b 1 o 1 .'^^ T. o o o ->■ 2 ? "o -^ . &H l-< « B '^ 1 = 1 (M • . 1 05 i 5 § i 1 "T • o H i d5 1 1 In pecimen Page. C.B. Trans- Fol. ferNo. 1 r- ri n \ 1 p c f¥ 1.-. ;i — (>• — O 1 1 't*/ -- X. ■* '■: "o 1 «3 ) • .49 1 1 o CQ • • S * 1 1 1 1 : C S o 1 o ^ c-i ^ ',^< 5 •-ri "u rt coo c ^^, w^ (U o •-' e>j rt ax ".■5 ^ 1 1 _c u ■ u . u '. u " u 1 59 ° ^^wi -ti Cj2 *"t2 1 2 1 o 1 1 « s: - i,aiiHiSi.St- <^ j U HOH;-!HOH 1 4) O — IN j .c CO o 1 t-< «i. C-. :3:s5::-:ci 1 -I 1 a t-H f-^ 1^ 1 1 Q. 1 c ^ ■»^>u}Wc(5u;Ol.'^^-(^>)»ft 1 rM — 5V1 r-l i-H M ^ 1 I-! Pi| l-S < i-I ^ l-S j ,^ ^ -^ 1 ... . 1 ^ 1 1 s 11 il s a o rji ■ O m -.X "o B .a c 5 o e S o "o u ,iH o --r:i ej f-^ m C • *•« S S s Bt « f1 09 U kr< ■»/ i 1 1 K H rax • O ; ;z; Xo. 138.] 00 C5 o 5 r o o H a H H HI THANSFKH (JF SIlAllES. a 3 <5C 5 o y < H W 'J m > c h 'I t > ^ H .:i: u X .2 o a, ^ 3 I - ;i.s({ o k 7. i' i - L> ^ C CO to > >*J -' 5ft i /. K to at ^ .1 -• i «§ ■^ 'I 'i I- i ni i'' 'ii 384 KOHMS. [XuH. r.H), 140. FORM NO. 139. TItANSFKK (H' SlIAUKS A.NOTIIKU lOUM. Fur viiliic rccfivfil licirliy sell, issi>.'ii aiilifin's of till' ('ii|iiial Stock rrpn'si'iilctl liy the wiiliiii I 'crtiliiatc, aiitl ilu lici't-liy ini'Vdi'alily cinistiiutf ami apiiniiii my attiiriu'v to tt'ati>l'{'r llic said ntoiU on (lie IjooUs of llu> witliiii namcil Coiiiiiaiiy with I'lill powiT oC siilistitiitiun in tlu' prcnilsi'H. Witness my liainl anil sivtl this In Ihr L.n-s,.n.o - f ,,.,_^. ^^ ,,„, Notict'.— This form is iisiiaily iirintcd upon tiio liack of the Stock ('crliticati'. The siKmitiifo to this assimimcnt must cor- rcsponij witii thi' name as uriticii upon the faci- of tin.' Ccr'iticaie in I'vciy iiai'liciiiar witiioiit alteration or enlaf;.'eiiicnt or any cliiui;,'e w haieviT. FORM NO. 140. WAlVHi: OF NOTICE OF MEKTINc; OF IN( "Oltl'OUATOKS. We, the undersigned, liein« all the Incorpoi alois and all the Se.lisi fillers to tlu' stock of the Company, oi';.'ani/.ed under the laws of , haviiiK its principal otlice at , do hereby waive notice of the time, place and purpose of the lirsi nu'etiiiK of the Stockholders of the siiid Company, and do lix the day of . 1110 , at o'clock in the noon, as the lime, ami the otlue of at , as the pliu e of the lirst iLceiin^' of the Incorporators and Suhscritiers to the stock of said Comp.'iny. And wo do luu-eliy waive all the recpiireinents of the Statutes lai as to the notice of this meeting:, and the luililicatiiui thereof; and we do consent to the trjiusaetion of such business as may come before said moetiuK. Dated . 190 . ui) If it be ii subse(iuent meetinj; insert here " aud Ri/-htH>i." m <51 VICTORIA, ClIAlTKk l!i. An Act, to ai'ieiul tlio ()iit;iri.) ('..ii,))aiii,.s Act. Assni/r,/ I., i;ili Janinirii, ISHf.. I I KR MA.IKSTV. l.v ami ui.lMlH. ..Hlvin. .,H| ...,,,s..,,, "»' IIh- f.c^ishitiv.. Assniil.lv „r H,,. |',uviii,,. ..f Onljino. ciijicis iis rollctws:-- X''<-U"„s /. .:. „,„( ;. ,„• this Art l,.,rr L,„ /,.,,,,,/ ,, „,,;,. \. rl'xrsn, ti.,t Art. Srrti.n. :', :; „„./ / A.., /,„,, ,,^„,„,,, /„^ ,,.. I /(•- Ld/K V-V, ,ni,l air imt i),srit,il hrrr. S. TIu' p,M.alti..s i.invi.!,.,! I.v tl,,. sai.l Art .,m si.all l.o lu.c.n.w iyovrraM..onlvhvarii,mai il,..s,ii, of. o,- l„unul,, uiilnur""- li.c wnltcn .•onsrni of. ,1,,. Ai io,„,.v ( H-n.-ral ,.f ,|„. I'l'ovuu-o of Uiiiai'i(.. «. In a,l,li(io„ t„ ,1... pow.M- niv,.,, I.v ,.|ia,.r.-r \us uf K,„.aui„« 1.C hcv.s..) Sale at ii premiuia or discount, ss. (■), 7. DiiiKCTous' LiAiiiiarv roii wa^ks, ET( ., S. H. Kkituns, s !t. ExTUA-PitovisiiAi- (^l^n■A^■Il•;s, ss. 10, 11. OfIKNTKS AM) Pknai-tiks, ss. 7, I'i. Sale of shares at discount, s. 7. False returns, s. 12. COMI'ANIKS Kdll CU.NSlIirtriNli \\(ll;KS ON MINlXil LA.NIiS, S. lo. ) ; f i ■. Sluiit litlt' Apiilicii- tiiiii iij Aut Iiiccrimni- tioii liy l.ftlcr's I'atfiit. Kev. Stilt.. c. I'Jl. HVA{ .MA.IKSTV. by iiiid with llic iidvifc ;mrovisions of this Ad. li. Th'' l.iciilciiaiU < !o\ cinoi' in Coinnil may. hy h'l- t<'rs iiiUont nndci- the (iroal Seal. ;;r;int a chartrr iiiidci' 7'Ar (hihirin Cnni /mii Irs' Ai'L to any number of ]»ei'sons. not h'ss tlian lixc. who pdilion (liei-efor. conslinitini.; such persons, iind oliieis who mny become shareliohlers in the con'-iiiiny Iheielty ciciiled. a body corixaate and jxditic, for the |»nr|tose of eiiii'yin;:' on witidn the I'rov- ime of (Mitario. or any of the counties and distiids liierein. the business and o|)ei'iilions (d' a nnnin^. mili- iiiji'. reduction and (h'\ cb;) iuent company, or such busi iiess and operations ;is may be set forth in (iic h'tleis l»atent (//). ((;) 'I'lic I >i'piirtni('nt rccinircs carli inciiiinii niiniiij: conipMiiy. on its (i|)i)lif!iticiii. til show, both by its I'ctitiipn iind its Mnnnrjiiiduin of AjrriM'iiiciit Mild Stock Ud t.. sell and otherwise dispose of the same. „r anv part thereof, or any interesf theicin; (/') To a.'.inin- l.y pnrchas,.. lease, eoncesshm lirrns,. <'X<-l.anj.e or other leoal lith, mines, mininji lands. ..ase- menls. mu.eral properties, or any inter.-st therein, min- ''••ills anNr.\lll() .MININC fd.MI'AMKS ACT, icii. i!>: I' I '!'(» l;iUt'. ;ic<|iiir(' mikI hold as (lie (•<»nsi(l<'i-;U ioii I' 1 urcs. iiiclnis (»r iiiiiicinls s<»l(l or (M lirrwist' (lis|Mts<'i| of, or I'nr <;(mm1s sii|i|ili('(l. or tor \\<»ik (lone h_v coiilriicf or ot lioi'wiso. sliMi'cs, (IcIh'Iii iiics. lioiids »m' (HIici- scciiii lies of or ill ;iiiy oiIkm' coiuitiiuv lia\iii,i; oltjccts siiiiilai- lo iliosc of a coiiiiiaiiv iii<'or|)oral('(l uiulcr this Act,, am! io sell oi- ol lici'W is<' dispose of tlic same; (/I To t'lilcr iiilo any ai'iaiiiiciiu'iu foi- sliariiii: pro- tits, niiioii of iiitrrrsis, or co »i|M'ral ion wiMi any other jierson or eonijiany. rairyinu on (»r ahcnit to carry on any Inisiuess or transaction wliich may lie of lienelil lo a company incoi'iMirated umler tliis Act; !'/( To pni'ihase or otlierwise ac(inire and unchatalse all or any ]iart of the ass<'ts. Inisiness. projieriy. pi-i\i- l'-i;('s. c(»nti'acls. liiihls, oMiviations and lialdlities of any person or conijiany cari'yini: <>h any pari of tiie Inisiness which a company incorporated under this Act is author i/<'d lo carry (»u, or possessed of property suitalile I'oi- I he ]Mir|ioses 1 hereof: 1//I '!'(( siiltscrilie for and lake and hold shaics or slock in any com|iany iiicoriioraled as pro\ iy resolution passed ai a sjiecial general nieetinii' called for that purpose; and f/'l To (h» all such ads. matters and things a s are incidental or necessary to the due aliainmenl of tl ali(i\(' olijects. or an\' of them. ST(~HK AM) SH \l^i:>. ii No |ii'r- nl liiilijlitv •». ill XolwithslandinjLi' anylhiii",' to the ('oiilrary in lu-v, stilt.' Till' (hihirln Ciiiiiji'iiiiis All contained, the letters iialenl ,. nil ' ' incorpuratiiiy a uiiniii7. \{'\i\\ ion lis|M»S('ll ■(•lltriirt • scfiiri similiir \(l,. anil iiip pro- iiv oiIht •alTV OH clirlil l<> lulrrtiilv'- iy. ]»rivi- I'S of .ii:\ li\isiu('ss s aul lioi- Uilil'' '.'or ■;liiii-('S or lioldiiit:. ir. ro;\\ \i, 1,1 Miii.i ^^■. 1N!» mirai'.v in •rs ]»at<'nl ct inav, if llio iM'litioii of llio ii|>|ili(':iiii so i(i|iiii-cs. coiiiaiii a pro \ isi(»n llial no lial»ilil,\ in cxc.-ss of ilio aiiioiinl ariiiallx paid, or auiTcd lo ho |>aid. to ilii> coiiiiiaiiy for slian-s. Iln'i-cin shall alladi to any lioldor of siidi sliaics. |iio\idod. lio\\('\or, that no such shaios shall lie issind al a discount, or any ralo othci- than had pic\ ioiisly Ihch sanciioiMMJ hy t ho coiii|»any. iinh-ss <'.\|(rcssly am lioii/.i d hy a by-law ('/I of (ho conijiany lixin.u- and doclariiii: lli<- rate of discount and any ollior. if any. Icriiis and c<»n dilious (>{' issue, and further ]M'o\ ided that a cojiy of such l>\-la\v shall, williin t went \' four hours after the li\ law '•^•'■'" nri-l 1.1- was sancli(»ned. lie liy registered letter I 'ansniii led to ^'niici. the l'ro\iiicial Secretary, and that sudi copy shall he verilied as a true copy hy the Joint allida\il of the presi- dent and secretary, and if there aie no such olVicers. or they, or either of theiii. are oi' is. al the proper ijnie oiii of this rro\ince. or otherwise iinahle to make the saiiio, hy the aHidavit of the president or secretary and oiu- of the directors, or two of the direci(u-s. as the case may re(|uire; and if llie president or secretary does not niakf or join in I he atlidavit. I he reason t hereof shall he staled in llie suhslitiiled aflida\il; and any comiiany which refuses or fails to comply with the jirovisioii of this section, relative to the I ransmissioii of a copy rori(hd. IM r.y iiii OnliT in Cmiiril ,1;ii.m1 .".l-t M;i\-. ts'.i'.i, it w.-i- in tli- piililic iincrcst iiml in nnl. r tliiit tlic iiriicticr sli.ill l«' lixcil. ilii'cct.'.l iliiit (lie sliiirc i-)i|iitil 1)1" liny iniiiiir_' coiiipiiny siiall imt lie iliviili'i] into siiarcs nt' ji jiar \iiliii' li'-< tlwiu i \\cnty-ti\(' cents cirli. ffff .m 390 " No i)^i- sdiml liii- Ifilitv ■ ti> niiin'iiv on (locuiiieiitJ iasiieii Ijy ooiiipaiiy. Sale of stock on iionimv- iiiciit of call-. ONTAUK^ MlNINTi C(>MPANIES ACT. [Cll. 1!)7. (•('I'tiliciitcs arc issued in respect of shares subject t«» call, the words ■' Subject to Call"; or if in resi»«'ct of shares not subject to call, the words "Not subject to (.'all," accordinj; to the fact. (.'{| Every niinin*; company, the charter of which contains the said ju'ovision. shall have written or printed on its charter, jtrospectus, stock-cert iticates. b(>nds. con- tracts, ayreenients, notices, advertisements and other official publications, ami in all bills of exchange, ]iromis- s(U'y notes, indorsements, che(iues, and orders for money or <;oods ]»uriK>rtinji' to be sijiiied by or on behalf of the comjtany. and in all bills of par' 'ds, invoices, and re- ceipts of the com]»any, immediately after or under the name of smh company, and shall have enjiraved upon its seal the wcu'ds *' Xo I'ersonal Liability"; and every such company whiublic auction to the hifihest bidder for cash by fiivinji' mdice of such sale in some newspaper ]>ublished at the ]»lace where the prin- cipal otlice of the conqiany is situated. (M' in case no newspaper is publislu'd ther«'at. then in a newspaper published in the nearest place to said otlice. f(»r a jieriod of one month; and said notice shall contain the nundters of the sto(dv-certiticate or stock-ciMtiticates in respt ct of such shares and the nundier of shares, the amount of the assessment dtie and unpaid and the time and place of sale; and in addition to the publication of the notice aforesaid, notice shall be personally served Ch. 197.] NO PEUSONAL LIAIULITV 891 upon such sharolioUh'i' l»y rc^iisicicd Intci- m.iilcd t»t lii> last known addrc and if the lioldt-r of sudi shaft's fails to pay the amount duo upon such shatos with in torcst upon the same and cost <»f advert isiiiroceed to sell the same, or such ]>ortion thereof as shall suth'i''J made upon liis shares, nor shall such shareholder be per- sonally liable for any debt contracted by the company or for any sum payable by the company. <». (ll Xotwithstandiny anvthinji' to the coiitiarv in Art contained, anv minin;;- com- sliiin iilinrs |ii'eiainiii or at a liiscilllllt. lii'v. Stat. Tlic On' trio Conij pany (whose charter does n(»t contain a ]»rovision that no liability beyond the amount actually paid. «»r a^reetK'"uu. to be i)aid. upon shares in smh company by the holder thereof shall attach to such lutlderi. nuiy. for the lawful purposes of the company and no other, from time to time, by by-law. to be exi)ressly sanctioned b.\ the com- pany and to be made for the puri)ose. dispose (»f shares in the comi>any at such premium, or at s\ich discount and on such terms and conditions as to the company seems to be advantageous nnd ]»roper; provided, how- ever, that a copy of such by-law shall, within twenty- four hours after the by-law was sanctioned, be liy rej^is- tered letter transmit ti'd t(» the I't'ovincinl Secretai-y. and that such copy shall be veiilied as a true copy by the joint attidavit of the pri^sident and secretary, and if there are no such ofticers. or they, or either of them, are or is. at the ])roj»er time out of this I'rovince. or other- wise unable to nnike the same, by the attidavit of the president or secretary and one of the directors, or two of the directors, as the case may refjuire: and if the at a Vim; tic I tion I) law. f by- : liil) gt ' ' in ^■■'^.-k' 392 oNTAUio Mixixr; companies act. [Cli. J97- jn'osidont or socrotary docs not make or join in llic afti davit, the reason thereof shall be stated in the siihsti- lutod allidavit; and any company which refnses or fails to comply with the provision of this section relative io the transmission of a copy of the by-law to the JMovin- cial Seci'etary, shall incur a penalty of fiM> for every day durin}^ which default continues. fHce'^or'"" *-) E^'^'iT stock-certillcate issued in respect of any flcote''*"' ''^''•"'^' sold or disposed of by the comi)any under tlie pro- visions of this section shall bear upon the face thereof, distinctly written or printed in red ink. aft<'r the name of the company, the words " ()i»eratinj? under The On- tario Miniiii/ Companies Incorporalion Act,'' and where such stock-certiticates ai'e in resj)ect of shares sold, or disposed of at a discount, the words " Issued by tlie Com])an3' at a discount of ])er centum,"' the rate of discount to be mentioned as a part of such words. .Selling shares be- low par. l,iflV)ility of (Ureetois for wn(,'es. 7. Xo share in a mining company shall be issued, sold, or be in any oflier manner disjjosed of at a rate less than par, unless under the authority of a by-law jtassed by virtue of this Act; and any director, otticer or agent of a company who acts in contravention of this section shall, on conviction thereof, be liable to a tine of ^'200 and to the costs of conviction, and in d»'fault of l)avment of such line and costs mav be sentenced to imprisonment for a period not exceeding three months. directors' LIAP.1MTV. 8. Notwithstanding anything contained in this Act. the directors of the company shall be jointly and sever- ally liable to the labourers, servants and a[)i)rentices thereof, for all debts not exceeding one year's wages due for services performed for the comi)any while they aro such directors respectively; but no director shall be liable to an action therefor, unless the company has been sued thei'efor within one year after the debt be- came due, nor vet unless such director is sued therefor il ■• M- Ch. 197.] i:XTUA-IM{(»VI.\('|.\|, .MI\IN lie such enalty of ii^LM) for every day duriu}^' which default continues. KXTRA-l'KcniXCIAL COMI'AXIES. lO. Xo extra-provincial mining-, milling, reduction or development company havinj'' its head ottice else- where than within this Province, shall, either directly or indirectly, sell or otherwise disjiose of within this Pi'ON'ince any of its shares, stock, siock-cerliticates or other secui'ities by whatsoever name known, unless and until it has received from the Lieutenant-anv is (tne wliicli mav be licensed under this sec- fion, and upon the recommendation of the I'rovincia! Secretary, the Lieutenant-Governor in Council nuiy di- rect the issue of ji license u]»on such ms and condi- tions as to liim seem proi>er, and ' .\ay summarily revoke and annul such license for any cause that to him appears to be suflicient. The following,' Ufucriil couilitidns art" rciiiiircd to bo complied willi on tlic iiiU't of ill! cxtru-urovinciiil conuiiiiy iiiiplyiiif,' for license iintUr tlu> iirovisioiis of Sees. 10 iiiid 11 of Chap. lt)7, it. S. O. 1W»7: Till' application should -lie in the form of a petition signed liy tli • executive ullii'crs of the company, and under the company's seal. Th • signatures to lie duly veritied. The iielition should set out some- thiu!; (if tile history of tlie company, mil, apart from other docn mentary evidence tluit may lie reipiired, should show its powers, iis staiulin.i,', its real estate, proiierty and assets, and that it is carryiiii: on operations upiui a scale and in a mmner to command the con tidence cd' ihe pulilic. The iietition should eiiher include or lie acconi panied tiy a copy of a resolution authorizing the mal I'arliiments. respt'ctively, must be iirodue'ii with the application. A sinnliir observation will a|iply to a Coni pany im'orporated under the laws of any of the Provinces of tlb Donuniou of Canada, regard being hid to the proper oflicers in tli i behalf for th(> purposes of certification. If the application be on behalf of a comiiany incorporated iind.' the laws of Great lirit lin and Irelaml, the copy of the Memorandur Ch. 15)7. Cli.197.] LIABILITY FOU FALSE IIETUIINS. .*if)5 ovincisil is IM'ov .1' of the itt'd iiiul I assets, cjih' iuitl (' pul>li»'. >ower to lary aiui lu' itrciii- tlmt tl\f this scc- •rovinciiil I may «li- iid ooiuli- uunn.ii'ily [i that to mplii'd Willi :>nso luuli'i' jiUOll t>.V til' soiil. Th • lilt SUUll' itlicr (locMi powers, its ciU'ryiiii^ (1 till' COD hi' aeeoni iijj; of th'' l-;lt»'(l mill '1 iirtt'f. or "'• ;u--.'inally. and, if any, siihseipiently, tiled in the I>epartnient of the Seei'etary of St ite, or other proper olliet i- havin;; the custody of the papers, and duly veritieil hy such oHict'r. \\'her(' the applicant coiniiany has heen iiieorporated hy Deciara- tioii, it is reiinired to file a cojiy nf its I leelaration. etc., cerlilied liy the otHcer having custody of the ori^riiials. In additioi: to any other evidence of finincial ahility, tlic com- pany is re(piired to tile a eertilied copy of its stock hook as it stands upon the date of makiiif,' its applicntii)U. Every applic;int company is retpiind to show that it least ten per Centum of its nominal caiiital has lieen snhserihed. These are conditions of general application. Additional condi- tions may lie rc'itiii'ed, the nitiire of which can only be determined hy the iiarticnlar case. The ;mionnt of the fee payable for .a license m:iy be found on referring,' to the Table of Fees, (intc. LTAiiiLiTV von F.XLSK st.\tf:.m r':\TS. 12. (1) If any person in any retnrn. i-epoi-f, cet'tifi- laise ip- (•at<'. balanre-slieet, oi' oilier docnnient i-ecinired by or' for tlie jMirposes of tliis Act, wilfnlly nialces a statement false in any inaterial pai-ticnlar. he shall be liable on conviction on indictment to imprisonment for a term not oxceedin}'' six months, with or without hard labiMir. and on snmniary conviction to imj»risonment not exc<'ed- inp,' thiH'e months, with or without hard labour, and in either case to a tine of .^100 in lien of or in addition to such imprisonment as aforesaid. (2) A person charj>-ed with an olfence under this sec- tion may, if he thinks tit, tender himself to be examined on liis own behalf, and therenpon may j^ive evidence in the same nnmner and with the like effect and conse- (jnenoes as any other witness. Sec idso C'ttp. 101, sec. !)7. [As in llic liahUU]) of diirrlors and ullicrs fur iinlnir slalcnicnls in a prospeclus, advert isciiient or notice, sea Cap. 21 G.] ^1- i '■ 896 Incoi'iioni- tioii of <;r)iii]iiiiiioK fur con- stniotiiiii of WOlliS on iiiliiiii^' Iniiils. Rov. Stilt. <•. I'.il. ON'TAKK) MIN'INCi ( ( »MI>ANIi;s ACT. [Cll. I!)7 COMPAXIKS rou COXSTUL'CTIXG WoKKS (J\ M I M X(; I.AXDS. C; I'oworK of (■oininiiiicK. IJI. (1) Subject lo tlic piovisictiis of 77/'' Oiihir Co}vpa)iies Acl, llic Lieiilciiiini-dovci'iior in Council niiiy, l»y IcItciH ])ii(('nl undci- llic any llicrcbv created a body corpoi'ate and jtolitic for tlie jturpoHi' of ac(iuii'inj4'. boldinj;. const rucliiift'. niaintainiujr and re- ]>airinji roads, bvidji'es. inijirovemenls in waterways, and ollior means of c(Miiniunication and draina}::e woi'iower, for carrying out the objects of incor- poi'ation only: (a) To construct, nuiintain and keep in icjiair. roads, bridges, waterways, drainage works and other imi»rovements and means of communication, through, over, or adjacent to, or leading to or fi'om, mining lands; {b) To acquii-e by ]>urchase. lease, com-ession. license, exchange or other legal title, and liold lands and other ])ropertios necessary for the construction of such works, and from time to time to sell and dispose of all such lands as may be fonml to be unneces- sary or unsuitable for the pur[>oses of the company; {(■) To demand and receive from persons and cor- jtoratioiis for the use of such works, such fees and tolls as nuiv be fixed bv the com- » * pany, subject to approval by the Lieuten- ant-Governor in ('ouncil; (d) To build, acquire, own. charter. u:ivignte and use steam and other vessels; Cb. 15)7. LANDS. <>iil(iri-> cil luny, thci't'by lV])f»Hi' <»f and !■•'- ays. and )i'Us. ami adjaccin CIl. 11)7.] CONSTIMi I IN«; WoliKS (»N MlNINCi I.AXhS. ((') T<» ciilrr into any ai raiijifinciils fur sliarin;;' prcttits, uiiiuii (»r iiiW'i'fst. or to-opc'raliose of all • tnnn'ces- es of the and coi'- )rUs. such the com- I' Lieuten- [ipato and \n Act respecting" the Cli!iii,L;iii,n' of the Xuines oi" Incorporated Companies. TTER :\rA.7ESTV. hy and with the advice and consent of the Le;;islative Assend»ly of the l'rovinc(? of Ontario, enacts tis follows: — 1. "Where an incorporated company within tin* lep;is lative authority of the Le^iislatnre (d' this l'r(»vince. whether incorporated nndei' a special or <;em'ral Act. is desirous of chanjiinj; its name, the Lieutenant-Governor, ujion beinfi" satisfied that the c(»mpaiiy is in a solvent (ondition, that the chanjic (h'sired is not for any ini- l»roper pnritos(». and is not otherwise objectionable, may, hy Order in Coum-il, dian^e the minu' of the company to some other name set forth in the said Oi-dei'. 2. The Lieutenant-Oovernor iu Council nmy make repnlations respectinfi' the notice (if any) to be <>iven of the application for change of name under this Act. Applicn- linllS U> Lit llll'll- IMlt-CicVur- iior tn imnit's of Ui'Kuln- tioiis as IIOtiL'O •.\[)H ('MAX(ilN(i rilK NAMKS (»K (( »MI'ANIKS. [CIl. 21, incaKc 3. ]|, i-,\m> tlic |»r(>|»«>s('(l new iiiiiiir \h (•(».isi(l«'i'<'l)joL'Uc)ll- J ' . • abii'. jt* ||(. tliiiiks fit. clnin^c tin* nnint' of lln> conipnnv to Honu' otluT nnobJcrlionnMc nnnn* without rcipiirinK iiiiy liiitlu'i' notice to be uivcn. I, cimiiceto 4. The «'linn}:<' of nann- slnill he coiwlnsivclv «'stn1i- luiuiiin lisJM'd l»v tin' insert i<»n in Tlir Oiihirio (lir.cllc of a notiic llid'cof bv the I'l'ovinciiil Sccrrtiiry. ciiaiiyonot 5, Xo contrnct or ('nLM^onn'nt ontcrcd into bv oi- actidiiMor ^vith the conipnnv. iiixl no linbilitv incnricd bv it siiiill foiitraclH. ' be iitVcctcd by tlic clinnyo of nnnic; and all actions coin- nicnccd by or a}i:ainst the conijuiny prior to the clianjic of name may be pi'oceeded with ajiainst <»f by the com pany nnih'i- its former name. 'J'lic ii|ii>li<'iiti(m must be li.v the rnriii;il iictitinii nl" the fxociitivc cifHciTs (pf the coiiipnii.v, pisst'd midcr tlii' ciiiiiiiiiii.v's romiiion seal. iiildi'csscil tn tlic liii'ii'ciiiiiit « iovcriinr in ("iiiiiu'il, scltiii;; I'urtli llic I'iii'ts, jiikI statin^': 1. 'I'liiit llic (■()iiii»iiii,v is (ifsiroiis of fliiiii;.'iiiK its nami' from. lit. 'J. 'i'liat tiic ((impiiiiy is in a solvent (i.nilition; '.\. 'IMial tile ehanp- (lesii'etl is not Tor any inipropei" pni'puse mil is not otherwise ohject innalile: -1. 'I'hal the new mime is not that of any Known company iii- {•oi'porateil or niiineoi'iiorated, or of any p.'irtnership or individual, or any name under \\liieii mV known Imsiness is lieiii;; carried on, or so nearly reseinldiii;; the same as to deceive, and 'I'liat the com|p,iiiy h.is anthori/eil the imikin;,' of the applic; f >n. 'i'hese facts should In- verified by allidavit. Kvitlence of the solvency of the compiny must consist of a swDi'ii fOjiy of the last lialance sheet or other siitlicient statem-'nt (d" llic ■nffaiis of the company, in'epared by some responsible person ion versant with its business. The statement should, with reasonable detail, show the nature, charjicter ind value of the company's assets, jind the character of its li.abilities. It! more than a month or so has elapsed sine*' the preparation of the statement, the afTidivil verifying its contents must, if such be the case, show tliat the jtosi tioii of the company has not materially chinycd since the statement was prepared. Ch.21P til limy, piiiiy In I'in^ iiii.v \y csliili- ii notice (Ml. 'ilT).] CIIAN(ilN(J TIIK NAMIvS Ol' COMI'ANIK.S. The I'll' lo lif |iii:il liy a riiiii|iiui.v Inr iiii (M'llrr in Ciniriril < Ikiiiu'Iii;; its nil nil' is !«Uri ((/». I'dit.Ms imi ('iiAMJiNc, Till; N'ami: oi" a < 'o.mi'anv. rctiliciii fur (iuiiiv't' of niiint' I'lirin Nu. ;!S Allliliivil vcril'.N ill); niiiih' " |(» Alliiliivil Vfrir.\ iiij; sit'iiiitiii't's |u iHiiiimi " .">!• I'\ idfiicf 111' (•(iiii|nin,v's snlvciif.v " M Alllilavil vcrif.viiik' Miiiiiiic.' SIhtI " fJ [,SV'r lis III / iisii I'll nil' ( 'iiin jiii II II s. r. .''/.,', x. '^o 1 Hft!» lo 1>_V Ol- ' it sliiill ons coiii- (' cliiinj"!' the rolii (■ ("XlMMltivc umun seal. ;; I'drtll ill'' triiiii. 11I1'1«1SI' Mill iiiiliaii.v in- iiidividn.il. irrinl "11, Ihi' aiuiliiii- iif a swovii lit i)f llir iiTvim ••••'I rcasoiialilf ly's assets. iiontli or sii ii> aftidnit it till' piisi ■ statt'iiiciii CIIAPTKH MK;. IJKVISi;!) STATITKS {)V (►NTAIilO. 1S!»7. All Act rospecttiii^' the Iiial)ility of Directors. TTKIi MA.JKSTY. by iiiid wit It tiio iidvico :iiiws: — 1. Tliis Act limy be filed as " 77/r I )in'rliirs /w'(//'//(7// suort title. Arir 3. Til tiiis Aft. unless the conle.xl ollieiwise re- intciiuotu- 11(111. (Iiiires: — 1. " riltnie stilleiiieiit " sliiill include Jl coliceiilmenl " L'„irin3 or intentioiml non-disclosiire of a material fiicl known num.' lo tile director or i»romt»ler \vliitli miolil ifasonably in- tliience a ]»erstm in deteiniiniii^ whetlier to ii|>iily or iit»t It) apply for shares, debenture sttuk. annuities ttn lives, or other securities of the company for which aiiplicatiou is invitetl; 2. "Securities" sliall imdude bonds, debentures, iii-"secmi- v<'Stnient bonds; also i)olicies, ceitificate. or other in- struinenls of insurance, suretyship, or ffuarantee. or in- struments evidencinj; contracts in the narure tliereof; (a^ Vide Order in t'ouiieil dated 2,">ih November, lSf>f). !l • 11' -i 400 "(Vmi- imny.' LiAHii.rrv or uiiticcTOHs. [CIi. 2Uk " niiec- tOl'H.'' ■' Pmiiio- ter." K.\l)ui't. ' .\|)i)lioa- tioii of Act Miiliility tl)l- Stlltl!- nieiits in luospec- tus '?. '* Company " shall includo any joint stock or othci* private corporation ^vhicli issncs or is antlutrizcd (o issue shares, debenture stock, annuities on lives, or oilier securities as hereinbefore defined; 4. '* Directors " shall include the orticers. by what- ever name known, appointed to manage the att'airs of the company; 5. " Promoter " shall mean a promoter who was a ])arty to the preparation of the prospectus or notice, or of the portion thereof containing such untrue statement, but shall not include any person by reason of his acting in a professional capacity for persons engaged in pro- curing the formation of the company; f>. " Expert '' shall include any person whose x>rofes- sion gives authority to a statement made by him. Jl. This Act shall api>ly to all companii's where or by what authority soevv. incorporated, and in respect of Provincial companies shall be construed as one with the several Acts of Ontario i'lcorporating or providing for the incor[ioration of companies by letters patent (»r otherwise. 4. (1) Where a prospectus, advertisement, or any ])rinted or written document ;uiswering the purpose of a p7'osi)ectus. advertisement or notice invites pei'sons to subscribe or apply for shares, debenture stock, iinnullics on lives or other securities, by whatever name known or mention(>d, of a comi)any, every jxn'son who is a director of the company at the time of the issue of tlie pi'ospec- tus, advertisement or notice, and every person who, with his authority, is named in the prospectus, advertisement or notice as a director of the company, or as having agreed to become a director of the company either im- mediately or after an interval of time, and every i)ro- moter of the company, and every i>erson who has author- ized the issue of the prospectus, advertisement or notice, shall be liable to pay, to all j>ersons so subscribing oi- applying on the faith of such i>rospectus, advertisement [Ch. 2l(). or othcv )\\7A'i\ to or o1 \\vv l>y wliiit- irs of the ho was a iiolitM', «>i" ,t;it('inenl. his iictiu}- 'd in pro- )se profcs- iiii. Avhere or in respect s one Avitli pro VII \\m 1 fitent <»!• bt. or any irpose of a persons to annuities I' known or ii director |ie prospec- who, with lerti semen! as liavin^^ cither in\- I every l)ro- anthor- lias It or notice. in}; <>!• 'rtisenieni Ch, 2 10. J I'Oll .STAIE.MKNTS IS I'UOSi'ECTlJS. or notice, compensation for the loss or damafic they may Lave sustained by reason of any untrue stalenien' in the prospectus, jidvertisenient or notice, or in any report or memorandum a[>]iearing on the face thereof, or by refer- ence incorjjoiated therein or issut'd therewith, unless it is prov'd — (0) With respect to «'very sucli untrue statement not l>nrportinliall be liable to ])ay ((unpeiisation as aforesaid If it be juoved that lu' had no reasonable ;>round to believe that the person nuikln<>' the statement. I'cport or valuation , was competent to make it; and W.S.I) M. — 2(j 401 ST 402 LIAIJILITV OF DIIiECToUS. [Ch. ^Ki. ^ . ?!' ml!! , I state- ments in JUMSlU'CtllS lor niisint; fnrtluT cai'ital. Itiilenmity wliere uaiiii' of pei'sou liHsl been ini- jiropeily insjurttid. (r) With r('t*jH'(t to every sueli uiilnie stuteinciii l)ui'j)oi-tin{j: to be a statement made bv an official i)ei'son, or contained in what purjiorrs to be a co[)y of or extract from a pnl>lic olticinl document, that it was a correct and ffiir re- • presentation of sucli statement or copy of or extract from such document, or unless it is proved that, having consented to become a director of the company, he withdrew his consent be- fore the issue of the i»rosi»ectus, advertisement or no- tice, and that the ])rospectus. advertisement or notice was issued without his authority or consent; or ilia I the prosi)ectus, advertisement or notice was issued with- out his knowledge or consent, and that on becoming jiware of its issue he forthwith gave reasonal)le jmblii notice that it was so issued without his knowledjie or consent; or tliat after the issue of such prospectus, ail- vertisement or notice, and before allotment or issue of the shares, debenture-stock, annuities on lives or other securities thereunder, he, on becoming aware of any un- true statement therein, withdrew his consent therein, and caused reasonable jiublic notice of such withdrawal and of the reason therefor, to be given. (2) Where any company is desirous of obtaining further cai)ital by subscriptions for shares, bonds, de- bentures, debenture-stock or other securities, and for that purpose issues a prospectus, advertisement or no- tice, no director of such company shall be liable in re- spect of any statement therein, unless he authorized the issue of sudi prospectus, advertisement or notice, or adopted or ratified the same. S. Where any such prospectus, advertisement or no- tice as aforesaid contains the name of a person as a direc tor of a company, or as having agreed to become a direc- tor tliereof, and such person 1ms not consented to be- come a director, or has withdrawn his consent before tlie issue of such prospectus or notice, and has not author- ized or consented to the issue thereof, the directors of ■■ Ch.-21(). utti-uu'iiv ! by an o Hie ill 1 fail- I't' py of or ) bt'fOHK' ISOUt be- lt 01' no- )V noti*c ; or iliiit iumI witli- bei'oiuinp )le imblii ,vlodj:o ov ectus. ail- r issue of ; or other f any un- t tberi'to. itlulra\val obtainiuL: Is. (b- )on( and for rnt or no- bl o m re lori'/ed the Inotice. oi' Mit or no- ils a ilirce |u' a (lirer- k1 to be H'fore tht )t autb«»r Ch. 216.] COXTKUU'TIOX |-|!(»M CO-DIHECTOHS. the company (except any witliout whoso l^iiowb-iljic oi- consent the prospectus, advertisonient or notice was issued), and any other person who authorized the issue of such i)rosj)ectus. advertisement oi' notice shall be liable to indemnify the person named as a director of the <'onipany, or as having' ajireed to become a director thereof as aforesaid, ajiainst all damajies, costs, charges, and ex[)enses to Avhich he may be made liable by reason of his name havinj;- been inserted in the i>rospectns. advertisement or notice, or in defendin;^' himself a.uainst any action or le<;al proceedinjis br(»u^ht a;^ainst him in respect tliereof. O. I'lvei-y person who, by reason of his beinu a direr- tor, or named as a director or as having- agreed to be- come a direct(»r, or of his liavinj;- authorized the issue of the prosjiectus. advertisement oi' notice, has become liable to make any ])ayment under the ]U'ovisi(»ns !:. KEVISED STATITKS OF OXTAHIO. 1S07. An Act to prevent Fraiuliilent Statements l)y Companies and others. Irectors o HER :MA.1ESTY. by and with the advice and consent of the Lejiislative AsscMubly of the I'rovilice (d" Ontario, enacts as fi;NT .sr.v'i'KMii.s'Ts I'.v i (.mpanils. [CI I. •21" (.•OllllUlllK' cai>it(ii .It l)y any coijiuralioii. ;iss()tiiili<»ii or conntany or any olli- ctT, a^cnt; or cniitloyi'c of any such corpoiaiioii. iisso<'ia- lion oi- company. jmii'IpoiIs lo slate the suIisci-UhmI caiH- tal of the coi-poration. association or conijiany. llien the capital actnally and in <>(to(l faith snhscribed and n^ more shall lie so state(l; and any such corporation, asso- ciation, company, ottlcer. ajient or emjtloyee who causes lo be insertetfender. being any offi<-er. agent or employee as afore- said, shall be imprisoned with or without hard labour for a term not exceeding six months and not less than one month, and on a second or any subsequent convic- tion he may be imju-isoned with hard labour for a term not exceeding twelve months and not less than three months. (2) Any one may be ju'osecutor or comi)lainant un- der this Act, and one-half of any tine imjtosed by virtue of this Act shall, when received, belong to Her Majesty for the use of tlie Province, and the other half shall belong to the prosecutor or complainant. Ch.217 luv oHi- associa- imI caiti- hcii th"' aiul no »n. asso- () i-aust's iap«'r. or , be i)ul» 1. U'Wrr (tiil«'S. as tlliUl till' V and in contains poialiou, stamlin;: lul which J niislca*' isim'ss or jiation oi" ('(' of til'' bct'olf liavin^ M' liai)l»' lH»t h'SS iicnt tlu- as atorc- [■(1 hii»our CSS than it convic- oi- a torn I liau three inant un- bv vii'tui- V Majesty half shall CHAlTi:i{ 'iV-K liKVISi:]) STATITKS OF ONTAKIO. !s!)7 An Act respectiii,!:^ lictiii'ns rcquii'cd tVdiii Iiicoip rated ("oiiiiiaiiies. o- HEK MAJESTY, by and wiili ilic advir.. an. I .(.iismt of the Lcjiislativc Asscmlily of llic l*in\iiiii' of Ontario, enacts as follows: — 1. The word "Heturn" wlieic used in tins Act shall" licturn ■ include any list, statement or rovisi()iis of such Ad. unless llir action is bronfj;lit by the Crown, or by the A( torncy-C Icn- oral of Ontario snin<; on behalf of Ihc Crown. Limitation (if amount ol i)enalty. Hev. Stat. V. I'Jl, H. Til, lietnvns by ciiniimnii's wnii'hoMs- iiif,' crude lietrole\iiu. 3. The entire .'iniount of the i)enalty or ]>enalties to be recovered ajiiiinst a eoni]»any. or the directors <»i' ollicei's thereof, in respect of any defanlt or defaults in coniplyinji" with any of the i'e(|uirenients of section 71> ot the said Oiilnrin ('(niipaiiics Arl, or in coniplyinj;' with th(? requirements, in respect of the inakin«;- of returns. of any other Act up to the lime at which the action is brought, shall not in the whole exceed .1'l,(l(lO; and in case several actions are broujiht, either ajiainst the com- I»any or against its directors or oHicers, the Court or a dudge thereof may give sucii directi<>ns as may appear just, either for consolidating the actions or staying the later actions, or any of the actions. ui»on such terms as may be deemed fitting. 4.(1) Every incorporated company carrying on a business of warehousing ciaide petroleum in this Pio- vince shall, on or before the first day of February urpose ot answering transportation and warehouse re- cei]»ts, accepted orders, and certificates of crude petroleum. [h) The total (]uantity of crude ])etroleum in resjiecr of which the company as warehousemen or carriei's are liable to make delivery to other persons. [As io these 11 el UVUfi, see ahii Cup. Ill (-'<)■^ (2) The said summarv shall be in accordance will sub-sections ,"). (i and 7 of section 7!l of Tlie Oiilarin ( iitH- lU'V. Stat, c. I'Jl. panies tfV. and sub-sections S and J) of the said section shall apply to every such company and to the oHicer; thereof therein nanuHl. [Cli.21! ritinl in lU'SS tilt* IU'V-( 'it'll- <;:5 VICTORIA, CHAPTER '1:'k lallit's 1i> 'clors or 'fiuilts ill ion T!» ot inj;' with [ returns. iiftion is )\ antl in tlic coui- Oui't or a ly appt'iir ayinj;' tlif I terms as in^' on a this Pin- iniai'v of lii'h shall 1 actuall.v iirpose t»t house re tit-ates of in respef'T iseinen or V to othtM- ance wiiii hirin CnDh id seclitui he onitt'i> An Act to amend Thv Ontario Companies Act. AssritlriJ hi -iOfh Ajirii I'.xu'i. HEH ^FAJESTY. by and with the advice and eonsent of llie ].ej;islative Asseiiihly of the I'rovince (tf Ontario, enacts as follows: — 1. Snb-sectiou in) of si'clion Id of Tlir Oiihirin ('nm- nov.smu panics Ad is amended hy atldiii^- thei'eto the followinjr.Viiitiuiea. ' ])roviso: "And further provided that the name of a com- pany wliich has not made for three couse(*utive years the annual summai-y and statement of its affairs lu-e-Nnmoof • 111 1 • 1 ' 1 • ■ 11 • (It'liuiltint; scribed liy this Act. may be j^iveii in whole or in part toreference-stock or jiarts thereof, from time tt» time. }»ass by-laws pi'ovidinu; ftu' the jmifliase or actpiisition by the comitaiiy of sm^h stock or i»aits thereof with the consent of the lioltlers. and for the cancellation of the slock so purchased or a'-tpiircd. canpoiiu- and for the reduction /)/'• mhi acctu'diiifi to the amount pntiieuce ,. J 1 111,. . .1 ^'tOL'U. ot stock S(> cancelled of any rescrxf set apart, or r»M|uirt'd to be set apart, in r(^S]>ect of such preference-stock, but no such by-law shall be valitl or acted upon unless and until the same has been sanctioned bv a vote of at i * \ ''\ 40>S Sii)>p1i'- iiiciitary lotll'lH ))Ht01lt to (•oiidnii I'lmicllii- lioiis. CANcnLLATloN dl' I'KKI'KltKN* K STOCK. [Cli. 2.'{. l(';is( l\V(» lllilds ill Villllc of I lie slliirclioldcrs of (lie r(tni- piiiiv prcsciil ill ix'pson. or rciircsciiWMl li_v |iiv the Trovincial Secretarv in the (Idzetlr. llov. Stat, f. lill, s. '23; Gl V.c, Ht, ss. 2-1 ; tVJ ». Section 2;? of The Ontario ( 0)11 pan ic! Arl '.\> uiieiided l>y 1lio Act ]>assed in 1h(» sixty-first year of Her V. (-2), c. 11, ]\raiestv's reiun, chaph'i' 1!), and sections 19 and HO of ss. III. 'ill, .> . r I i-ei)L'aitHi. 111,. Act passed in the sixtv-seeond vear of Her Maiestv's roifi'u, chapter 11, are I'opealed. and tho following sec- tion is inserted in 71ic Coin panic .s' Arl in lieu thereof. L'se of word "Liii.itea" in sif,'iis on otlicfs. (1) AVlierever any oHice or iihic*? in wliicli business of tlie comjiany is carrii'd on is indicated by any si.mi. name or other means on the outside thereof as bein,i: a i)lace of business of the conii»any, the conijiany shall keep in a consjiicuous place on such outside, in letters easily legible, the name of the company, with tli(» word " Limited "' as the last Avord of. or as the first word aftev ch. 2:5. ('I..:J:}.1 i;sK {i\- iiii; \V()i!i» " i.iMi I i;i». 400 It' r<»lil- ,V. ill ii 11^ the ■n foii- is nl'icr s iifor*'- for lh<' inn llx' luce (lie IMoviii- (•li;ii-i'<'es not foini jiart in}i' piovisions (»f this section shall iiitiir a ]»enal(y not exce«'din^ ten dollars for each and every I'roviKp. o IVen ce Provided that after havinti been convicted of an olfence under this section the olVender u[ion a sui»- S('(iuent con\ iction for an olTence un«ler this section shall inenalty not exceeding- on<' hundred dollars. Nottoaii- (4) This section shall not ai>plv to anv conipanv ply wliDici ' 1 1 > . 1 . to'iiipaiiy not havinu' ••ain for its purpose or object where such has not >- >^ 11 .1 naiii foi- its ,.f>,„.,;,,,^. |,y j(j^ charter of incoritoratiou is declared to objuct. I ■ . I be exempt from the provisions thereof oi' to any com- jtany not having' j^'ain for its ]»ui'|M)se or object which, on ])i'oof thei-eof beinj;' shown to the Lieutenaut-Cover- nor in Council, is of, from and after the date to be set forth in the order of the Lieutenant-< iovernor in Coun cil in that behalf declared to be exempt. (5) The prosecution or proceedin- iou shall lis. I'oiiipiiiiy ore such •lanMl lt> \liy ('»»m- •t which. it-Govcr- to !><' scV in (Joun- vv a pcu- isioiis of hs al'ter aids. inciii'i'L'd ov OtllOl' )sei'vaiii-i' ISC' of tlic •e hereby shall not lich judii- so that in »urt in or uch order rii.-2;}.l n'.Ks OS ivi.iN. Section K." of I he siiid Aci is lirrchv amended hvU'v smt. . ' ' '■ i;M. H. , addiiij; thereto the f(dlowin;i snh-seclioii: iinninUii. (4) The conii»anv shall for the following services ikiv i '•<-^'>n lo tlie Provincial Secretary the f(»llowiii;j, fees upon ten- Kunu.etc. derinj*' or transinitlin;^ t(» liim any reiiiiii, l»y-l;n\ or other document re(|nired hy this Aci or hy any Act in- corpftrated herewith to he tiled with the i'l'ovincial Secretary and in the Schedule mentioned, niid no leiidei- oi' transmission <»f such return. Ity-law oi- other docn- meiit shall he deemed to lie ii due compliance with these provisions unless and until the presciihed fee for i«'cci\- inji' and fllin<; the same has been i»aid t(» and has been accepted by the rr?_' 00 2. Fylin• anv other bv-hiw or document .... 2 0(» Il>j ililiil! j w r llir l.<';iisl;il i\ (' Asscinlil v of the I'loviiicc (»!' OiUiM-io. ciiJicts )is lollows: — 1. In (his A(( (lie cxpicssioii '"Mxha I'roviiicial iVinitiim, ' ( "oi'|»(>riili<»ii "" niciuis it corpoi-in ion ci-cnhMl (tilicrwisc tliiin ]\y (»!' nndcv ilic initliniit v df jm Art <»!' Ilic Kc^-is- laliirc of Oinario. 2. Kxli'ii I'l'ovinciiii « orpornlions <»!' liic clusscs win.iKin iiKMillontMl lu liiis s(Mti(»n ai'f not vcnnircd n* Inkc onl no. ii()uiro ' lic'iist. i;xtiii I'ro- viiii'iiil cer IIIL'IIIUIIK of. (' ill'Olll- tioiis a licons" nndci' Iliis Ad. \iz.. coiporiilions d'calcd hy or niMlci- tlic antlioi'ily ol'— (Mass I. An Act of tlic Lc^isliitni-c of tlic ]i\\v I'l'o- vinco of rjtpci' Cnnadii. or l>y Koviil Cliai'lcr of the Oov- crnniont of that I'l-oviinc; Class II. An Art of tlic Lcjiislatni-c of the laic IM'o- vincc of Tanada, oi- by IJoyal Chavtcr u\' the (lovcrnniciit of that I'roviiicc, and caifyinji' on business in Ontario at the date of tlio comnicnccincnt of this Act; (Mass III. rorjioiations which have before the coni- niencenient of this Act received from the (lovernnient of Ontario a license to carry on bnsiness in Ontario, (tr which have been anthorized by Act of the Lejiislatnre of Ontario to carry on bnsiness in Ontario, jn'ovided that such license or Act is in force at the date of the coni- niencenient of this Act; C'li, 24.J idiii'uit \i IONS wiiH II liii.ii ii:i; i.|ii:\s|.;. nn Cljtss l\'. ( '(Upoiiltiiilis liiiW Of Iirli;il't<'l' licensed ui- '*"v- >>"'•. ' t'l', -.lit, Jl ,■> r»';'istt'i<'(| iiimIcI' I lit' |ii«>visiniis i>\ Tlir i')iil(irii) liisnriiKi' All or <»r Tlir Lniiii ('ur/n'riiliiiii^ .\'l. ("liiss \'. ( 'i»f|inr;ii ions linhl'- lo ii,i.\niiiii *>\ l;i.\i's iin|Hts(M| Iiv clniidei- s of iln- (Miiniio Sininlcs lur l>lt!i. inlilnlcil .1// .\rl In siijijjIniK n I Iln' nriiiin.< nj llir ('rmrii in Ihr I'l'iiriiiif iif ()iiliiri'\ ("Ijism \'I. < '(M|i(»iiii ions iioi im\in;^ ;iiiin lor iin_\ of ilifir oltjrcis. !{. I'lNlrn rro\int'i;il ( "oi-iMniii ions mI' iIm- cliisscscniiioni- nicntiiMMMl in lliis seriion nio ri'i|iiiri'(| lo injxr owl ;i win h iift-nsc innlcr tins Afi. \i/,.. ( or|ior;ii ions loilicr I nan liufus., Iliosc nicntionrd in scriion L'l ciTnloil hv oi' iiiidcr liir iinliioiilv of — ("liiss \'ll. An Acl of liio Ij'<'islnliiii' (»niini(Mi (d' Canada. and antiiorized to caiiy on Inisiness in ()ntaii(»; Class IX. C(n|»oiat ions not coniiii"; within any of the foi'ejioin;;' (dasses. \. A coi'iioiat ion eoniinji' within riass \'|[ or \'l II ui^^iits tu llcmiso shall, upon coinidviii't with the |>ro\isioiis of this Art wi.on aiul the rejinlat ions made liereiindei-. receive u license ^r viii. to caiTV on its business and exercise its poweis in Ontario. a. A corporalion coming' within «Iass IX nniy. upon uii^iits t„ coniplyinji' with the pi-ovisi(»ns of this Act and the re A».'t so to do has been j- ranted to it. and unless such license is in force; and no comjtany. liini. Itiitker. a^ent or other ]>erson shall, as the represenlatiN t; or aiient ol or actin«i' in any other capacity for any sut;h Extra I'r*'- vinrial ('ori»oration. carry on any of its business in On- tario unless and until such corporation has received such license and unless such license is in force. P oviso. I'rovided that takinji' oiders lor or buNiii"-' or sellinj; yoods, wares and merchandise by tr.ncllers or by cioviso. I'rovided also that the onus <»f j»roving that a cor lK)ration Inis no r<'sideut agent oi- representative and no office or ])lace of business in Ontario, or that it was at the date arts of its powers as may be (Mubraced in the license; subject liowever to the ju'ovisions of this Act. and to such linutatious and conditions as may l)e s])i'ci lied iu the license. ApplicH- ti.iii for ; ! i. '■Ji [Ch. -J 1. !<;■ within 1 Oiitiirit) nd(.'i' ill IN less siicli v\\ a;;ciit xtiH Tru- ss in Oii- it'ciivc'd or sclliiii; ir by cor- 'ss ill Ou- l)UsiiH'ss iiul ai»i>l\ any sucli L'C'UU'nt of hat a ror vc and im it was a I rryinii' on »n for an ^ed. ny prlilioil •iddrcssril tu tile LitMlt.'Il.Mllf- <.iu\criliir ill Culllirli. !iii(l siullrd l,y the cxcciuivc udiriTs .if til,. I'liiiiiniiiy. ;iii(l jiiissi'il iilhli'i- llii' coinii.-i iiy's (lUiiniMii sc.-il. 'I'liis lH'iiii,,ii must siiitf till' Tii;iicri,-il r.-id-. -iirh ,|s 1. 'I'lu- ll;llllc III' the I\ill-il(ini. I >.Mni|iiiiii, Smir. I'r.>\ilirr ,ir Mlhrr jurisilirtinn lIlliliT till' hlWS iif whiili 111,. ;il,l,|ir;ilil iMjluim liy WHS iiirdriiiii'atcil mill is wm'kiiiL:: -. Its ciii'|iiir;it(' iiiiiiii'; .">. 'l"hi' li.'itc Mini iii.'iiiiii'r iif its iiirur|M,r;iti,,|i: 4. 'Pile iilacc wluTi' its hi','iiliiili|.|. is sitiincil: .". Wlii'tluT its I'xistiii,.,. is limit, .|| l,y Statin,, or i.tlicrwisc, and if so, th,. pcrio.l ,,r its I'xisti.iii.,. yi't I,, .'lapse, ami wiu'tli.T its cxist- cncc may lie lawfully cxti'iiilcil; (J. WliotlRT it is a valid ami sul.sistinj.' cDi-pm-atioii; 41 G ItKOl'LATIONS Foli OliTAINlNfi I.ICENSKS. [Cll. 24, Wlicilicr it liiis iiiiwcr. imiIht cxprcssril (ir iinplifil. Id carr; (III its luisiiicss in Oiitiirin; S, ^\'il(■tll(•^ it liiis piiw ooiidititiiis, if any. uiidci' wliicli suili i mhI is to lie In ■!• Ill iinlil lam! in <>ntariii, anil, if so, ti !t. Its antliiiri/f(l pdwcrs set onl in t'nil: 1(1. Tlif piiwcrs whicli it ili'sircs if, rxi •isc in thi' 1 ri,\-ini'f 111' Ontario: 11. 'I'll!' nniiuiit n|' its anilmri/.ril i-.iiiiia! mil w li'iluT sm-li capiMi IS lllVUlfll 12. 'I' into sinircs. am I. if annnini (if its sii liscriliod taiiitai 1.".. 'i'iic aiiKiunt (if its inid-np (.-iiiit li: M. Wiicllii'r il was caiTviii i h i-iiicss in (Ihtariu lUi tlir U if .Iiilv. 1!l!iii. and, if wiiat extent, i:.. lt^ II. Ill \ .laniier, al wiiat [iiai-es a nd i( liead (itlice, IIP (iliicr cliicl' pla ■(■ (if liusine^s in ( )niari( Id. The name, ilescri|ii imi and place of re^idein e of lis eliiei' aucnl, (11- repi-eseiilalive in Onlario: 17. That the ((iiniian.v has anlhorized the niakiiii:' of the ap[)li(;a- lioii and has diil.v app(iiiile(l an ationie.v: In. 'l"he niine, description and place of residence of sucli altonuy, and lit. Such liiriher and ollici' informal imi as the rroviiicial Secre- tary may re(|nire. The eontenis of, tile siiiiiatnres to, and the impression of the seal upon the petition must lie veritieil. If the application he on behalf of a compuiy ineoip^irated under tile lawj; of liie I )oiiiiiii(iii of Canada, a copy of its charier, or of ilic Acl iiicorporaiintr it, certilied hy the I»eputy lleiiisi rar-( Jencrai, or hy tile Clerk of the Parliaments, respectively, must l>" iirodiiceil with tlie aiiplicitiiin. \ similar oliservat ion will apii!y to a ■ompaiiy in- e(irporale(l under the laws of any of the I'rininces of the I>omiiiion of Canada, rej^ard lieiiii: had to the pr(.iper ollicers in that behalf for llie pui'iioses of certilicalion. 1 1' llie applicalioii be oii bclialf of .a compiny incorporated under the laws of (ireat liritain and Ireland, the coit.v of the Memorandum ami Arliclcs of Associtition prodnetMl miHi be cerliticd to lie a true copy by the Uey:istrar of .loint Sloe'.; Companies al London, I'Miii liur;:li or I)iibliii, is the ease may be. If the apiilicatioii be on behalf of a (dmiiaii.x' iiicoiiiiirate(l umlei' the laws of one of the T'uileil States of Aniei'ica. the evidence of incorporation must consist of a duly certitied copy of the papers oriirinally, and, if any, subse(pieiitly, filed in the r>epartment of tln^ Secret iry of State, or other proper oliicer liaviu;: the custody (jf the papers, and duly veritied by such oliicer. .\ person, resident in the I'rovince of Ontario or a eninpany haviiiir its head otIiei> in the rrovince, must be apiiointed by tli ■ appl'eaiit I'oiiiiiany •" '"' '•'-' atioruey and reiiresentative in Ontario. 1 Ch. 24.] I'KOOF IN Ari'I.l<'.VTK).V Full LICFNSLS. 417 and :i piiwiT (It' jitttii'iicy duly fxciutcd. I'm' the imriiusc, under tUo si'iil id" till- itiniininy, niusi If iriiusiuiilt'd wiili tlic ii;iiicr>. Tlu' lictwcr itscdl' nniy cdufain any iirovisiiui nor incdi-.sisicnr with the duties 111! the attiirney ti> he exereised undiT the hiws III" the Triiv- inei', hut it must liiehKh- wurds expres.^ly aui horizin.u the alturuey "to act as such, and ti> sue and lie sued, pie id or he iniiileaded in any Court in Ontario, and irenei'.illy on hehalt' ot" the enniiiany and ■within Ontario to aceeiit service of iiro( ess, anil to reeeive all hnvlul notices, and, for the purposes of the conipany. lo do ;ill acts and to execute ail deeds and ether instrunienls rel.-itini; lo the matters within the scope of the jiower of alloiiiey." 'Die power must also pro\iile that until due Lawful notice of tiie appoinliiient of aiiotlier and sulisequent attorney has heeii u'iven to and accepted hy the I'rovincial Secret ir\'. service of process, or of paiicrs and notices upon the person or company mentioned in the original or other [lower last liled with the I'rov'iicial Secietiiry shall he acceiued hy the apiilicaiit (-onipany as sullicieiit service in the pri'iniscs. The Aitorney-( M'tieraTs I lep.artnuMil has ruled tli.-ii the ap- pointment ot a. firm of sod<-itors as alininey, will not comply wiih tins pi'ovision. The aiipoininienl must he of a lur^un. resilient in the I'i'ovince of Ontario or an incoiiiorattd ajiiiinini/ havini,' its head ollice in the l'rovin< c. I O. rpoii tlio uppllcatioii for a license the npjdii ant shall establish to the satisfaction of liie I'l'ovim-ial Sec- retary, or snch other oillicer as may lie chaijicd hy him to rejiort thereon, that the provisions of this Aci iiml the re<>nlations made hereuniler have been coiiii>liellAT10X,S. [Cli. 24. Ucaliiii; wiUi leiil ustatc. Notice of snuitiiiH liceuse. Ketunis to be inado by li- ct'usefes. f)r if injulc oulsitU' of Oiitiii'io may be iiiiiorated undei' Tlic Oiihtrin Conipaiiics Act with power to cari-y on the business and exercise the jtowers embraced in the license. 11. Notice of the jj^rantinj^' of a license under this Act shall be jiiven by the IM'ovincial Secretary in the O.NTAKio (Iazktth, and a copy of such (Jazkttk contain- inji' such notice shall Ik* prima facie evidence, in all pro- ceedinjis by and against the cor])oration and otherwise under this Act or otherwise, of the jirantin^" of tlie license and of the terms thereof mentioned in tlie notice; and a copy of the license certilied by the I'rovincial Secretary or Assistant Provincial Secretary shall Ite suflicient evidence of the license before all courts and tribunals. 12. A. cori)oration receivinj'' a license under this Act shall, on or before the eighth day of February in every year durinj; the continuance of the license, make and transmit to the Provincial Secretary a statement under oath and according to a form approved of by the Lieutenant-tiovernor in Council mav at anv time reonin; similar to that required under section 79 of The Ontario Companies Act, or so much thereof or such additional information as may be prescribed in such form, and the Lieutenant-Governor in Council may at any time require the corporation to supply such further and other in- formation as shall seem to bim to be reasonable and proper. h. -2+. Cll. 24.] CAHIIYINC (tN I'.USINKSS WriHOUl' LICENSE. 410 l!njl.^- V this HIS <»f S ONVll iiistru- crwisc hoiH'iu 1(1 sub- il' such Onhir'ni 'ss aiitl lev this in thr •oiilaiii- iill i>i<' hei'wi^*' of the notifi'; Hi If ii coi-noi-iitioii iccciviiij' ji license un iitur llfflllllt cf liceiisep. N'otice. Act makes default in oltseivin;i' or c(>niplyin«;' with the liniitalions ami comlilioiis of sucli license or the provi- sions of section 12 of this Act. or the re<;ulalions re- spect in<; the appointment and continuance of a reju-o- scntative in Ontario, the Lieutenant < loveiior in Council may suspend or revoke such license in wliole or in part, ami may renutve such suspension or caiu-ei such revo- cation and restcne sucli license. Notice of sucli suspensictn. I'evocation. removal or res(<>ra1ion shall be jiiven by the IM-ovincial Secictary in the Oxtario ( J.\zi:ttk. 14. If any Kxtra Trovimial Corporation cominjr i'<'miit.v fc-i- (•iirr\ ii]^;oii within Class A'I[ or \'!II or IX shall conlrarv to tlieimsiiuss uitlicnit ii provisions of section <» hereof, carry on in Ontario anyiitLn^L' l»art of its business, such corporation shall im-ur a pen- alty of fifty dollars for every day upon which it so car- ries on business; and so lon^- as it remains unlicensed innler this Act it shall not be ca]»able of maintaining any action, suit or other pr(»ceedinu in any Court in Ontario in respect of any contract inaany, firm, broker, a';ent or other jierson shall incni' a penalty of twenty dollars for every day upon which it, he or thov so carrv on such business. ill ' ,1 i -^ i 1 ', ' ' " |1! 420 Power to remit iiuii- n I ties ur costs. EXTUA-l'KOVlNCIAL COUl'OIJATloNS. [Ch. 24. reimlties, lidw recov- erable. Fees on li- censes and returns. Proviso Proviso H». The Licutcnant-CJovi'iiuu' in ("ouucil ninv Avhen or aflei' jii'imtiny a license remit in whole or in part any iienally iiu-urred nnilei- this Act by the corporation rect'iviny the license or by any represenlative .or aj;ent thereof, and niav also remit in whole or i>art the costs . c I of any action or ])roceedinj; commenced for the recovery of any such penalty, and thereupon the whole or sucii part of the costs, as the case may be, shall not be re- coverable. 17. The jienalties imi>osed by this Act shall bo re- coverable only l»y action at the suit of or brouj;ht with the written consent of the Attorney General of Ontario, and any action oi' ])roceedinj; to recover any such penalty shall be ('(unmenced within six months after the lia- bility for stich penalty has been incurred, and not after- wards. IS. F(U' a license to a corjioration coming? within Class Yll or VIII, such corporation shall pay to Her ^lajesty, for the public uses of Ontario, the fee men- tioned in schedule A liereto, and for a license to a cor- poration comiufi" within Class IX, such corporation shall }>ay to Her Majesty, for the public uses of Ontario, the fee mentioned in the first i>art of schedule J^ hereto, and no license shall be issued until the fee therefor is paid. Provided that with respect to a company carryinjr on business in Ontario when this Act is passed, and carrying? on also an established business outside of On- tario, the Lieutenant-Governor in Council nniy reduce the fee payable for its license to such sum as he may think just, havinir regard to the nature and importance of its business in Ontario and the amount of capital used therein. Provided also that with respect to a company not carrying; on business in Ontario when this Act is passed, but carryin}? on outside of Ontario an established busi- ness, when applying for a license under this Act, the Cli. 24.] i'i:i;s I'AY.MU.i: ON I'vi.in(; statement. i'll liiculoiiiint-Ciovt'rnoi' in ('(tmicil nuiy reduce tlic Ice i»i\y- jiblc for Hiwh license 1o such sum as lie may think .insf. liavinff refj^ard to the nature and importance of (he busi- ness ])ro])osed to be caii'ied on in Ontario and the amount of ca])ital proposed to be used therein, but in any case under eitluM' of these provisctes the fees shall not be less than the fees set out in the second ])art f>r the said schedule IJ. A eom]»any seekino; a reduction under this section shall ^ivo to the Provincial Secretary such statements and information respecting its business and financial position as he may call for. anr in whole or in piirl. The ii|i|>li(';iliiiii llicrcfdi' imisl lie liy I'oriiinl iiclilicpii si;.'iicil liy llic fxcciilivc (iillccn ll i<> ciiiniMii.v iiiid pgisscd iiiiilt'r its ('oiiiiiiuii sfiil. This iM'tilinii imist scl lorlli fully all tin- liicts inalfritil in tlii' lii-finiscs, iiiid show (1) tlitil till' cimipiiiiy lias iiilicrciil imwcr In a aixl Imld lands in Ontarin, and (lii that the cnniiiany lias dnly antliiirizcd the maUinir roper shall be published by him in the Ox'iwKio (J.\/i:iri:. and in the C.wada (iA/.ktti:, and in the orticial jia/.ette or other official publication of each Province ()f Canada, for such time as to him may seem best. '1 Repeal of Ki!V. Stilt. f.iia, s. 107 22. This Act shall commence and take effect on and after the first day of .Inly, A.D. 1!MM», and on and after that day section U)" of VV/c Onhtrio Coinpa)ii('s Act sluill be and the same is hereby rejx'ah'd. SCITEniLE A. Fees for Lioexpep to Corpou.vticins comino within Class VII. OR VIII. If till' ('.".jiital sfock of the company docs not oxcood flip sniii of one luindrcd tlionsand dollars, the fee to bo twenty-live d(dlars. If flic capital stock f>f flu' company exceeds the said snm of one huudred thousand dollars, the fee to lie fifty dollars. Ch. 24.] FKKS I'oll IJCKN.sKS. 42;} SClIKmi-K 15. I'Ki:.-^ I'^n LirK.N-SKS TM C.'KIM.K.VTIu.Ns .■,,.M,N,i WITIII.V ( '[.A.^.-^ IX. (I'ir.s/ /iiirl.) Slll.jr..| tu (|„. pn.visi,,,. il, scrlioi, IS ih,- frrs p,., VM hie si,;, 11 1,.. ""' ^■';'"' ■''' "'•' '■'•"^ ""•^^' ''■•'•^• = '''' " '1„. i, ,.pn,,„i.,„ ,„■ ,, ,,„„. I''ii>.v h,v l,.tl..rs p;,i,.„i „,„|,.,. '/•/„■ Oiiiarh, r„„ii,nvir. Art, viz.: - NVIi.n tlu. i.,'.,p„s,.,l ,,,pil,Ml „r il„. i li,.,,„( ,. ,.,|IV i. SKMMKt ur li'ss. tile Ice ((• III' ,$1(M». Wll.I. il is „,niv ll,,i„ ,<;i.».(NHP. 1,„| anosi „„, ,.x,. ] .SIOOdOK |]„, ^"■" '" '"' •■ ' ""' ■'*'' '■"■• "V-'-.v $l..»n<» or lTa..|io,.al pnrt ih..ro,'.r in c.Mvss ui- s-i(»,no(». W1.,.M it is uv.-,- .>«l(t(MMI(., iMlt ,l,M.s nut ,..v, 1 .>^1.(„„M.IMI fl,.. •"'• in 1... SKKl ,n,.l .S-J...... f.„- ..v.T.v $l.i.(.()0 „,. iVa.iiuM.l ,k„m ih.T • WlMM. il is $i.nn.M)(i(,. ,i„. ,•„,. ,„ |„. s.-jsr, ;„„i .s2..-(i r,.,. ,.v,.,y irllMJUO ..I- f,'acti„„;,l „„,., ,1,,. ,,.,.!• i„ ,.x,,.ss or Sl.ddMDUK. (Sfcoiiil I'lirl.) Tf n... .apital stoH< ..f il„. ,.,„„p,,„,v s ,„„ ,.x,. ] ,|,.. s„n, „r -""• In.iMl.v,l tl,u„san,| ,lnlla.-s. tl„. f,.,. to 1,,. tifty dolla.-s. ^1' tile c'lpital sidck of tlio coiapaiiy cm- Is tlio said snm of '""• '"""'■•'""Iiousan.l dollars, th.. IV,. to h,. o,,.. h,„„l,v,l\lollnr Ml fi I K li.': liji li « liil DOMINION LEGISLATION. InfoniiiUioii i'«'S]»(*c(ii)j; llic incoriiorntion of .loiiii Stock ('(UiipJinics by Irtlci'S itiilcnt uiulci' llic ]>rovisi(>iis of " TIm' Coinpiinics Act," Jtcviscd Siatiitcs of raiiiidii. isst;, ('liaptci' 11!>, itrcpiU'tMl foi* the use and j^nid- anct* of iiitt'iidiuj;,' ai)i»licaiits. Lktthus 1*.\ti:\t. The Govci'iior in Council may, by letters ]»aanv, incori)orated or unin<'orporated, or any name liable to be confounded therewith, or otherwise on juiblic grounds objectionable. NOTICK iir APri.K'AIIoN' I'oK I.I'lTF.ItS I'ATKNT. 425 'I'llc I'lllllt' of il ruliilnill.V >lliillli|, It-- far il- it i- |i.issililr, iliilicllc its tilijcct. 'I'lic iin-tix " Tlic " Mini llif wni'il '■ < 'iiiiiii.iiiy " or miiiic tMluivjilcllt i'|i(irjilt'(l uiiilcr ilii^ Act. I'lif wniil " Limiicd "' niii-^l liUrwisc li*> iiililcd to tilt' iM'uiiiivi'd iiiiiiic. (Mil iiiiil \vi'll'i'si,'ililislii'il lii'iiis iiiiiy hv iiicDrporatiMl iindrr tlu' liriii iiaiiu' williiMii the in'clix " 'I'lir." II. The jMiiposcs williin the iniivicw ol llic Ad I'mi* wliicli its iii((>r|MM'jili()ii is simohi. <«l Iiilfiiihiij,' .Mpidicaiils >li(Milcl liiai' in iniinl lli.it llir staliito pi'iiviilt's I'lir llir ai'i|Misitiiiii iiihI liolilini: li\ ruiniiaiiii'- iiii-ni'iiiiialcil iindtT this Act ot' all i)i'ii|ii'i-t.v real ami pcrsnual nvinisitc I'nr the jiuriioscs of llic ( iiiii|i,iii_v. 'IMicro is im nlijiil I lu'itl'iin' in asUiim idr facilities !i!ri-i(l.v atfunlcd liy tli'^ Act. ib) 'Vln' intention of the Act is to liniii the powers of ii coiii- pany to the due larfyiiiK out id' Inn one oliji'ci and the sifictly lU'ccssiiry iidjiincts thet'eto, ind the praciice of the dep.irlinent is to so restrict tliein. It is iisele-^s. thei'td'ore. foi' iiuendiii;.' applicants to enciiinlicr their petition with the recital of a imdliiiliciiy of powci's which cannot he ^.'ranted. (c) 111 the ciiarter ^rranted to leleuraph and lelcplninc cnnipanies the fidlowiii;; provisoes are added to the iiowers ;.'i\('ii to these coin- panics, ,'iiid are incori»orated in their charters. These should, there- fore, b(> cndKulied in the iJeiiiioii for incoi'poration, thoiiuh imt neces- sarily inserted in the notice. J'rovided that iiothii'LT herein contained shall he eoiistriiod to in. Icrfere with any iirivate ri^dit or to confi'i' on the s;iid coini>aiiy the riirht of Imildini; hrid^jes. piers, or works ci\-,.r any uavij-'alde river in Canada, witliont tiie consent of the fiovernor in (/i>iiiicil, or c.f erect- in>r jiosts or placinj; their line of tele^'raiili (or telephonesi upon the line of any railway, withotil the consent of the ai;'es or despatches shall alwiys he transmitted in preferi'iice to any other iiic-.^.ii;e or des|iatcli. if rerinired by iiny person connected with the idininisl i alion cd' jii-^tice or any person thereto anthorized by my ^linistiT of (".niaihi. ((/) If it is not specially stated in ilie piirpsises for which incor- poration is sonjilit that the oiierittions of the company are to be carried on thronjrliont the Dominion of Canada, that f.act sliould be set ont in a supplementary piraj;raph to be added to such i)nrposo.s. III. The jdace Avithiu tlio Doiiiiiiion of Caiuulii which is to bo its chief jtlace of business. I !l I ■\ ! B m m w MM 420 Do.MINluN l,i;(.|.s|,AllH.\. Tin- .'iImiVc is till' l;illL'Uill.'c 'i( lllc stilMlIf, rnli*i'(|lltlllly nIli- |ill|fi' only ran 1m- ikiiikiI in \\\r ili.irli r ,is tjn' ( liicr iilaic nt' liiisincss. I\'. 'I'lit' |»io|>((S('«l ;iiiiumil i>\' its rii|iii;il stock, wilit h ill riisc of ii loiill colllltillix , sliilll not l)c Ifss lllilll oiii- liiiiMli'*'«i ilioiisiiiHl CgiKHl.dtM'i (lolliiis. v. Tin- iiiiiiilM'r ot sliiircs into wliidi tin- rii|tit;il is iiit(>n[iviioin must Im> resident in <';imidii. K.'icli tlin-ctdr must !»• a siiarciniliiiT in tin' cniniiany, ami own stock alisulnlfly in iiis uwn rii:!ii. 'i'lir: ri:rrn<)\. 1. At iiny time not more ihiin one montii nftei- tlie last ]>nhliciili(»n of such notice in the Ciniinhi (I'l-jlh' tiie ai»|»lic;ints nmy i»etiti(»n the (iovenior < Jeneriil. thrctiiiili llie Secretnry of State of Ciinadii, for the issue of siicii loiters patent. (Vi) The iKTxins wini petition nuisi lie tlic sann- pcrsuns wlioso iianu's a|i|ic!ii' in the Cni. uln dazdtf ami must In- sliaicin'lilcrs in the in'oixisi'd cniiipany. i/j| Oiu'-iiall' of the propuscil capital sinck must ho suliscrilic(l (ov ami ten iut d-nt. in cash [laitl in thci'con liy tliosi- whose names are set (Mit ill tlie mitic(> in the CtiiK.ila UuKltv ainl in the petition, or liy Hoiiii' tif them. Stock sniisciil" 1 lor liy persons who have not joined in the notice ami petitioi -Uall rc' o<;iiiy.eil. (el The peli facts set fort! curi'i'siKiiiil in every pariieula" witli !he notii'c in • Cinnirlii (liirtllr ami! sliouM contain ilie foil' - aiMitioiuil ii il 111. . inalion, that is to sav TIr* amount of sImIv taken h\ eadi of tlie petitioners res|KH'tivoI y ; the ann.iint i>aid in thereon by eacli appli- cant, and how it is held for the comp: ly, and wlu'ther *Hy (i.'> ^'ieto^ia. c. 4tl. which see /iosf, directors may make by-laws creating prefcrenco stock. I'KMTION r dcposil rccci|(l for siidi anioiinl s<» dcposilcd. This re- ceipt sliiMild be accompanied liv a drali for the anioiint so de|iosiled payalde to the cfedit of the Ueceiver- ( Jelieial. At any iinie aftei- the si^^nin;: of letters patent in- corpoial in^' the ap|ilicaiils as a coiiipany. the said a^- mi-ejiate, s»t paid in to the credit (d' the l\ecei\('r-< ieneral. may he reiiifiied to and for the s(de use of the coni- jtany. oi- in case of failure to incor|»oiate. to llie ajipli- caiits who have paid in or contrilnited to Ihe same, iindei* rejiiilations from time to time made I»y llie (iovernoi' in ('(unicil. These icj^iilal ions ]ii(i\ ide that when a cliartcr has heen .manted in- refused the l{ecei\cr< Ieneral shall niMMi Ihe reijiiest of. and throiiiih the Stcrctary of i^tale, refund to the coiiijtany Ihe anioiinl de]i(>sited in connec- tion \vitli its apitlication. In case the object of the company is one reiiniiMuj^ that it should own real estate, any it(»rtioii not exceedinj; one-half of snch aji^i-e^ate may be taken as jiaid in, if it is hdiiii p'dr invested in real estate suitable to such object, and such real estate is. by a valid and siifiicient 428 DOMINION LEGISLATION. rcjfish'i'od (Iced, diily lield h\ two or more trustecH for Ili(? <'oiu])any, and the applicants shall establish the fact, by oath, aHlrination or doclaration. that sut-h loal estate is of Ihe reipiired value over and above all eneunibranees thereon. . Evidence must be i)rodnced showing;' the value of the real estate Avhich it is proposed to transfer to the com- pany. The petition may ask for the embodyinji' in the let- ters i)atent of any provision which under the Act iniylit be made by by-law of the comi)any incoipoi'ated; and such i)rovision so embodied shall no), unless provision to the contrary be made in the letters ]»alent, be sultject to rejK'al or alteration by by-law. The petition must be sijiued by each of the a]»i»li- cants in pei'son. and in ])resence of a witness. If, how- ever, this is found impracticable in any case the aj*- jdicant may sign by an attorney, b)it the oriiiinal power of attorney, or a duly authenticated or notai'ial c(»py ther<'of, must be produced. Each signature should be veritied by an allidavit oi' statutory declaration made by the witness thereof. Proof Ki-.nriKi:!) nv Skctiox (5 of tiii-: Act. (a) An allidavit (u- statutory declaration establish- ing the sulllici(Micy of the ])etition and the truth and sntliciency of the facts therein stated, also that the l>roposorated c»»mi»any. (?>) An aflidavit or statutory declaration ]»r<»ving tli<' publication in the Vinnuhi (I'l'.rllc of the notice rcMpiired by section li- If, how- the ai»- il p(AV('r ial eoi>\ lould be made by CT. stablisb- nth and thai the ny other vinji' the re(| aired the sev- • of sncli 'yin<;' the ruth and ind with FEKS L'Nl)i;ii DoMlMOX AC I'. 429 resi)eet to the proposed corporate nann-. niav be n.ade by an aHldavit or allirmation, or siatutorv declaration of any of the p<'fitioners or their attoriicv or a-ent. who slionld be a resid.-nt of the Dominion of ("anaihi. Fkks. Xo step shall be taken in any (h'i.artment of the Government towards the issue of any 1<. iters patent, until after the amount of all fees theretoi- shall have- been duly ])aid. The folh.wino- is rlie schedule of b-.s pavablc m„h'r section S-t of the Act:— 1. When the jiroposed capital is fl.OOO.dOo or upwai'ds ^~^^^ 2. When the proj)osed capital stock of the ('(Mupany is r.OO.dOP or upwards and less than -i^l.OdP.dOO ;>(,q ."5. When the ])rop(.sed capital stock of the Conii.any is .^L'Od.dOd ,„• upwards and less than .1. When the ]u-()posed capital sli.ck of tlic Company is !i!!4h'mentary bcticis Pjilciit, other than those lor increase of capital slo.k. the fee is to be one-half of that char-ed on the oiioi„i,l letters patent, and if such applicalion bu- suj.plemeniarv let- ters imtent be made by a c.unpitny incc.rporated durin- the currency of the tariff of fees esiablisln-d bv Or.h'r in Council .d" th,- i»-nd O.tober, IS77, the fee 'pi'vable thereon shall b,. one-half of that charged for <»riui„al letters patent of the same class issued subsecpienth- to w ' I 17 :r-i' 430 DOMINION LEGLSLATION. the '22i\{\ of ^fiiy, 1S07. "When an increase of capi- lal slock is a.p]»li((l lor, tlie fee Tiicrcoii shall be bascil uj)«)n tlic actual iiicicasc of the capital stock, and llu- fee jtayaliN' shall lie the same as is payable ui)on letters patent lor the incoriioration (»f a conij)any whose capital stock is of the same amount as such increase." All fees must be paid in cash or l>y an accepted <'he(iue made payable to the oi-der of the HoiuMirable the Secietary of State, and should be transmitted to him by re<;istered letter. Sri'i'LKMllXTAKV LllTTllKS I'ATEXT. Supjdeinentary letters patent may be granted to a company for: — 1. Changing the corjiorate name of company. '2. Obtaining of further powers. .*J. Increasing the capital stock. 4. Decreasing the cai)ital stock. 5. Subdividing the existing shares. TO ADVEIITISKUS IX TIIK GAZETTE. I'ai'tu's sending iidvcnisonionts to lie insortiMl in ihr Vaiiada 6'nc€'//t' will plciise obsorvt' tho following nik's: 1st. Adilrt'ss "The Canidii (lazetti', Ottawa, Canada." 12nd. Indiiato the uunibor of insertions rcMiuired. 3rd. Inv.iriably remit the fees for su< h advertisements, togetl^T with the priee of one (hnvttc, as lielow. Otherwise they \\ill not he inserted. The rates are 10 eents for the tirst insertion, and five cents for eaeh suliseiiuent insertion per line of nine words, each figure counting as oiu' word. No advertisement is inserted for a less charge than one dollar. B.v settled or understood pracfiee as prescribed by law. the rules of Parliament or decisions of the Department of Justiei'. notices receive tlie following insertions:— Notices of applications for Letters Patent— fl insertions. Notice's of dividends and meetings of lianks and insurance C(uu- pnnit's — 1 calendar month, or .") insertions. S. E. Dawson, Queen's Printer and Controller of Stationery. Department of Puldic Printiiig snd Stationery, Ottawa, November, li?01. .a i'Al'IillS UHil'lUKD WIILN MAKINi; AI'I'LK 'ATloX. 4;u bast'tl id llu' U'tUTS •ayital •ccptcd Mirabh' to hiiu ' F(tU.MS WHICH SIKHI.J" HH FIK- MSllKl) WIIKN MAKIMJ Al I'LICATK >N VOTi. LHTTKUS I'ATKNT OF INCOUFOUATION OK SFIM'I.FM HN'rAKV LFlTKltS I'ATFNr AM» WHIFH MAY HK AOAl'TKO FROM TllOSK AI.UKAOY OIVFN FMUOK TllH 11KA1»- INc; •• ONTARIO LF<;iSl.ATION.- A. LFTTFUS I'ATKNT OF FN( 'OKFOKATloN. 1. Nnlict' ill (hmtlr lit' intclllifill to !l|i|il.v. Sec li;i!,'f -C'.'J. Mliilavit uf lifcliirMlinii \ci i I'viiiir iiisri 1 inn i;i (in :i ll< "■(•r liiliii' -l.i.t. I'ctitiiili I'lif ilK iiiiiiililt inn. Sec -i: '1. AtHiliivit or (ii'il iraiinii vciilyinu iriilii nl' I'mcK set nu\ in petition. Sec li;l,i:«' l.')~». r«. l'>Mnk r<'i(i]ii tni- ilfimsit piiid in. i';il't iin < Jiivcfnincnt iiccuuiit. I'.. SFIMM-F.MFN'iARY TJITTKUS I'ATKNT. 1. ("iianc;k 111" ("iii{i'(K.vTi; Namk. 1. I'cliliiin in|i;iiiy f'>y . N'critied copy of notice ciilliiii; s|iecial or i-'eneral iiieetiiij;. 7. Copy uf by-law ur rcsuliition passed by sbareliolder.-i. tS. ( liticatf, affidavit or declaration verifyinjr same. 3. 1ncui:asin(', thi; Caimt.m. Stuck. 1. I'l'titiuii of directors for siippleineiiiary letters [latent. 2. Allidavit or declaration verifying' truth of facts set out in petition. 15. Allidivit or declaratTon verifyiriy: si;,'natures to petition 4. Certirted copy of by-law under seal of coinpaiiy. Ti. ^■erifil'd copy of nutict' calling special ur jreneral iiioftiug. (■>. Cup.v of pruci'i>(Tiiij,'« lit special or j,'eneral lueetiii;: with respect to passa^'e and sanction of by-law. 7. Allidavit or declaration verifyinj; triitli of sin h iniimtes. 4. Decreasing thic Capital Stiick. 1. Pi'titiun of directors for siiiiplenieiitary letters patent. '2. Allidavit or declaration verifyini: truth of facts set out in petition. f •I ^1 i , I 1 t t ) V 1 ! 432 DOMINION- LEGISLATION. 3. 4. 5. (5. Afflilavit or declaration vfi-ifying signatiuvs to petition. Certified copy of by-law uuder seal of company. Veritic'd copy of notice calling special or general meeting. C'oi)y of proceedings at special or general meeting witli respect to passage and sanction of by-law. Allidavit or declaration verifying truth of same. 5. SvtiDiviuixa THK ExisTi.NG Share.s. Petition from directors applying for supplementary letters patent, , Allidavit or declaration verifying truth of facts set out therein. , Atlidavit or declaration verifying signatures of petitioners. , Certified copy of by-law unth'r seal of c (luipany. . Verified copy of notice, calling special or general meeting. , Copy of proceedings at special or general meeting with respect to passage and sanction of by-laws. . Atlidavit or declaration verifying truth of same. G vt 7. Increase on Decrease i.\ Nimber of Director-s. . Certified copy of by-law under seal of company. . Verified copy of notice calling special or general meeting. . Verified copy of proceedings at special or general meeting with resi)ect to passage of by-law. 8. Changing the Chief Place of Business in' Canada. . Certified copy of by-law under seal of company. . Verified copy of notice calling special or general meeting. . Verified copy of proceedings at special or general meeting relating to passage of by-law. 'hese forms should, of course, where necessary, be altered to suit the circumstances of each ca^e. ! FORMS. Eli XOTICR OF INTENTION TO APPLY FOR I>ETTF:RS PA- TENT OF INCORPORATION TO BE INSERTED IN THE VAX A DA OAZIJTTE'. Notice is hereby given that within one month after the last publication of this notice in the Canndn (IfKcttc, application will lie madi' to His Excellency the Governor-General in Council for a charter of incnrpiu-ation by letters pati'nt, under the provisions of " The Companies' Act." Revised Statutes of Canada, chapter 110, incorporating the applicants and such other persons as may become shari'holders in the proposed company, a body corporate and politic, under the name and for the purposes hereinafter mentioned. FoiiM OF pF/rrrioN. 433 spect to s patent, u-voin. i-espoct to 1. The proposed curiiDrni' iiiunc nf ilic cuiiiiiiuiy is •• The Cuuipany " (Limitfili. '2. Tho purpcisfs witliiu tlu' imrvicw of tlir Act, fur which iiicdf- poration is smiuht. arc ;{. Tile diii'f plaic nf liiisiiii'ss of tile saiil Cipiiipaiiy is to In.- the of in ilic I'lovince of 4. Tlie iiitciiilcd anioiiisi of ;lic capital sto<'li i< dollars. 5. The niinilicr of sluircs is to 1pi> and the annaint of each share is to lie of the value of dollars. it. The ninies in full, and the address and calling of cacli of the applicants are as follows: of whom tlu' said are to 1k' the first or provisional directors of the said (.'oniiiany. Dated at this day of A. I). 1000. Solicitors for the applicants. CT01t.S. eting with NADA. relating i-ed to suit ERS PA- 3 IN THK i-r the last ion will l'« >uncil for a rovisions of hapter 110. nay becoiu" aiul politie, led. FOH.M OF rKTITlON FOR 1 .\C()K1'( )KATl(tX. To His Exci:i.Lr:.vcv thf. (Jmneu.vuh-IJknkkai. in L'ou^tciL. The petition of tHcrr mini rt tiuims in full, mhln^.i mul ciilliii;/. or (>iiiiiiiit\iiii of au'li ijf llir (iiiiiliciiiits. 1. That your petitioners are tlcsirous of oh'ainin;; i charter of incorporation hy letters patent under the provisions of "The Com- panies Act" (Itevisi'd Statutes of Canaila. chapter ll'.M incorpor- atiim your petitioners and suih oth.rs as may hecome shareholders in the company, thendiy ere i ted, a body corporate and politic, under the name of " The Company " (Limited.) which is not the name of any other known company iiicori)orated or iiniiK'orporated. or liaMe to lie confounded therewith, or otherwise on iiulilic grounds olijectio|];ililc. 2. That your petiti. Tliat the chief place of luisiuess of the slid coni|Kiny is to ln^ at the of ill the Province of in the Dominion of Canada aforesaid. 0. That the amount of the capital stock of the said company is to he d(dlars. 7. That the said stock is to he divided into shires of the value of dollars each. w.8.t>.j[. — 28 484 DOMINION LEGISLATION. S. That till' siiid nri- to bo tin- first or provisional directors oC tho siiid company. !l. Tluit your petitioners Inive taken tlie amount ol' stock, ami paid in tliereon th(> several imoinits set cippnsile to tiieir respective names as I'ldlows: — ■ Petitionor'a name in ^°- °^ fulL , f '''''*' 1 taken. Amount of .stock sub- scribed for Amount paid in on stock subscribed How paid. ■ Total 10. The a;;H:re>rale of stock so taken amounts to dollars, bein.i: one-halt' of the total .-imount of the stock of the company, and the ajj:Kre)irute i)aid in on the stock so taken amnnnts to dollars, beini; ten jht cent, thereof, such a};>?rej,'iite has been paid in to the credit of the lteceiver-(«eneral and is now standinj; at such credit in the Hank in tlu> of , as appeiirs by the receipts from said bank, •.vhich are hereunto annexeil, 'rhei-e((/i has been invested in ri'al estate, suitable to the objects of the company, the sum of dollars. The said real estate consists of , and is of the value of at least dollars ovi-r and above all incumbrances theretui, beinj; sutlicieiit with the sum so itaid in as aforesaid, to nntke per cent, of the a,i:^'rej;ate of the stock so taken, and is duly held by iinil as Ydiii rKTiTiriNions thkiiki'ohf, phay, Th;it Voni- Excellency will lie pleased to ^rant ii <'harter of incor- poration liy letters patent under the (Jreat Seal to your tietitioners :ind such others as may become shareholchM's in the company thereby created, a body corporate and iiolitic, for the purposes ami ob.jei'ts afores.'iid, under the name of '" T'lu' Company " (I.indtedl. Ami Yofn petiticnI'^rs as in duty dounp wii.r. i;vi;n ru.w. Dated at the this of day of in the of A.n. i!» Signed and executed in the presence of ((/) This clauKe is only to he inserted when necensary. m toUM OK DECLAHATIOX. 43.5 roU.M OK IH-:CLAIJATI <»N '!'<» I'.K rsi:i rijooF iji:(>rii{i:i» ix sii > IX nii\isni\(; I'r ("jlIKUhl. <\iiu'(' (if I'UK I.NCOI'l'OKATiox I'OKI' OF I'lOTITlUX III (I Cuiiiity of i otlicrs fur Jot TO wit: ) " 'I'll I, 1" iiiiiltcr (if 11,,. .||,,,|i Icr; •■iifiiiii (if l''"''"t >'( iiicorpni-ii! .'iikI I if till' • if Of ilciiinl y ilt'cliiri':— ;iiiil I'niviiicc (if <''>miiiiii.v " fLiiiiit(.,l). ill I 111' ('(iiiiity . (1(1 ]. Thaf I "lis IKTson.ill.v ,,,,.s,.nt iukI did sij-'ii ihcir "-■•''iiiilo iimic.xcd) iini.vin- f,,r l Th cllcr.- "''•live lljillics t,, til,, I luitciil (if 2. TImt I ."{. Tluif tl of the iiroiicr i|j,„d l^iK'W tile Slid K' siKiiiitiifcs (if ( iclitiiin iiK'iriMir.-itidii ;is '""Miiiy '• (Limit,.,!) 4. 'I'hiit tl writiii- (If il„. s,,id |,,,,.t n- scvcnil timicd in fh,. i),.(iti,,„ I ■•lllcyjitllllis Jllld ii's respect i,-,,l_, ■^'Mtciiiciit^ i'-'i'iy " (I.imitcdi 1 "!• iiHoriKir.'itidii (If •• 'I'll :i.iilc Jllld iiiiil liclicf. tl U'rciiiitd jiiiiicxcd Tl 111' and ciiTt'ct. ill'"'. t(i the I ( are Cllll- lllll- '•'St (if IIIV I \vu <'(iiiipjuiy. iiicirpur "< »"l, as I vcrilv 1 ( "•li''V(". tile I,; (iill- Idiiiidfd tl ii'i'i'v. ith. (ir iitlici "" '• "iiincirp,, rated. ,„• ii,.,i,| line .if any utlicr annexed mark. •'s«'iil, and did Illy .'■ii.'-ned li see the ai ii'iiiiaKer (a;,'eiit (ir casl Ihe ,,,. ii''''» "f the lijiiik df ■*'<• That I know the sa^l aforesaid. IllcXed " hd is at nindo nnder oath and Jiiowiiij,' that it is of tl 10 same force and eff,.ct Di dared lie fore nie at tl y virtue (If " The Canada Kvidence A as if ot. lS!j;{," of of day of in the thir A.I>. KM I ll'liere it h impnmhh U ont m the xrri-ral parnqrapl,^ or this ,1,'rl xori/ to oMit that portion a,„1 h or onK pemon to mhsrril, iriition, it itill, or ril'e ax to the f.trtH net "ome one possessimr the requisite kunwled "V It est'ihlinhed in a course, he neren. .'/''• t'parate declaration hij CHArr^R lui. KEVIHED STATUTES OF CANADA, 1880. i f ■ 1 ' An Act respecting the incorporation of Joint Stock Companies by Ijctters Patent. HER ^r.V.TESTV. by and with the advice and eonscni of tlic Senate and House of ("oninions of Canada, enacts as follows: — Short title 1. Tliis Act nia.v lie cited as " Tlic Compfinics .1(7." Iiiterpreta- tiouf*. "Ooiii- "paiiy. "UikU'v- " taJdiit;. "Loiui " COlll- " iiaiiy. "Keal '' estate." '•Laiul." ' Share- ' holder. " Man- " ager." 2. In this Act, and in all letters patent and supple- mentary letters i)atent issued under it. unless the con- text otherwise requires. — (a) The expression "the company" means the «'om- I>any incoiporated by letters patent under this Act; ih) The expj'ession " the undertakin}'' '' moans the business of evei-y kind which the company is authorized to carry on; ((•) The expression ''loan company'' means a com- pany incorporated for any of the i)Ui'])oses to which the powers of loan comjKinles extend, as hereinafter pro- vided; ((/) The expression " real estate " or " land," includes messuages, lands, tenements and hereditaments of any tenure, and all immovable property of any kind; ((') The expression "shareholder'' means every sub- scriber to or ludder of stock in the company; and in- cludes the personal representatives of the shareholder; (f) The expression '* manager " includes the cashier and secretary. Ch. 119.] CON"! IJN'IS ol" NOTICE. -[:\-i 3. Tlic Ciovcriior in ("omicil niiiy. by l<'tl<'i's jwUcnt coini-mu ■80 .t Stock ICS Aci: nd suppU'- s llu' i'on- ^ tlu' com- Act-, means the |iiutUoii'/A'(i ins a coni- whicli the liafter yi'o- ," iucludos Ints of any Ind ; (>vory snlt- Iv; and in- It ' liareholdev ; the oasUioi* under tlu* (Ircat Seal, jirant a cliiirici- to any nmnl-* r of jHTsons. not less llian five, who ju'lititm Ihcrcfoi', c(»n iiinvi furiiK'il t( I'ci'iiiiii If 111- cdiponitfil OtlCC til UiVfll. it sIlllU contain. stitutinji' such itcisons. and ollici-s who t lu'i't'aftci- 1m'- I'x i>ttti imtuiit. coino sliarchhlci's in the coinjiany thcichy cicjitt'd. a liody coriMU-atc and |»olitic. for any of tlic jairposcs or oltjf'cts to wliich the h'jiishit ivc aulhoi'ily of tiic I'aiiia- nicnt of Canada extends, except tlie conslruclion and r.xicption. \v(u-kin«i' of I'ailways. or the business of hanliinn and the issue of paper money, or the )»usiness of insurance. 4. The apjdicants for such letters |»iitent sliall ,^iv(-N at least one month's jtrevious notice, in the < 'mniil.t |^l\|{ (ur.dlr. of their intention to apply for the same, statinj therein. — ((/) The ])roi>osed corporate name of the coniji.Miy. Nnme. which shall not be that of any other known ccunpany. inc(u-porated or unincori>orated. oi- any name liable to be confounded tiierewith, or otherwise, on laiblic <»se(! And a c?r- tain amount pail thereon 4. The ajij-fej-ate so j.aid in thereon shall, if tiic j","p cpinpany is not a loan company, heat least fen per cent, ef the stock so taken; if the coin|»any is a loan company tiK' a^i^irej-ate so paid in <»f the stock so taken shall he ai h'ast ten jMM' cent, thereof, and shall not he less than on.' linndred thonsand dollars: amount' °' " ^- ^'^^ ^^''''^^ ";/ r/n'iicants "' •^^"'f' ''>''''^^f '» >^<> me chartered l>a.vk in Cniada, and thr enosit api tor ini'or- lioration. applicdvts shall, with their j)etitiun, pruduce the d< receipt fur sn.ch amount so deposited. Hotui n of ' aURMHlt to . uumimny I nciil or toappli- cants. (b) ^-1^ ani/ time after the ■'fi'jnin;/ of letters pulrn/ 'jtorating the applicants as a compani), the said at/. gate, so paid in to the credit (f the Heeeiver-t he returned to a nd for the sole use of th V fcneral, rn( jxiid in or contrdnded to the same, under regidaturns front tune to time made h)j the Governor in Conreil: '(c) In case the ohject of the co)itpan)j is one reqn iri Proviso as to portion wh'ichnm" '^''-' '^ ••^Itould own real estate, lie repre- sented by real estate. ati)j pirrti.on not exceed i mi one-hidf of such a(i(jreijate ma;/ he taken as paid in, if is liona ride invested in real est>-t»iii ' . " prcvisioiin letters piiteiii of iiii\ provision wliieli. nndei- this Act. ""'^ V. '" nii;ilit l»e nnide l>v Itv-hiw <»f liie roniitiinv ; ami Hiirii pi-o- '•''"■"* vision so einixMlied slnill not. unless |>rovision lo llie ••(»n- trni'V is nuKJe in the letters palenl. lie snbjecl to re[Miil or iilterntion i»\ l»v-lji\v. O. Itefoi-e llie letters patent ai'e issiHMJ. the aiiuli '''''""""• ' ' HIV inm- ranls shall est a 1 dish, lo the salist'aclion of the Setreiar\ '''■' ' ' '"' • e-talilislieil ot State, or ol' such other oilic cr as is charjied hy Mi" (loveriioi- in Council to report thereon, the siinicieiicy id their notice an. X(»lice of the ;iraiit inu' (»f the h'tters patent shall Notice of '^ "^ ' issuinn let- be forthwith ^iiven bv the Secreiarv of Stale, in tlienrsia- ■^ • • . tint. ('(iinolii (lir.rllr in the fctriii A. in the schedule to this Act; and thereupon, from the date of the letters patent, the ])ers(»ns therein named, and their successors, shall be a body corjiorate and p»ditic. by the name m 'iitioiied therein; and a copy of every such notice shall fort liwii li be. by the company to which such notice relates, iiisi ited on four separate occasions in at least one iiewsj>a[M r in th<' county, city or ]»lace where the head ollice oi- chief agency is establislie^'J»"t^'-> 440 DOMINION (O.MI'ANIKS ACT. (Ch. li!l. , ':' imiiie Ity hllpplt'- military luitunt, (wIh'IIkt L'ivcii bv llii' y su|)|»l>'m<'Utjii-v Ictlcr.s jKili'iil. or <»ii iiiiiiilyiimiiiioii) iiiccn-poiiilfd iiiulcr lliis Act, JH the siiiiic iis tlic iiiiiiic of mm cxisliii^; iiiror poijilcd or iniiinorj»orjil('(l coiiipMiiv, or so siiiiiliir IIm'I-cIo iis (o lt<' liahlf to be conroiiiKlcd tlici'cwitli. tlic (lovcnior ill roiiiicil niav diicrt tin- isMiir ol" siip|»h'- iiu'iilai-y Icllcrs patent, i-ccitiiij;' the I'orincr Icttci-s and clian^in;; the nainc (d" I lie coinpany to Hoino otlicr naino wliicli shall I)(* si't forth in the snpidcnu'iilarv letters patent. ('omiinny limy oi'tain (Miaii^D of iiaiiiu. C'lmnce not to HtTt'Ct rif{lit>* or (il)Ht;a- tioiis. Coinpany may antji- (irizt) (lirec- loi8 to apiily for extension of powers. Applica- tion by directors. 11. \\'heii a coniitany incorporale*} niuh'r this Act if? desii'ons oi' ado|»tin^' another name, the (iovernor in Council, upon bein^ satisfied that the (han«;e desired is not foi- any ini}iropei' jnirpose, may direct the issne of snpplenienljiry letteis jtatcnt, recitinjr the fonnei' letters patent and chanj;iu}j: (he name alteration of its na.nie under the two sec- tions next ]»recediiij; shall atl'ect the rij-hls or obligations of the company; and all proceedinji's may be continued or commenced by or aj-ainst the conii»any under its new name that mij;ht have been continued or commenced by or against the comi»any under its former name. 13. The c(mi]>any may, from tinu' to time. i)y a resolution passed by the votes of shareholders repre- sentinji' at least two-thirds in value of the suliscribed stock of the comiiany, at a special general meeting called for the jMiri)ose, authorize the directors to apply for sup- ]dementary letters patent extending the ])owers ot the com]»any to such other purposes or objects, for wliich a comj>any may be incoi'i)orated under this Act, as are defined in the resolution. 14. The directors may, at any time within six months after the passing of any such resolurion, ])etitioii the Ciovernor in Council, through the Secretary ..f State, for the issue of such sui»plementary letters patent: iW, cutwry uiulcr in((»r • siiuiliir th, tlic suppl<'- •rs iiixl V naiiio his Act iM-nor in ('Hired is issii«' of •r Ictlris to sonu' l»]»U'iiU'U- t\V«) S«'C- (li^Jilious ■oiiliiuK'd 1' its new icncc ■d 1)V nc nv a rs vt'pre- iltscii bed 11 u' < ailed for sup- [I'S ot: tlio whieli a h, as are iJliin SIX I' 1 jetition .f State. Ch. llf).] KXIKNslnN or I'oWKRS. HI L*. The apitiicanis tup smh siiitidenienlaiv h'( u is N'li'" "f l>aleii( shall ;iive iit least our iimiith's iintici' in 'lii ('(iiuii/d (lir.rllr of their intention to apply for tlie siiine statin*:;' tliei-ein the piii|)oses or oitjiTis to whieh it is desire. in the .schedule of this Act; and thereiiiion. from the tiate of the siip|)leiii('ntary letters jtaient. the midertakin;; <»f the (•()ini>any shall extend to and include the other piirp(tses or objects st't out in the supplementary letters |i;iteiit ;is liilly as if such other purjtoses or objects were nentioned in the oi'i};inal letters ]iat<'ni; and a co]»y of every such notice shall forthwith be. by tin- company to which tlu' notice relates, inserted on lour se]»araie occasions in at least one newspaper in the county, city or place wlnre the head oflliee or chief ajiciicy is established. IT. The directors of the com). any. othei' than a loan eompany, may. at any lime, make a by-law subdividing the existinu" shares into shares of a smaller amount. firnnt of miliplc- iiiciitiirv Utters r" tt'iit. Notiof ot issue tliureuf. Suli-divi- Sl'Jll t)f sli.ires. IS. The directors of the conii»aiiy may. at any time, increase of itcnt ; after the whole capital stock of the company has been cai>itttt. 442 DOMINION COMPANIES ACT. [Ch.ll!>. i ! I'.ylaw for tint )nn- Reduction of caiiital. Proviso : as to loan coiii[iaiii(js Hylaw for that piir- [lose. Lialiility to credi- tors not al- fectfd. taken 111* nnai(l in. nial«' a by- law tor inci-casin^i' (he capital sloclc ot llic company to any amount wliicli tlicy consider rcipiisitc tor the due carrying' out of tiie objects of tbe coni]»any: 2. Such V)y-la\v shall (h'clai-e the number of tli.' shares of the n<*\v stock, and may pi'escfibe the nuinner in which tlie same shall bt al' Mted; and in default of its so doinjj;, the control of such allotment shall vest al)sn- lutely in the directors. lt>. The di'-ectors of the company may, at any lime make a by-law for reducinj>: the capital stock of the com[>any to any amount which they considei- advisable and sutlicient for the due carrying;' out of the undertak- iuii' of the company; but the cajMral stock of a 'nan com- ]»any shall nevei- be reduced to less than one hundred thousand dollars: 2. Such by-law shall declare the number and value of the shai-es of llie stock as so re. The liability of sharehohlei's to persons who were, at the time of the reduction of the cajdtal. cre(lit(us (»t the ((Mupany. shall i-enmin the sanu' as if the capital had not been reduced. Slioli by- law to he niii'roved by liare- liiililers anil con- Jirnifd by supiile- nientary letters luitent. Petition for supple- nientarv letters ' patent to cunluiu l.y- law. 20 No by-law tor increasing;- ov reducing the capi- tal stock of the c(»mpany. or tor subdividing- the slmres. shall have any f(M-ce or effect whatsoever, until it is ap jn-oved by the voles of shareholders representinji; at least two-thii'ds in value of all the subscrib<'d stock of lii" comi»any. at a s|ieciiil <;eneral meetinj;- of the comi>aiiy duly called tor c(»iisiderineiilioii the (J(»veiiior in Council. throuj.;h ihe Secretary of Slat'. for the issiM' of supplementary letters ]iatent to c(»ntirm the same: Cll. 110.] IXCHEASE on DF-CRKASE OF CAriTAL. 44-'i "2. The (lirecKtrs sliiill. witli siuli iM'tiiioii. prodn-c ii'<^i"«' ' ' etc.. to lo conv of siicli l»v-lii\v, iindcr llic seal of llic (•oiinian v. i'lul i" "''>"■"'.' ' • • ' • with yvXi- sijiiicd by the jursidciil, vicc-itrcsidciit or sccn'taiv. and tion. establish to the satisfact i(»n ol' the Srcrctjiry of Slate, Of of siicli other ollicer as is (liar;j,('d by tlie ( i(»\ criiof iti roi.iicil to I'eport thereon, the (hie |>assa;;e and ap|U'oval of such by-hi\v. and the expediency and hinnt fnh' rhar- aetei' of the increase or i-ediiction of ca|»ilal oi- sub- division of shares, as the case may be. thereby itrovich'd I'ur: .'*>. The Secretai-v of State oi- sncli ollicer shall, for P'-vic<' niay l)e that iMirpose. take and keep of i-ecor'l anv reouisile evi- f"'^« " 'i'"' ' ' ' • ' If. I It liy dence in wi-itinu'. bv oath oi- alliruiation or bv sohnii! ^"■'■''■'^"■"'y ^ • ■ (it statu. declai-ation, as above mentioned. 313. rpon due proof so maih', Ih*- (Joveriii-r in Toun- (iiantins Cll may jirant such supjuemenlary letters patent uu(hr lu.Titaiy the (Jreat Seal; and notice thei-ectf shall be foi-thwit h putent ; yiveii Ity the Secretary of Slate in the t'linndu i nr.cllr, t-wwiut' in the foi-m ('.. in the schedule to lliis Act; and t here- tcrs pa- tent. uiKtn, from the dale of the siipplenieniary letters pat.nl, the cajiilal stock of the company shall be and re'nai!i increased or reduced. (»r the shares shall be subtli\ided. as the case may be. to the amount, in the manner and subject to the conditions set forth by such b,\-la\v; and the whole of the slock, as so increased or reduced, shall become siibj<'ct to the pro\ isioiis of this Ail. ill like manner, its far ' ■< possible, as if \'\{v\ part thci^'of had been or formed |>arl of the sly ;i s])('(ial Ad of J'arliainont ctnltodyinn- 1li«' jn'ovisions (if this Act and of tho letters patent: I'rovided always. coiiiiuuii,' (|,.,f ^i,(. oxei'cise by loan companies of the pow«M'S con- ferred by this section shall be subject to tlio s]M'cial ]»r. The jxM'sons named as such, ia the letters patent, shall be the directors of the c(tmpany. until i-ejibicefi by ethers duly ajipoinved in their steiol. lioard of dir.ctors. Provi- sional ^\ •ilcf Ibis I'bl siib- iM't'ol' in 1(1 njio'i iiii:' ami lb«' issue iianip,*'!! less than latrni. Ibucd b; JtO. Xo pci'soii sliall Ix' ('Icclcd Of anjjoinlcd as u Q"fti'<''<'a- tiiJiisdf dii'iMtoi' thcri'attcr unless lie is a sliart'lioldcr, o\viiin;j; '^ui'-^tMiuint (liioctois. stock absolutely in his own litilit. and to the ainounl i'e(]nired by the by-laws of the conipany. and not in ufreai- in i-espect of any (•al> thereon; iiiid at all times the majoi'itv of the dire(t<»i's of the comnanv shall b«? persons resident in Cunaihi. Kesidence. »JI. The eomjtaiiy may. by by-law, iiicieiise t(» not Ky-uiw tor more than hrteen. (»r decrease t valid. Upon unless it is ajiproved by a \(>ie of ;ii lenst two- thirds in value of tlie stock represented by the share- holders ]»resent at a special jiciieial meeting duly called for considerinji' the by-law; nor until a <<>py of such by- law, certitied under the se;il of the coiiipaii.. has been d«']M»sit. (1 with the Secretary of Stale, and has also been published in the Cumiiht (in:cUe. IV2. Directors of the conii»aiiy shall be elected by Riection of the shareholders in atent or by-laws of tiie company.— lOLOtiou, Id) The election of directors shall take nl.n " vearlv. .. , ' • • \ early. and all the directors then in (dhce shall reiire. but. if otherwise ub lished in tl.e ]»lace wln-re the head olVice or chef place of business of the cfuiipany is situate, or if there is no such newspaper, then in the ]>lace nearest thereto in whi(di a newspaper is published. ■MR I :!;;:!! if'M t! 44G Votes Froxies. All calls must liavo beuii paid. Majority to decide. <./'astiii({ vote. liallot. Vacancies, how tilled. DOMINI' uV COMPANIES ACT. [Ch. 119. President, vioe-presi- depit iiiid oUiceis. Failure to elect liirec- tors, how reuiodied. Powers and duties of direc- tors. (r) At all {•■('iKM'iil iiu'ctinjis of the coinpiiny. t*vci\ sliiirchokh'r shall be t'lititU'd to \x'\\i' oiu' vote for cacli slian* llit'ii held Itv liiiii: such votes may Ic ^ivcii in per sou or bv ]»roxv — the holdcf of anv sm-li in'oxv liciii!^ hiuisclf a shai'clioldci*, but no shairholdtM- shall be t-ii- litlcd, citlu'r in ik'I'sou or by i)roxy. to vote at auy uuct- inj' unless he has paid all the calls then payable upon all tlu^ shares held by hiui; all ose; and the retiring directors shall continue in ottice until tlieir successors are elected. »J5. The directors of the company may administer the alTairs of the com]»any in all things, and make or cause to be made for the company, auy desci'ijition of <'onti'act which the company may. by law, enter into; and may. from time to time, make by-laws not contrary to law, or to the letters i»atent of the company, or to thi;'> Act. for the following i)uriioses: — itock. ni {n all for the liiu'd li\ at siith equality V ballot; (li lectors . by the rs of tilt- 'U'ct Iroiu SCI' (il. a ppoiut all ,rs is not mic. tnc vcd; b\il •general purpose ; lice iiulil (Iniinistcr make or •iptittn of ntcr into; contiary my. or to stock. Ill'' the issue Cli. 119.] POWF.US AND DUTIES OK DIHIXK )r.S. 447 and i-ejiisti'ation of cer-liticates of slock, the foi-feitiire of stock for non-payinenl. the i»ointment. functions, (hities and i-enn)val ALPntsand of all agents, (dhcers and servants ot the company, the security to be jiiven by them to the c(unpany and theii- remuneration; {(') Tlie time and jdace for the holding;- of the annual Meetiuys. nieetinjis of the company, the calling of nieeiinus. rc^u- lai' antl special, of the boai'd of directo. and ol the <(>m- ]»any. the (jUoiMim. the re(|uirements as t(» proxies, and the procedure in all thin.us at such nHMtin«is; (/') The inip(tsitioii and rec*»vei'y of all |»enaltics and I'fnaities. forfeitures which admit of regulation by hy law. ('/) The con(bict. in all nther jiiirt iculars. of t he 'Miumi attairs of tlie company; And the directors nuiy. fi'om time to time. r<'peal.u\vt'rs. pi-oiiuity. Limifiitiou of .iiiioiuit to \>e bor- rowed. CalliiiR in of moneys uiipairl uii shares. Interest on calls over- due. jii'c due from liiiii to tlie coinpany, on account of calls oi- otherwise. 117. The directors may. w lieu authorized by a by- law for that purpose, passed and approved of by ilic AOtes of shareholders, represent inji' at least tw')-thii.] J5 siitiic. Jit llic ijitc of six jmm- cciil. ]M'r iimimii. from the diiy iippointcd for iiayiiiciit (o the tiiiic of aitiial ItiiyiiH'iit tltcicof. 40. Tlic tlircctors iiiiiy. if tlicy tliinlc til. receive I'nvinont fi'(»iii any sliarelioldei" williii;^- 1o advance llie same, all "n sluuts. (»r any part of the amounts dne on the shares !ie]d l»y such shareholder, beyond tlie sums then actually called for; and upon the money so paid in advance, or so much thereof as. from time to lime, exceeds the amount (»f the calls then made uj»on the shares in respect of which such advance is made, the comiianv niav pav interest at sucii intevcst ■ limy I'" rate, not exc<'edin<;' eijihr per cent. ]ter annum, as (lie""i>wtMi. shareholder wlio ]»ays such sum in advance, and the directors ap'reo upon. 41 Tf. after sucJi demand or mttice as is prescrihed ioif.it mo " I if si Hires hv flu* letters iiatont or l»v the bv-laws of the companv. '"'• iu>ii- any call made njio'i any share is not paid wiihin such aiiy. and may be dis- jtosed of as. by the by-laws of the comi)any or otheiwise. they ])rosrribe; but. notwithstanding' such forlVitiuv. liaijiiity' of the holder of such shares at the time of foi-feiture sliall contimicd. tof ^ • ' ' cull* by nient of all calls, and interest thereon, by action in any 'it'tiuu. CourT of (•(tnipetent jurisdiction; and in such action it shall not be necessary to set forth the special matter, but it shall be suflicieiit to declare that the defendant is the Iwdder of one share or more, statin*^ the number of w.s.i>.M. — 2!) Ill 450 DOMINION COMPANIES ACT. [Ch. IIP, ^,^,'^;f,„'^"'y sliiircs, iind is indcblcd in tlic sum of money to wliicli ilu- provou.'""^ *"'''*^ ill iirn'iir iunonnt, in rcsjKM't of one call or more, upon one sliiiic or moi-e, sliilinj;' llie numbei' of ciills and the amount of each call, whereby an action has acciued c'nrtificato pt by the secretary, or by some othei' otflcer s]»ecially charji'ed with that duty, whei'ein shall be kept re- cord<>d, — Copy of (^a) A copy of the letters patent incorporating; the i)iui!iit, i)y- ('omitanv, and of all su|)plementarv letters patent, and laws, etc., of i'.ll by-laws thereof; Names of sliare- holders. {h) Tlw. names, alphabetically ai'ran^ed, ot all per- sons who are or have been shareholders; (r) Tlu' address and calling' of every such person, while such shareholder; (//) The number of shares of stock held by eacii sharehohbu'; (e) The amounts paid in and renminin<^ unpaid re- spectively, on the stock of eacli shareholder; (/■) The names, addresses and callinjjj of all persons directors. y-\xf) jire or liave been directors of the company, with the several dates at which each became op ceased to be such director ; 2. A book called the register of transfers slnill be provided, and in such book shall be entered tlie ])articu- lars of every transfer of shares in the capital of the comi)any. r.ookstobfc 44. Such books shall, during reasonable business open for "^ iuspection iiours of cvcrv dav, except Sundavs and holidavs, be kept and takuiR . . x . . ■• i HxtraotH open for the inspection of shareholders and creditors of Addresses. Number of shares. Amounts paid, etc. Names, etc., of Register of transfers. ■if [Ch. nc, tiiicli ilic or iiu)r»'. •alls am! I accrued It' uiidci- ollict'i' (if a shaiM'- I'li inadc. thci'con. cvidonoo oks to he s]KM'ially lvl'l>t I'C- [itinj; the tent, and t all pt'i'- II IKTSOn. by oach paid i'<'- ])orsous with tlH" be sncli shall bo partieu- il of the business «. be koj>t 'ditoi's of Ch. 110.] I'ENAF/rV von FALSI': LNTHIKS. 4.)! the conijtany. an!'esentatives. at the head ollice or chief place of business of the c<»uij»aiiy; and evei-y such shareholder, credititr oi- [tersonal repre- sentative; may make extracts therefrom. 45. Everv director, oiVicor or servant of the com- roimity fm- ' tiiisi' fii- pany, who knowin;ily makes or assists in makinji any tii-*! untrue entry in any such book, or who refuses oi' wil- fully ne^i'lects to make any i>roi)er entry therein, or to exhibit tlie same, or to allow the same to be inspecti'd and extracts to bo taken therefrom, is j;iiilty of a mis- demeanor. 40. I-'verv comiianv which neyhM-ts to Keep sndi i "if'ituic book' or books as aforesaid, shall forfeit its corporate i'i«lhts. 47. Such books shall be hrliini f'irir evidence of all i'"^"'<«t"'f facts juii'portinj; to be thereby stated, in any action, suit ^'^'^''^''i^'-' <»r pi'oceedinji' apiinst the comjiany, oi' ai-ainst any share- holder. 4S. Xo transfer of shares, unless made by sale un- Trnnsforof del' execution, oi- under the decree, order or judjiiiient of vhuiomIv a Court of comjtotent jurisdiction, shall be valid for any purpos(? whatever, until entry thereof is duly made in the rejiister of transfers, except for the purpose of ex- hibitin*,' the rif ^imiisiii certain shares not fully paid in has been made with such con- casus. sent, to a person who is not apparently of suthcieiit means to fully pay up such shares, the directors shall be jointly and severally liable to the ciH'ditors of the com- pany, in the same manner and to the same extent as the transferring shareholder, but for such ti-ausfer, would ! m 452 J)()MINI()N COMl'ANIllS ACT, [Cli. Mil. Ilov; Diily (i iliii'olor limy II Void liiibilily. Provision wlien shares arc transiiiit- te(\ iitlirr- wise tliaii Ijv trans- fer. Order of court 111(1 y be obtain- otl on ai)- plicitioii. Notice of apiilica- tiou. havo been; lni( if iiny (lirccior jd'csciil wlicn iuiy siidi transfer is allowed docs Htrtiiw illi, (»r if aiiv dircctin- (lien aliscnt docs, within Iwcnly-foiir hours aflcr he lie conu'S aware thereof an newspaper there published, then in the newspaper published ncarcsi thereto, such director may thei*eby. and not otherwise, exonerate hinislin,Li to the i»rovisions of this Act. and the dii'ectoi-s of the company entertain reasonable erior (Vturts in llie I'lovince in whieli the head otiice of the company is situated, a de- (daration and petition in wi'itinji. aibb-essed to the jus- tices of the Court, settinj; forth the facts and the num- ber of shares ])reviously b(don<;in<;' to the person in whose name suidi shares stand in the books of tlu? com- pany, and prayinj;- for an order or judjiinent adjudicating^ and awardinjj;' the said shares to the person or jtersoiis lefi'ally entitled to the same. — by which order or judi;- nieut the company shall be j-uided and held fully harm less and indemnified and ndeased from every other claim to the said shares or arisinjji' in respect thereof; » 2. Notice of the intention to jiresent su(di petition shall be given to the person (daimin<»- such shares, or to the attorney of such person duly aiithorized for the i)ur- l)ose, who shall, upon the filing of such petition, establisli his right to the shares referred to in su(di petition; and the time to plead and all other proceedings in such cases ' 1 ^h. I!t Cli. ll'J.] TI!ANS|-i:i{ OF SIIAIUvS. 45:i ly silcli • lie 1h- ililislics I ill III*' n» iiri'^i hcrwisr. ; (»t IlK' lie (l«':>lli (' OWIKT (M'Oi'tliu,!; •s of 111" ' l('};iilil,v lakc iiiui viiu'c ill m1. ii (If- llic jus- he iiniH- Icrsoii ill It he com- dicali'i^^ JKH'SOllS or jnd.i;- ly hiinn or c'laiiu petition les. or to the pur- I'stabtish ion; anital stock thereof. 55. Every shareholdei-. until the wlnde amount <»f his shai'os has been i»aid up. shall be indi\idually liabU' to the creditors of the comiiany to an amount ('(pial to that not paid up tliereon; but he shall not be liable to an action therefor by any creditor until an execution at the suit of such creditor against the coiiii»any has been re- turned unsatisfied in Aviiole or in ]»art; ami the amount due on smdi execution, not exceeding the amount unpaid on liis sliares, as aforesaid, siiall be the amount recover- able, with costs, from such shai'eholder; and any amount til Cl)St> Uc-itvictinli lis to littue • ler Ah 1(1 trims- li'i liy ilclitiir to till' CIIIU- imiiy. Ti-aiisfer by ii'-'''' -*.\ ^ ^ ^q.- % ?\? 23 WEST MAIN STREET WEBSTER, NY. 14580 (716) 872-4503 y. % 6^ ml I I In, )^ « il] ] m'j p. 1 ': i 'm'A r. :\ Ml ii if 45-1. DOMINION COMPANIES ACT. [Ch. 11!>. SO recoverable, if paid by the Hliareliolder, shall be ((.ii sidered as paid ou his shares. Triistcps, etc., not lieiKdiially liable. 50. \<> person, holdiiif; stoek in tlie conipan.v as an exeeutor. administrator, tn(or. cnrator, ynardian or trus- tee, shall be i)ersonally subject to liability as a share- holder; but the estate and funds in th(,' hands of such person shall be liable in like manner, and to the saiu-- extent as the testator or intestate, or the minor, ward or interdicted person, or the jiei-son interested in such trust fund would be, if livinji and competent to act am! holdinn- such stock in his own name; and no person hold- in uny dividend wlu'U the company is insolvi'ut, or aii,\ dividend, the payment of which rendei-s the company insolvent, or impairs the capital stock thereof, they shall be jointly and scvi'rally lialtlc as well to the company ii- lo the individual sharelndders and cre< all the debts of the comi»any then existing, and for all thereafter contracted during their continuance in oilier, respectively; but if any director present when such divi- dend is declared does forthwith, (»r if anv director then absent does, within twenty-four hours after he becomes aware tlu'reof and able so (o do. enter ou the minutts e! the board of directors his ]M'otest against t!ie same, aui' within eight days thereafter publishes such protest i's at least one newsi)aper published at the place in whicli the head oltice or chief place of business of the com[iaii" [Ch.ir.t be r(»ii- iny as i\ii I or lins- Jl SllUIM^ s of such the SiUiH' 1101', \Vill!. •k held hy ; vote as -.1 his storU and. nu'i hT. re and pay it, or an.\ coinpau;. they shall oinpany a> icrcol'. 1'"" iiul for all •(' in otlirc. such divi- •cclor tlK'ii le b('coui«> niiuuti s til sauu', ail'' orotcst i'i V le m \v hi< Ch.119.] LIABILITY OF DIRECTOUS FOR WAGES. 455 is situated, or if there is no newspaper the.'e pul)lished, then iu the newspaper published nearest thereto, such director may thereby, and not otherwise, exonerate him- self from such liability. 5W. No loan shall bo made by the company to any No loan i.y shareholder; if such loan is made, ali directors and other toMiuue- IidIiIlth, ofticers of the company maUinj; the same, or m anywise except hy ■ ' loan com- assentin;f thereto, shall be jointly and seyerally liable for paniis ; " .1 . . liability of the amount of such loan, with interest to the company, — aiiectors. and also to the creditors of the company for all debts of the company then existinj;'. or contracted between the time of the makiiifi' of such loan an Horvice of liroceKS oil the coiiijiiiiiy. 02. Any wunnuoiis. notice. <>rd<'r 01* other i)r()r('ss ot (locunicnt rciiuircd to be served upon the eonipjiny. nuiy be served by leavinj;; the same at the said oflice in tlic (ity or town in which its chief phice of business Is s'r, 11 ate, \.ith any adult person in tlie enii>h»y of the eoni])any, or ou the president or secretary of the conij)any, or by leavinj; tlie same at the domicile of either of th.*m. or with any adult i»ei-son of his family (»r in his emiihty; or if the company has no known oilice or chief jdace of business, and has no known president or secretary. tin- Court may order such publication as it deems reciuisiic, to be made in the premises; and such i)ublication shall be held to be due service upon the company. Useofconi- 7. Any (li'sci'iption of jiclicdi may be proscriilfd jumI iiiaiiitaiiK'd iM'turcii ilic ((unpaiiy and any sliarc- lioldci- llicrt'of; and no shaicholdci' shall, by reason of being a shaielioldei'. be incctnipetent as a witness iheicin. HH. In iniy action oi' otliei- lej»lementary letters jialent. shall lie ialent or of any exemidilication or copy thereof under the (ireat Sea'., the fact of such notice sliall be presumed; ami. exce|»t in any pr(tceedin lie si't fortli III li.Any ccunjtany heieicdoi-e iucoip(uated for any pur])ose or object for which letters pal'Mit may be issued under this ,Act. whether under a special or a jicneral Act. and now beinjr a subsisting and valid corporali(»n. may apply foi- letters jiatent under this Act. and the m]>any as a com- pany under this Act; aii{ l>e necessary Existing cniiiiiiiiiies limy iiliply lor clmr- tuis tiiiiler tins Act. r:iT(»ct of such cliar- tflS. I ! ' M, 458 DOMINION COMPANIES ACT. [Ch. 110. Subsifitinfi coiiipanifs iiiiiy apply for clini- tiTs witli cxtciiili'd powers, Pi'ovisioiis Blipllll'- im-iitary l«'ttfis pa- tent to lip- I'ly Agencies in L'uiteii Kiuf,'iltini. Dividend not to ini- pair capi- tal. Special Hcneral nieetiiii,'?. .\ots if company' attoiiiey valid in any sndi Icttci-s i)atont to set out iho names of ilic sliarcholdt'i's; anowers of the com- pany to such other objects for \vhi«h letters patent may l»e issued under this Act as the applicant desii'es. and as the (Jovei-noi- i!i ('oui.,il thinks tit to include in tlif letters jialen*. and \vhich have been mentioned in tlx^ notice of the application for the same, in the Canada Gazetir; ananv bv the name of the old comjtanv or bv another name. Tl. All the provisions of this Act in relaticui to tin- obtaininji' of supplemenlaiy letters jiatent by coni[»ani»'s incorporated hereunder shall, so far as a|>plicable. apj>l.\ and extend to api»licalions for letters jtatent under tin- two sections next preceding-. 72. The com]»any may have an a^iency'or aji<'iici.s in any city or town in tli<' United Kinjidom. TJt. No divich'iid shall b<' declared which will im- pair the cajiital of the conij)any. 74. Shareholdeis who liohl one-fourth i)art in valtic of the subscribed stock of the company may. at aii\ lime, call a special meetinj; thereof for the transaction of any business specilied in such written recpiisition and notice as they make and issue to that effect. '7a. l']veiv deed which anv i)erson. lawfullv em l-owered in that behalf by the company as its attorney. ^igns on behalf of the comi)any, and seals with his seal. ni.iio. Ch. 110.] coNTiiACTs madp: nv officeks iundinc;. 4:)!> of llU' l>r.t«'nt, by the of 111" liall r»'- teiit. issue of Couiifil \\v coiu- I'lii iniiy res. and ♦' in til'' I in til*' . ('(iniiil'' Ihc saianies |»1<'. ai»]»ly luUn- til'- iinfUfl'-S will iiii 111 valiii' . at any [msaciinii lition anil I'nlly eni- altovnt-y his seal sliall lie l.indin^j on the <(»nij»aiiy and shall have the same elTeet as if it was under tlie seal of the eoinj»any. TO. Jmci'v contraet, aureciiient. eimaiienient or bar-' '^"""''^^ aain made, and everv bill of cxrhanue drawn. aceeidiMl t.> !'.■ luu.i- or endorscil, and every promissory note and chefiue ^""ii'i'.i'y- made, drawn or endorsed on behalf of the company, by any ajjcnr. otiirei' or sei-vant of the company, in jieiicral accordance with his powers as such nndei- the by-laws of the company, shall be bindin;;- upon the company; and in no case shall it be necessary to have the seal (»f the conii»any allixed to any such contract, a^^recmeiil. en^iajicment. bai-jiain, bill of cxchanjic prMinissoiy n<»te oi' che(|ne. or Kt j>r(»ve that the same was made, drawn. accej»ted oi' indorsed, as the case may be. in pni'snancc ;|"| j||;||iY.'^' «»f any by-lay or special vole or (n-dei-; and ilie imtsou so""" j'.ctinji' as ajicni. ollicer or servant <»f the company, sliall not be thereby subjected individually to any liabilily ^\ hatsoevci' to anv third pei-son therefor; Provided al- ''",'^'^''' "" ■ to IxuiU ways, that nothinji' in this Act shall be construed loii"tL>^ authoi'ize the company lo issue any iiule payable to t he bearer thereof, or any jUMuuissory n i-ioofnmy lie liv (U'l-- nmde under this Act m:i\ be made bv oalh oi* atlirma- inMiicn <>v iiHiaiivit. lion, or bv solemn dedai-at ion. before anv justice of the jiea<-e. or any commissioner for takinu' allidavils. l<» lie; used in any of the Courts in any of the Trox luces of Canada, or any notary public, each oi whom is hereliy authorized and emjiowei-ed to administer (.ailis and re- ceive allidavils and declarations f(U' thai purpose. 78. The iii-ovisions of this Ac! i-elalin^' to niat um's ^'•vtum in- ].reliminary to the issue'of the letters patent or >^'4»I»1«' v»H.iau''" montary letters iiatent shall be deemed directory („,ly, [^'^Jj^^ i'"^' and no Utters jiatent or supplementai-y letters ]ia!e;it issued uiidei' this Act shall be held void or voidable on account of any irre«iulaiity in any notice ]ii'escril ed by 1 i j 1 1 m m ," i *l 4()0 DOMINION COMI'ANILS ACT. Lcii. 1 Wov(l"liiii- IttMi," to 1)0 iiisei'ted aftf coininiiiy (111 nil iio- ticos, otc. this Act, or (in jicconnl of the insiiflicicncy or jilisciicc uf iinv siK-Ii not ice. or on iKcoiiiit of jinv irrcjiuljirily in r»>- sjM'ct ol' iiiiy otlici- niiiUcr jncliniinjiiy 1o llic issnt' of tlic it'ttci-H ]»jil«n( or sMpploni-'nljiry IcUci-s imtcnt, 79. Tlic coniiuinv slnill Ivocp iiiiinlcd or jitlixc*! its nnnic, with tiio avokI " liniitctl " jifloi- ilic iiiuno. oii ilic outside of vvvvy ollicc or jdiK-o in wliicli tlic Inisincss of tlu' compjiny is cnri-ird on. in ji ('((nspicnons jiosition. in l<'tt('rs ciisily l«'roniissory notes, indorse- ments, clie(|iies. and orders for money or jioods. jturport- in«; to lie sij^ned by or on behalf of such company, and In all bills of jiarcels. invoices and receipts of the comjiany. I'eniiUy for 2. Ev( rv couipauv wliicli does not keei) i)ainted or violatio'.iof ,».,.' • 1 1 intoo.iiiiK allixed its mime, with the word '•limited" after it. in section. manner directed by this Act. shall incur a jienalty of twenty dollars for incry day during- which such name is not so kejit ]iainled or attixed. Peimityfcr '{. Every director and manaj^cr of the comiiany. wlu> perinittin ^ . • i ' i -i/. n i . . ' i , violation, knowiiijily aiid wilhilly authori/es or ]iermits such de- fault, shall be liable to the like penalty, I't'iialty on (li lectors or ollicers nsin^! or ftiitlior- i/.iun use of 4. Every director, manau'er or olTicer of the com- pany, and every ihm'soii on its behalf, who uses or jiuthor out "lini- itod •' on it. izes the use of any seal pur[iortinji to be a seal of the seaMv'iTii."' comjiaiiy, whereon its name, with the said wor. ICC tlf ill v<'- (■a its »ll llK' icss nt' ion. ill \\\ tiu' on iis iit'tcv it ,«'rtis('- mpiUiy. mlorst'- inri«»ri- . jind til )Uil>Jiny. intcil or r 11. -ii alty ui' nainc is uy. wlu' ,iK-li /It- ~it» coin- jUltllol- ll of tlu' ll \voi'■ ilio saiil Ch. 110.] puospiccrus OF (■()M1',\n'if:s. 4Gt wofd iiftci- it. is iiol iiicnlioiicil in maiiih'r iifon-said, '•',""'''''> '"■ IlllllltlOlI. shall incur a pmally of two Inindiod dollats. and sliall also lie iiorsonally liable lo ilic li(»idfi- of any surli hill of exchanjio, |»roniiss(My nolo, cImmiuc. oi- (ti'dor for iiKMiry (»!• ^((ods. foi- the ainonnt thoroof. unless the same is duly paid hy Ihe e(»nii»any. 'HO. Kveiv prospeci us of ihe conuianv. and everv I'iosiuh-his ' • • fte , 111 notice inviliii}^' jteisons to suliscrihe for share:- in the «r cii- llUll Ci>ll- coinitanv. shall specifv the dates and the names of ihe'i.uiMn ■ • _ tfied into jiersoiis to anv contrav the companv by lder in whose name the same stands in the books of the comi)any. shall be a valid and binding' discharjic to the ((unjiany for any dividend (tr numey payable in respect of such shar«'. and whether or not notice of such trust has been ;:iven t(» Ihe company; and the (ompany shall not be bound to see to the apjilication of the money paid upon such receipt. 52. Everv director of tlu* companv. and his heirs, i>iioctois Inilninni- oxecutors and administrators, and estate and etVecls. le-f""''" suits, ftc., spectivelv. inav. with the consent of the companv. uiven '^t^"'|'«t ''"» at any jicneral nieetin<»' ther<'of. from time to time, and at all times 1m' iiidemiiitie«l and saved luii-niless out of the funds of tho com|»any. from and af-ainst all costs, «h.irj4es and expenses whatsoever wliicli ho sustains or !!;■■ m:- ■i'.K. iff V'.'\ "jiPPI 4(;2 DOMINION' CO.Ml'ANIKS ACT, [Cll. llil. IK (lul'uult incijis in or alioiit any iidion. suit or piocccdin^- wliidi is l>|-oii;;'lit, roiiiiiiciH'cd oi- iH-osccnIcd ii<^iiilist liiiii. fot- ()!• ill i<'S|H'('l of iiiiy act. (Iced, iiialirr oi- tliiii^r wliaiso- I'.xc.ptt.y ever, made, done or iK'i'iiiillcd bv liiiii, in licati(Hi for lelteis jtatent and su|»pli' mentary letters ]iatent umh'r this Act, may desijriiaif the de|>artment or dei»artments throujih which the issiir thereof shall take jdace. and may jti-escribe the forms ot proccedinji' and rej;istration in res]»ecl thereof, and ;ili other matt«*rs recjuisile for carryiii};' out the objects ot tliis Act. ■.mount of Ifl'S nmy I "2. The amount of the fees inav be varied acc(»i-diii viuitii. to the nature of the company, the anumnt of the ca|til; stock and other particulars as the (Jovernor in Coui KM tliinks tit. Must ]iivi(l I ai'tloi tiiUeii be iifore .*?. Xo steps shall be tak<'n in any department To wards the issue of any letters patent or supjjlementaiv letters patent nnder this Act. until after all fees there- for are duly paid. j^\in state- S5. The directoi's of everv companv shall lav lie- llU'Mt of atTdiisat fore its shareholders a full iM'inted statement of tin' €>aeli nii'et- int; for fiei- affairs and financial position of the companv at or befoiv tious. •" each j^eueral meetiu}.!: of the company for the election ni directors. iiccoi'diiii: ic ciiitiml II ( 'oillicii Cii. IV.),] rORM A. , /I"''';^.7;,:, "'''■'■'■'■•>■«■- .,■■■77,,., . •'"'"''' '"'Jinno ,1..,,,. ,, Ti 4. t "Olliil's .'r" """■:;::;;'•""- --.ors,,.; .,,„. A. 15. Si'crrhi I'll- FORM B. ;''l;-l», .n,v,iv,.n, ,,,,,,,„,,,,.,..../,,. r --.I u„„:,. ,;■':,"'••;■ !'■'"- i-'-m •• „ Dated at tJio A^iura at tiio office of flu. sj ada this ,j,, J^ ""^ '^'* ^^n,'Uvy of Sfnte of Tan- A. I!. t^cm hin/. rORM c. Public noficfi ;« i,r„.. i 4(;;{ I! I:!' f< ' i ■ V i li ;i i 40-4. I'ltKFKUKNCI-: STOCK MAV ItH Clti: \1 IID. (Cli. Ill' (liiy of wllt'i-cliy lilt' lnt;il ciipiliil slock of \lirir sliih' llir iniiiir nf llir ( 'm. /I'lin/l is ilinTiiSfd [or I'cdilt'cd, lis llii' filsr liKlil lir\ fl'dlll (lollilt'S to (lollilfS. I)llt«'niit(' and House of ('omnions of ('an;it('i' IIS, or Tin' ('(iiiiiHinii's' .1(7. chapter 11!) of the Hevised Statutes, is ajtplicalde, may make a by-law for cicatinf;- and issuiiii: any j)art of the capital stock as prefei-ence stock, «j;i\iiiu th<' same such preference and ju'loi-ily. as i'es[»ecls di\ i- dends and in any other respect, over oidinary slock is is declared bv the bv-law. 2. Tlu^ by-law may provide that the holders <>f shares of such preference stock shall have the -ifiht i* select a certain slated projiortion of the boai'd of diif - tors, or may ^ive them such other control over the affairs of the company as is considered expedient. (tf Ciiii rrrhini. Ch. 40.] ruKATioN* or imikkkiikntk stock. 465 ). s .Vet aivl .7, 7N'''M- consent hI' of ('iini\"l:i- lirccloi's I'!' IS, or ■/ •'" s. i^ Salute luul issnii <>( Vlll'i ll'V IK'l :{. \(i snrli l»v-ljlW sliiill lllivr iinv folrc ol- i'\\*'r\ '["viictloii wliiitcvt'i- until al'lci' it Inis liccii nnaniinnnsly sunn idncil 'ii>i'i«»i. I»_v i\ vole of tin' siiiii'ciioidcis. iircscnt in prison or l»y pi'oxy iit it ;;('m'rjil incctin;; of the conipiiny duly cnllt'd for r((nsidciin^' llic sutnc iind iciticscnlin;; I wo-liiiids of tlio Htociv of tlic i-onipiiny. or unanimously sanctioned in wiilin^i' by the shaielioldeis (d' tlu' e^nnpany; provided, liowt'ver. that if the by-law be sanctioned by not less than tlii'et -fouitlis in value of the shai-elnddeis of tlie mav, if he sees tit. approve thereof. ;in •!'., MuU ap|>roval the by-law shall be valid and ma he aeled ui»on. ■t. Holders of shares of such preference sttnU -'lall ,"'"', It.^ of Imlilcrsof ^toi'k. be sharelnddei-s wilhin the meaning: of the said .\cis. or i'.'''^ eithei' of them, ami shall in all respects jiossess the rijihts ami be subject to llic liabilities of shai'eholders within the nieaninji' td' the said Acts, or either of them; provided, however, that in respect of dividends and in any other respect declared by by-law as aulhoii/ed by section 1 of this .\ct they shall, as ajiainst the <»rdinaiy shareholders, be entitle*! t<» the preferemes and rii-hts ^iven by such by-law. ♦5. Xolhinu contained in this Act (U- dcuie in pur-^j'^^' suance tlieretd" shall alVect oi- imjiair the rijihts of credi- tors (d' the com]»any. O. This Act does not apply to any insiiiam-e com- ji'iny Ol- trust c(Mnpany. in;; list'. holders I't Ihe '.i^bl "* w.s.n, M.— 30 I «{■ i^J QUEBEC ACT. Eevised Statutes, Quebec, 18&8. title xl, chapter iil 1 t. SECTION II. IXCOUrORATION OF JOLNT STOCK COMTAMES. § 1. DccUiratoi-i/ mid liilrriiictotirc. 4694. This s 'ftioii may lie ritod as " The .Juiiit Stuck Coin- panics' Int'orporatiou Act." 4695. Tho following; expressions, in this section and in ail letters-i)atent and snpi)lenientary letters-patent issned niider tho same, have the nieaninfjs lierel)y issi^ned to them, nnless there is somethinf; in the; snhject or context repugnant to such construction: 1. The expression " letters-patent " nu'iins tho letters-parent incorporating a company for any purpose (•ontemi»lated by this section; 2. The expression " supi>lenienlary letters-patent" moans any letters-patent granted for tho increasing or reducing of tho capital stock of such company, or for changing its name; 3. The expression " comiiany " means tho conipmy so incor- porated by letters-patent; 4. Tho expression "the undertaking" means the whole of the works and business of every kind, which the company is antliorizid to c.TU'i' on; n. The expression " real I'state " or " land " includes all im- movable property of every kind: 0. Tho expression " shareholder " or " stockholder " means every siibscrib(>r to or holder of stock in the com|)any, and oxtenils to and comprises tho personal representatives of the .shareholder. R. S. Q.] NOTICE UXDEH QUEHKC ACT. 467 ES. jck Com- hi nil idl".' tllL" tlu'iv is by this •uns any ,0 caiv.tal so iucor- l,v of thp luthovizcd all iiii- nioniis I'hoUlcr. § 2. (InnitiiHi of tlir Chartrr. 4696. The I.ifHlfii;ml-<;i>V('rnnr may, tiy Icttcrs-iintciit under thi' (Jn-af: Seal, iri'aiit i cliai-ttT to any iniinlicr of persons, not less than live, who in'titinn thorefor. Such cliarter onnstitutcs tlio petitionci's and all others wlio niiy Itoconio sharelmhUM's in the cunipany tiiereliy crented a liody jxiHtic and corporate for any of the juiriiitses witliin tlie jnrisdiclion of thin T.eKlshitnro, except for tlie (■(msti'nctlDn nnil wni'kinir of railways iind tlu' linsiness of iii>;nrance. -. It is not necessary tliat an order in council lie passeii for frrantini.' any such chartei-, )iut tiie Lientenant-fioveruor injiy j.'rant any cluarter upon a favourahli- report from tiie Attorney-* ieneral. 4697. The applicants for sncii h'tlers-patent sliill pi'eviously fiive notice of their intention to maki' sucli application. Such notice shall he i)ulilished during four consecutive weeks in tlie Quchrv Ofjiridl Onzritv and contain: 1. The corporate name of the projiosed coiuiiMuy. wliich sliall not he that of iny otiier company, or any name lialde to he ccui- founde(l therewitli or otiierwise on public (.'I'ounds olijectionabh'; ■_'. The object for which tiie iuciu'poration is soULrht ; o. The place, witliin tlie limits of the rrovince, selecteil as its ohii'f place of business; 4. The proposed amount of its capital st"ck; r». The number of shares and amount of each share; . The a.irKi'ov'a'i* cf the stock so taken must be at least one-half of the total amount fif the stock of the company. 4. The airi:i'ey:ite so paid in thereon must be at least ten per- cent. tlier(>of, or live per cpnf. of the total capital: unless such total V'i 468 QUEBEC ACT, [R. S. ij. W' I ill'; ir \[:: !l * W ; i: !;i I, m v\rov<\ five IniiKlrt'd tlioiisj\ii(l diillars. in \vliie einlMi(lir(l nny i)rovisn)n w in :iny hydaw of (he eoinpany when ineorporated. 4600. Hefore the letters-patent are issued, the .-iiiplieaids nuisf estnlilish to the satisfaetlon of the I'rovincial Secretary or of sibh other otiieer as nniy he eh.-ir^ied liy order of the Iiieutenant-( Jovernnr in Council to report thereon, the sulliciem-y of their notice and petition, the truth ami sniliciency of the facts therein set forth, and further thit the .•ippiicants. ami moi'c es|)ecially the provisional directors n.'imed. are persons of sulliciently reputed means to war- rant tlu> application. li. 'I'o that end, the seci'etarv such other otiieer n lav lal and ket'|) of rectu'd any rtMiuisite evidence in writin;; iimler 0,1th or atlirnnition. md may administer every requisite o;ith or atiirmai ion. 4700. The letters-p.-itent shall recite all the material iiveriuenl-; of the notice and iietition. as so estalilished. 4701. ''"he Lieutenant-Governor m.ay, if he deem it expedient, vive to the company .a n;ime ditTereiit to ih.it chosen for it by tlie ;tpi)licanls. if such rame lie cdijection.aldc. and m.ay ju'esci-ihe thai the ohj(>cts for which the comp;iny is coustitnted lie chiUiired. pro- vided that they lie of the s.ime n.ature as that iriven in the notice. 4702. If it hai)pens that the n.ame id' .a compjiny. coustit iiieil as afoi'i'said. is the sanu- .as thit of any other cNistiui; <-ompany. ^v so lu'arl.v r"sendiles it as to he liiihle to create confusion, the I.ieutenant-tiovernor may oidei- the issue of supplementary letter^ p.'itent to <'lianv:e the name to .another to lie chosen. Sm-h supplenu'Utary letters-pitent shall I'cfer to the fornii'V letters-patent. Such chanire of mime shall not atVect the I'i^dits or otiliirations o( the company. 4703. ^^'heneveI• a company, incorporated iimh'r this si'ction. desires to have its name chau^red foi' another, the Taeuteiiant- dovernor m.ay, oi\ petition to th.at effect. >:r,int snpplenieufary R. 8. Q.] OENEltAL POWERS. 469 li'tti'rs-i'jitcnt, if In- (Icciii tliiit mkIi chiui^i' of mjiiiu' is nni iijinlc fm* suiiu- uiiiiVMUcil or iiii'uiliiiMilc iniripusc; wliicli it'tlci-s-|)iilfiit siiiill 1m' niiiilc ill tile III niiuT- pnividfd in the iiriMcdiiii; iirliclc, aiiil siiail have tlic sMiiif flYrct tit all iiitciiis ami piiipust^. 4704. Notice of tile irraiiiiiiK »( tlif Ictlcrs-patciil siiall bo fortliwitJi ;.'ivcii liy the rroviiiciai Sn ivtary. in the QmU<<- Offt'iat f/'(/cv//c, ill till' form of tin- Si-lu'ilnic A. of tiiis srction; aiul tiii'rc- niioii, from tin- ilatc of tlii' lottfrs-pati'iil, tiic persons tlierein named iiiid their siieeessors shall lie a liody iurporite and poliiie liy tlie name mentioned therein.' § 3. (Ivinnil I'mcrrx. 4705. ICvery company so im-oiporaied may aciinin hold. nlieiiate and convey, any real esiati- requisite for ilir carrying: on of its nnderttikini:, and sliill forthwith lieconie and lie invested with all rights, r»'al and person.-il, tiieretofore held liy or for it under any trust created with a view to its incorporation, and with all the powers, )irivileKes and immnnities reipiisite to the carrying: on of its tindertakinu, as thoii;:li incorpor.'iled liy i charter fniin the l.e>:is- latiire, niakinj; i; liy that name a liody politic and corporate, and eniliodyin;; all the provisions of this section and of the letters-patent. The conipany may, liy a simple resolution, issne notes, piyjihlo to order or to liearer, for the settlement of accounts or other current matters: it may further, on a resolution of tli" two-thirds of the actual shareholders present at a nieetinir specially convened for the imrpose, issue lionds or delieiitnres to the anioi.nl of the two-thirds (if the total value of the imniovilile property. Such lionds or delieiitnres, after their rej.'istratioii in the otiice or ollices of the re;,'ist rat ion divi:.ion '•¥ divisions in which tho imniovaliles of the said company are sitiijited (which must lio descrilieil in a notice to that ctTect iriveii to the re;.'istrari, constitnto a privilcKi'd claim in favour of the holders thereof ,i;riinst tlio company, and ;;ive a rijriit of preference over all other delits and claims a;:;iinst the company, imsterior *o tli" issniny: of such delieii- tnres. 'J'hi.f oinl iircfrdhiii iifinnirniili iitdcliil hii .'I'l W c. •?). s. 1. 4706. The directors of the conip;iny may, if they see tit. at any time ifter the whole capital stock of ti'e company has lieeii allotted and paid in. Imt not sooner, make ji liy-law for increasing the capital stock of the company to any amount which they iiniy con- sider reiinisite in order to the due carryinv' out of the objects of the company. '_'. Such liy-law shall declare the nnnilter iiul valiio of tin- shares of the new stock, and iirescrihe the inaniier in which the same shall be allotted: in default of its so doin;:, the control of such allotment shall bo held to v«'st absolutely in the directors. .w I- 470 gUEUEC ACT. [R. 8. Q. 4707. Tlic directors of tlic (•(uniiniiy, if llicy sec fit at any time, may inak*> ,i l)y-la\v for decreasing llie caitilai stock ol' the company to any amount whicii tlicy may consider snilicient in order to ilie line carrying out of the uiidertakinj; of tiie coiniiany. and advisalde. li. Such Iiy-lnw shall declare tli(> nninlier and value of the shares of the stock ;is s(» decreased, and the allotment tliereof, or the rules by which the sanu' shall he made. 4708. liut no liy-law for increasiii); m" decreasin;: the capilal stock of the comiiany shall have any force or i-lTect whatever, until after it lias lieen sanctioned hy a vote of not less tlun two-thirds in amount of the sliarehohh'rs at a general meet in;: of the comiiany iluly called for considering; the same, and has afterwards l)een con- tinned l>y suiiiilementary letters-pjtent. 4709. At any time, not more than six months after s\ich sanction of such hy-law. the diri'ctors may ix-tition the Ueutenant- Gorernor through the Trovincial Secretary, \\>v the issm- of su|i|)lt>- montary letters-patent to confirm the same. 2. With such petition they must produce such hy-law. and estali- lish, to the satisf.-iction of the Secretary or of such other ollicer as may he charped by order of tho Li(>uteiuint-< .ivermu- in Couucil to report thereon, tlie due passage and sanction of sm'h by-law. and the hima fiitc character of the increase or decrease of capital thereby provided for. 3. To that end the Secretiry or sudi officer may take and kee|i of record .'iny reiiuisito evidence in writin;; under oath or allirinatio!), and may administer every rciiuisite oixlh or allirmation. 4710. Upon due proof so made, the r,ieiitemint-(!overnor may grant sucli supplementary letters-patiMit under the (ireit Seal: and notice thereof shall be fcu'thwith y:iven by the Provincial Secri'tary in the Qiwhcv Official (Inzvttc, in tin- form of the schedule H. of this . section. 2. I'^roni the date of the supi)l(>mentary letters-iiatent, the capital stock of the company shall be and remain increised, or di>creased, as the case may be, to the amount, in the manner, ami subject to the conditions set forth by such by-law; and the whole of the stock as so increased or decreased, shall become subject to the provisions of this section, in like manner (so far .-is may be) as though every part thereof had formed part of the stock of the company originally subscribed. 4711. All ))owi'rs given to tlie compjiny by the letters-patent and supplementary letters-p.iteiit granted in its behalf shall be exercised subject to the provisions and restrictions contained in this section. H. S. Q.] DIiaXTOUS. 471 § 1. hircclorn, 4712. 'l"li(> iiffiirs of tin- cuinitaiiy sliiill lio iiiiiniiK»'tl li.v !i l»'iii(l of not less tlitiii thrt'c, ov iiinrc tliiiii iiiiii' ilirt'ciurs. Tlic persons naniiMl jis siicli in tin- Icttcrs-i'-'i'*'"' shall In- tlir ilircclors of ihc fonii'jiny. nniil rcpliui'i! liy oilirrs dniy niuncd in their stead. 4713. No i)erson shall li,' elected or nanu'd as a director thi're aft( nilless he h dd PC a sh I I'eholder. owning.' sto<',< a lisidulely in hi> own i!if,'lit, and not in arrear in respect of any call thereon. The major part en deposited with the Provincial Secretary, iind publish- ed in the Qtubvv Offiiial Ciuillc. This Nrrliuii viKictcd by .^N I', c. .77, 4714. The after-directors sliall be elected by the shareholders, in irener.-il meeting of the cumptny assendded. at s ich times, in >:nch wise, and for such term, not exceedin;: two years, as thi' letters jiatent, or, in default thereof, the by-laws of the company may prescribe. . 4715. In default otdy of other (>xpross provisions in such behalf by the letters-patent or by-laws of the comjiany: 1. Such election shall take place yeirly. all the miMnbers of the board retiring,', and. if oth-M" (dection: (|Ualifie(l. liein;x eli;:ib!e for r( li. Notice of the time and idace for holdinj; ;:eneral meetinsrs shall bo jriven at hwst ten diiys previously thereto, in smiie news- paper published at or as near is may be to the otlice or (ddef place of business of the company: I?. At all sreneral meetinirs, every sharelnddei- slndl be entitled to as many votes as ho owns sliares in the company, and may vote Py proxy; \. Elections of directors shall be by bAllot: 5. Vacancies ocenrrinj: in the board of directors may be filled for the unexpired remainder of tlu> term, by the board, from amon;:; thn (lualitied shareholders; 472 QUEBEC ACT. [R. 8. Q. n. The directors shall from time to time elect from amonn them- selves 11 iiresiileiit ; mid shall also name, iiid may remove at lilcnsure, ill other olllcers of the comiiaiiy. 4716. If at any time an election of directors lie not made or do not take effect at the iiroper time, the I'ompany shall not lie held to lie tliereliy dissolved; lint such election nniy tiUe place at any general nn-etin^ duly called for that purpose; and the retiiin;; directors shall continue in olllce until their successors are <'h'cted. 4717. The directors liave full jiower in all thin;rs to adnvinistcr the alTairs of the company, and may nnike or cause to lie niide for it any desci'iptiou of contr.ict which the company may lawfully enter into; and may from time to linie nuike liy-l.aws not contrary to liw, or to the K'tters-patent of the company, to re.i,'ulaie: 1. Till- allotnu'ut of stin'k; 2. The milking of '-alls thereon; 3. The payment of calls; 4. The issu<' and registration of certificates of st. The forfeiture of stock for non-piiynuMit ; (5. The disposal of forfeited stock and of the jiroceeds th' eof; 7. Tile transfer of stock; 8. The declaration and payment of dividends; '.». TIi(> numlier of directors ind their term of oHice; 10. The anionnt of tlu-ir stock (lualitication; 11. The apixiintnieiit. functions, duties and removal of all agents, oflicers and servants of the company; 12. The security to lie niven by them to the company; i;5. Their remuneration and that of the directors if they have a ri>;ht thereto; 14. Tlu" time it which and the place within this Province where the annual meetings of the company shall lie held, and tlie places where its liusiness slnill lie conducted; ir». Tlu' eallin;.' of meetinjrs, rej;ular iind special, of the hoard of dircH'tors and of the comiiany; Iti. The conduct in all other ))articniars of tiie afTairs of the company. They may also, fro time to time, amend or r(>-enaet such by-laws. Every such bydaw. and every n-peal, amendment or re-enact- ment thereof, unless in the meantime contirnu'd at a ).'eneril ineetiny: of the company duly called for that, purpose, shall only have for<'e until the next annual meeting of the company, and in default of conlirmation thereat, shall, from that time oidy, oeise to have force. R. S. Q.l DIUECTOUS. 478 ■1717'(. Thi (lir)e(iir* Kimiahn huiki Uii-huc.i fur innHiinj miu part of llo ■'i/titiil ulark K.t iirifi rml Muck, nivin'j tin iitdi p n t'l n iii'i ((.s In (li ri'li »''>' Kill/ (itll rnri.'*) iivir on linnrii Ktark <(.< ia( ilir ('onii)aii.v lias, at all tiincs, tlio riirht to call n >ptMMal nu'ctiiij: tlimnt'. for the transaction of any Imsincss spcciticd in sudi written requisi- tion 111(1 notice as they may issue to that effect. 4722. The <'aiiital stock of all joint stock eninpanies shall con- sist of that portion of the amount authorized liy the charter, which shall have heen houA fldv suhscrihed for and allotted, and shall h- Pttid in cash. 'I'he amount of paid-up ciiiiital, from year to year, shall lie pnli- lished annually in a report of the shareiiolders of tli(> Comiiany. L'. '{'he lu'operty accounts of a coiniiany shall vepi'eseiit only the amount of the actual hom'i fiilr outlay necess;iry for the undei- taUinj,'. \o stock shall lie issued to represent the increased vilue of any proiierty. .Vny such issue shall lie null and void. 8. 1'he jiractice. commonly known as waterint: 'if stock, is pin- hihitod, and all stock so issued shall lie null and void. 4. 'I'lie cajiitalization of surplus earninfrs, and the issue of sioilc to rei)reseiit sucli ciiiitalized surplus are also prohibited, ami ail stock so issued shall 1 le null a nd Void, anil the directors conseiitii to such issue of stock shall he jointly and severally lialile to the holders thereof for the leimliiirsi'meiit of the amount paid fni' such stock. .'. Every form and manner of lictitious caiiitalizatioii of stork in .'iny joint stock (■iiipany. or the issuini: of stock which is nor represented by a legitimate and nec(>ssary oxpeiiditure in the iiit t- est of such company, and not represented by an amount in cash paid into the treasury of the company, which has been expended for tlie promotion of tho objects of the company, is prohibiti'd, and all sucii stock shall bo ludl and void. 4723. Tho stock of the roinpany is deemed to be personal ostito, and shall b«> transferable, in such iranner only, and subject to all such conditions and resii'l-tioiis. as by this section or by tlu* lotters-pntont, or tho by-laws r ;il Interest sliiiU ilcerue iiul I' ••ill (I lie. Ill till' I'lite III six per cent. per iimilUli, llpuu tile illlloinit nl' niiy imp:liil e;ill. Irniil tin- (i:iy {iltiMiiiiteil t'lir the iPiiyineiil nf oiic iir inure cii lis, he cilllc.l III am! e ccini- iiiinlc piiyalile \\iiliin nne year liniii the iiirnip(,i-ai i,i|i ,,{ th pany. For every yi';ir therealtcr. at least a I'lirllier five jier cent, sliall in like niiniier lie calleil in and made pa,\aMc, until oiie-nall' has licell so called ill. 4727. The company may enforce [lav imnr ot' all cnlN ind int cr- est thereon, hy action in any competent court: ainl in sinli action it shall not lie necessary to set I'oith the >|iecial matter, luit it shall lie stilllcient to declare that the defendant is a holder of one slmre or more, statii'iir the nnmlier of shin d is iiidelited ill the suiil d' money to which the c lie sli ills in ari'car anioiini. in respect of one c;il or more upon one snare or nmn -taiiiiu' the niiiiilier of cills and the amount of each, whereliy an action has .accrued to the cmnpiny. A certiticate under the seal of the company, and purporlini.' to lie si;,'iied hy any of its ollicers to the elTect that tlii' defendant is a shareholder, that su>h cills have lieeii made, and that so much is due liy him thereon, shall he received in all courts as luimi'i facir evidence to that olTect. 4728. If. after such demand or notice as hy the letters-patent or hydaws of the company may lie prescrilied. .'iny call made uiion any share or shares he not paid within the time prescrilied liy \h>- lelters-p.ateni or hydaws. the directors, in their discretion, hy vote lo that efTcct. recitin;: the facts and duly recorded in their minutes, may summarily declare forfeited any shares whereon such i>ay- incnt is not made: and the same shall thereupon hecome the prop- erty of the company, tnd may he disposed of as hy by-law or other- wise they shall m-dain. 4729. No slmre shall he iiaii shall not be liable to an action therefor by any creditors, bid'orr- an execution a.uainst the <-oiiiiiany has been returned unsatisfied in 476 QUEHEC ACl'. [11. s. g. Ui ,ii;' wliiilc> III- ill piU't: ami tli<' iiniiiiiut iliu- on siuli cxt'ctitiini sinil Im> the aiiioiiiit rt'CMvriuldc, with Cdsts, iiKiiiiist siirii slmrcholdiT. 4732. 'I'iic shiirt'h(ilil('i-s siiiill not as siicii lie liold rcspoiisilili' for any act, ilfraiiil or liaiiility wlialcvcr. of the coniiiiny, or I'nr any I'liK'U^tt'iiuMil. tlaiin, [laynu'iit, lo«;s, injury, transaction, nialtiT or tiling whatever, n-latiiiK to or comiecteil with the coiiipaiiy. lie- yond thi- ainonnt of tlieir rcsiK'ctJM' shires in tiie caiiita! stodi thereof. 4733. No person holdinfi stock in tlie conipany in the naiiie of another shall he personally siiliject to liaiiility as a shareholder, Imt the estates and funds in the hands of such |iersoii. hi-loiiiiini: to the person he represents, shall lie lialde in like manner, ;uid to the same extent, as the person represented woultl he, if lioldin.:.; such stock ill his own name. 4734. No person holding: stock as colljiteral security shall he personally suhject to such liaiiility, lint ihe p.-rson plediiin;,' smli stock shall lie considered as holdiiijr the same and shall he liahle as a shareholder aceordinjrly. 4735. ]']very person holding and possessing shares in the naiin^ of another shall represent the stock in his hands at all meetinf,'s of the company, ;iiid may vote accordin).'Iy as a shareholder; and so with every person who pledK»'s his stock. S <1. lUvUhnds. 4736. No company shall declare a dividend, the jiayment of which infringes upon or less«'iis the caiiital of the coiui)any. No dividend shall he declared or iiaid, which has not been actually earned hy the comp:iny. '2. The annual dividend may. however, he siipiileinontcd or paid entirely out of the reserve fund: hut payment of the dividend in this way must he piihlicly aniioiinced to the shareholders at the annual meeting, and duly authorized hy i resolution of the com- pany. Ill default of such resolution, the directors of the company, votiiif; for ov consenting to such increase, shall ho jointly and si'ver- ally liahle to the creditors of the coniiiany for tlu' amount of divi- dend paid in excess of thit actually ciirned. 3. Should any dividend he so declared or paitl, the directors voting for or coiisentiiij: to the payment of such dividend shall he jointly and severally liahle to the creditors of such company for the amounts so paid. 4737. The directors, who declare and pay any dividend when the company is insolvent, or any dividend the payment of which renders the company insolvent, or diminishes the capital stock thereof, shall he jointly and severally liable, as well to the company K. S. Q.] BOOKS TO ME KKI'T. 477 as tn llif imliviiliiiil ^liiiri'linldcrs nml i ri'ilitnrs tlioiccii', I'cn' :ill tin- llu'ii fxisliii;: (Iflils (if the rdiiiiiiiiiy, miuI for all llifii'Mtiri' rini- trjictfil during' tlirir ((iiilimumcf in ollirr. Mnt if iiiiy diit'ctur present when sueli liividend is drehued ilo f(Piili\vith. or if any direelur liien .ilisent du williin i \veiii\ fniir llunrs aflef lie siiall iiave lieeunK- MWai'e llleleipf nid alile SI) In cIm, enter on tiie niimites of 'he Imird ■if difeelnrs ids iirolest airainst tile same, ami do witinn eiirlit days ,;\eieaflei iiMldi>li sueli iiiote>l in at least one newspapei- |iiilili>lie'' it, or as near as may i'c possilile to, the otliee or eliief pla' shall he liilile to tlie creditors of tlu> company, in llie same manner ami to the same extent as the transferrin;;' shareholder wouM ha\e lieen, hut for such entry. l-Jut if any director, present when such entry is allowed, do forthwith, or if my directoi- thei\ .Mlisent do. within twiMity.four hours aft(>r ho shall have liecome awiire thereof, and aide so to do, (>iit('r nil tho minute book of the lik "(' - lllliy he |iii>isililc to tln' utllrc (ir cliirf |ihii'r iif hil>in('.<^ (tf 111.' i cilll- liiui>, siich (lii'i'ilur limy llicrrliy, jiinl imt dI Iutw isc, cxoiicraii' hiin- s<'lt' t'l'iiiu siii'li lialiility. 4740. Nti iniiisrcr nf stufk, iiiilfss miikIi' Ipv sale nntlfr ixi'in- ticpii, sliiill 111' viiliil I'lir any piirpiisc wliiiii'Vi'i'. vivc mily as i'\liil,ii- iiiK till' riulil'^ III' till' |iai'ti('s tlii'i'i'iu towanls rarli ntlii'i', ami I'x ri'iiiU'riiiK the triiiisrcrt'c lliililt- ml inhriin Jniiitly ami srvi'ially wiili till- traiist'iTiir, tu tlu' rdinpaiiy iml liirir ni'ilitrn's until nuiy tluTciir lias liccii (Inly niaili- in siirli linnk^. 4741. Sncli liiMiUs nIuiII, ilnrin;: rrasuiiaiili' liiisincss lionrs of I'vcry ila,\', except Siimlays ami Imlidays. lie iii'iil open I'nr the iiispi'e- tiiiii of sliai'eliolilers ami ereiliiofs of tile coiniiaii.v, iml their cepro- .seiilalives at tile olliee or iliicf plaie of Imsilless of tile eolllpail.V. Mvery siieli sli i relioliler iiinl ereiiitof, or ijirir representatives, may make extracts tlierofroiii. 4742. In any suit or proceedin;: ,i,i.'ain The same may stand in the hooks of the company is ii v;ilid and hindinj: dischar^re to the comi>aiiy for my dividend or money payahli> in respect of such shares, ;uiil whether or not notice of such trust lias heen Kiveii to the company. The company i.s not hound to see to the applicntion of the money paid upon such receipt. 4746. Every contract, nfrrcoment, onjra.cenient or barsain m\de. find every bill of exchange drawn, accepted or endorsed, and every promissory note and cheque made, drawn or endorsed on behalf of the company, by any njjent, oflicer or servant of the company, in Keneral accordance with his powers as such under the by-laws, .shall he binding upon the company. ^1 ^ 1!.S.(,M NlllS. 470 IC.lllH.V t'vory injury >n I'lif Ititm I'l l\w A ot lio limy ■S( ■hiir;; 111 jiivcu of tho ll every Ihalf of Iniiy. i" Ill ii(» east' ^li:ill it lie iircfNMiry tu Ikivc iln' m'mI <>( tin- rcnu- iiiiiy iillixi'il III liny ^iii li cuiiiriii'l, iixriiiiii'iii, ciiu' i u'l'iiuiil. IimiuiiIii, iiill uf exili.'iii;.'!', iiiiiiiii>>iiry iinii- ur rliniiii', ur III |irii\c iluil lln' saiiie \viis iiiMili', liniwii, ill ri'iiiiij or riMlnr^i i|, us ilir ciisc iniiy be, ill iiiirsiiaiici' 111' any liy-liw ur special vnie ur niilcr. The |iart,\ so acting' as au'i'iil, nlliccr ur srrvniit <>( ilir euin. paiiy, siiall nut thni'liy Kr siilijciiiil inr^uiiiiHy lu uny liahility \vlial('\ IT tu any tliiiii imiy llaMvlur. I'l'dviili'il al\va\s, iliMt iiuiliiiii; ill this ariiiji' shall lie emistt'iieil III aiiihui'i/c till' cuii'ipany tu issue au.v iiule pa.valile lu the liearep iheieur, III- iiiiy priiiiiisMiry nuie iiiiemleil lu lie (irriihiid as iiiuney, ur as the iiute uL' a liaiiiv. 4747. Nil euinpany shall i|se any uf lis t'liiids in the piireli ise t\( stuek in liny uiher cuipuratiun, unless hi so far us sinh piir- eliase , y he speeiilly ant liurizeil liy its charier mid ;il>u li\ liie charter ■( sinh ntiier curpuratiun. ^ 11. .Sails. 474S. Any descripliuii uf aetinn iimy lie piuseeiiied ami niiju- taiiied lietwceii the euinpany and any sharehulder linreur. -. Nil sharehiilder, imt heinc himself i party tu siieli suit, sliall lie incuiiipetent as n witness theicin. .'!. Service uf all inanncr uf sniniiiuiis i>v pruecediiiy;s wliaievir nimii the cuiiipaiiy may lie made liy leavin;; a cupy Ihcreuf at the ullice ur chief plaee of luisiness uf the euinpany, with my :;ru\vii persuu In charge tllereuf. ur elsewhere with the lirrsiilelll an 1 ^ei- retary thercuf: ur if tie i.unip,iii>' have im knuwn ullice ur chii'f place uf liiisiiiess, ur have iiu knuwn iiresideiil ur secretary, tleii, npi.n retiirn tu that elfect duly made, the cuin'i ur .iiidi,'e urdcrs such piililicaliuii as it iniy deem rei|iiisite tu lie made in ;li' prem- ises, fur at least one niuntli, in at least uiie newspaper. Such imblicatioa shall be held tu be due service iiiiun the cum- rnuy. 4749. In any netjun ur any other leiral pror'eediiijr, it shill not be reipiisite tu set furtli the iiiude uf iiicurpuratiun uf the cumiiany, otherwise than by nieniiun uf it under its curpurale name, as in- corporated Ry virtue of letters-patent ur uf letters-patent and siipple- inentiry letters-patent, as the case may be, under this siwtiun; ami the notice in the QikIho Offli-ial tin^inc i\( the issue thereof shall bi; prima facie proof of all thintrs thereby declared. On pruduetiun of the letters-iiatent or siipiileiiienlary letter.s;- pntent themselves, ui- uf any exeniidilication nr copy tliereuf under the Great Sonl. the fact of xiich imtice sIi.tII In- presumed; and, save only in any iiruceediiii,', by srirr fuciafi or otherwise, fur direct inipeachnient therey iimi- iiscr (liiriiiLT th.'t'c cDiiscciitivc yriirs iit iiiiy one. tinu>, oi- if thi' ♦•oinpiiiiy ilo lint ;.'() intii :iaiil oii iilililiealioiis for letters-paleiit and siiiiplemeiitary letters-iiateiit iindef this section, miy desi,i:iiat(> the deiiartiiniit or departmenis lliroii;ili wliii'h the issue thereof sliill take plaee. and may prescrilie the forms of iH'oceedinj;' and record in resp'cl thereof, and ail other matters rcipiisite for carryin;: out the olijecis of this section. ■_'. Such fees may he made u vary in amoiini, under nny rule ny rules as to the nature of the company, amount of capital, and otlici' wise, that may In- deemed expedient. N'l step shall he t iken in any deparlmein to\vard> tl le .'s-'li oi an ■tters-pateiit or supplementary let' 'ts-iiateiit iindei' Ihi^ tior.. until the anion lit of all fees liierefor • all have lieeii duly paii 1 , I 1 ! I 111 ! I 'I |i rr Secrictakv's ()|-FU'E, (Juehec. r,th DecemlMr, ISlC'. His Honor the Iaeiitenant-(!overnor h;'s lieeii pleased, hy (>i(l.'r in Council, dated the lird of Deci'inlier instant, to amend (tidir in Council .\o. li(».~», of the L'Ttli f the Provincial Secretar.v' and Iteuistrar. hy strik iiil;- op.: Article litl, and replaciiiir the whole of Arti<'J(l(>.(Mi(t m' over, hut under .*<.'(l( >.( » H I l.'O (10 1!>. When the proposed caiiital stock is .stiUO.dOO or over, hut under .«<•_'( mi.im hi lOii (111 "JO. When the proposed cipilal stock is under .S1(M»,0(I0 -|0 00 21. On a|iplications for suppleinenlar.v letters-p.-uenl. oilier than those for increasiny' capital slock, the fee will be one-half of the amount pjiyahle on the ori^rinal letters- patent. When application is made for an increase of capital slocl<. Ilie fee will he calculated on the iictual amount of the increns;(' of smli capital stock, and will be the same as that payable on orif^inil letters-iiafeiit for an amount eipial to such increase. LOUIS r. PELLETIKIl I'roriiicidl i^mrtiii!/. H. 8. Q.] Fr iiiiy rt;- -i- X..s,„l, l,i„s,.a„ 1- p.vs,.,,,..,, for sanni, ^;"v..ri,or. „Ml,.ss th,.,v is ■ , , ■ ,■ *",' '^ "" '" ""' •''•'""•"•Tit- NH j.»,»is|,itn,. ( ,,|,ii,il ami L(...is|.|ii,-., v ,, "'»'-"..■ «i.- ■...-, ,. „„;:,;:;,:'.'■'""■" FOIi.M A Public iiotico is h,.n.|,y ^iv,,,, ,i, "■ "'"'•■'• ""■ •f"ii" .'^loHv Co,,,. I',, iss,,|.,l iiiid'.r puues I.,n,rporali„„ A,.. 1.., „.rs-pa,..,., l.avo ,„.,,, , tluM.rvat Sea, of tl... Provi,,,.,. „f ,,„„,„„, ,,„„.i„^ ,,^„„ „,,, '.''•' ".' • ""•"n'"r.Uiii;r ii„rr .slatr „„m,.s-, „,/,/,.,... runl call. ;'"""""";• ''•^- ""■ "••'■ '■ i'"'r st,ur ,.,.,, , ,,„ ,, ,,^ 'rtt,r.,.,uHcnti, witl. a „.,a, .apitai sto.^k „f , , this I»:U..d at tho ofH,.e of the S.-crotary of th,. P,.ovi,uv of d;iy oi Qiit.lioc, w.s.n.M.— ;h A. n., I'roriiicUil .Va/.(7(/)v/. 482 QUEUKC ACT, [K. S. (,). FORM R. Pnl)li(' notice is hoi'i'li.v j,'iviMi tliat, uiidfr tlic Joint Sloclc Coni- Itniiios' IndtrpoiMtion Aft, .Snpplcnit'nliiry IrttcM's-pati'iit liavc liccn this (lily issued niider the (!r(>at Seal of tlie I'rovinee of Qiieliec, beiiriiif,' date the day of . wliereliy the total capital stock of (here state th-e name nf the rmnpiitin/). is increased {or decreased, as the case may be) fi'oin dollars to dollars (or whereby the name of the said eonii)any has been elianucd to that of ). Dated at the oflice of the Secretary of tlie Province of (Jiicln^p, this day of A. H., I'roriiicial Ssiilent, when its chief ollice i.r iiriiicipal place ni' business is in this l'rovinc( l)y 111!' prin<'ii)al manager or hief ly branches or igencio: agent in tlie Province when it has on therein. 2. Such declar.atioii shall state the name of the company, where .and liow it wis incorporated, the date of its incorporation, and where its principal jilace of business within the Province is situated. 3. Such declai'ation shall \>o in the form or to the effect of form A of this section, and shall be produced by the presidi'ut or the principal manager or chief .agent, as the else may be. of every such incorpor.ated comiiany, and tiled within sixty days after com- mencing operations and business. 4. AX'hen iind so often as any change takes iilace in the nanu- of the company, or in its jirincipal place of busin(>ss in the I'rovinee. a declaration thei'eof shall in like manner be made, within sixty di'.ys from such changi' ((/). ((/) Tnder this Arti<'le comiuinies incori)orate(l outside the Prii- vineo nuiy do business in the Proviiu'e, ami under Article 4T(i'J tlu y are oniiiowered to tike and hold real estate necessary for their oceui)!iti(ni oi' the jiroseoition of their business. ». ' R. S. Q.] iJLiCLAUATlON lO UK MADK 4S8 4755. Tlic iifotlidiioliiry iinl tlic rc^^'isirnr sliall cnttT :iirtii('rsli.iiis. 4756. Tli(> pfothonotiiry ami tlii' rc^'istiar slial! lu' cntitliil tn a fee of one dollar for tin- entry ui' every declaralinii made under llie authority of this section. 4757. A failure to ni.ii^e and liii' the di'ilaiat i"ns rci|uiii'ntion of this seeticui has been instituted, tlun the com- pany making' iiml lilini: suf-Ii declar ition, its iiresident. prinripa! inaiia};er <>v chief .•i^.'cnt, as the case may be. siiall no lonirei- be deemed to have been in default. 4759. The tines imposed by this si'ction are recover;ib!e, before any court hiviny: jui'isdiciiiui in civil cases to liie amount of >ucli tine, by any i)erson suiiii.' as widl in h's own name as in the n.imc of II(>r Majesty, or by the Aiioi'ney-< !ener;il in the name of Her ^Majesty. 4760. Oiiedialf of all lines rcovered belon-s to the party suing for the same, md the other half lo the <"rown, and forms part of the eonsolidatecl revenue funil of the I'roviuce, unless ih,' suit bo broiiirht on behalf of the Crown oidy. in which lase ihe whole of the line sluiU belong;- to the ('rown (nv thi' uses afor.'saiil. FUl'.M A. I'rovim-e of (Jucbec, i l)istrict of ; The — (iitniii I -('ompan\ . The iiiiniK) Company was ineorpor;ited in muDit nf Ihr ciniiitrii. prnfiiii'c. ill-..) by i l.rlti r^-l'nh iit ur siniuli. tiiriini lill<. il'-..i 'jranied inr sanctioned or rcLdslered. us lln ckm imni In). lUi the \i}iiii\ Its priiii-ipal jilice of business in the I'rovince of (^Miebec is at (iifiinr of toini, ifc.l III testimony whereof, this de■■ ""' <">"' '""," '"' "'" ""' '^■''>i company, .i* Uiaiiic of place) mi the ('liitn 4b4 QUEHLC ACT [11. .S. Q. m I SECTION IV. SPECIAL PKOV1.SIUNS KKJ^PHCTINt! IJKUT.\I.\ CO.MPAN'I KS AND CORPOlJATKlNS. § 1. I'oirvrs of certain comiidiiu x to iliridi Unir cuititol nlork amt In (Wf/uirc (Hid hold real i'sl(ik\ 4761. Tt is lawful for the ilircftors of any ronipMiiy. of which the finital stock is diviilid into siiarcs liciii^r a unillii)lo of on<> hinulrcil, to pass a by-law declaring that tiu' capital stock of such company shall ho diviilcd into shares of one hundred dollars eacli, and. from and after the passlnj; of such liy-iaw such caiiital stock shall be divided into shares of one hundred dollars each. 4762. Every company incorporati'd and existing; in Great Britain (.«) in the United States of America, or in Canada, has the right to ac(iuir(> and hold any lands and real estate in this province, for its occui)ation or the prosecution of its business only, any law to the contrary not withstanding (7j,». 4763. No such corporation formed for ihe purpose of pro- moting art, science, religion, charity, or any other like object, not involving the acquisition of gain iiy the corporation or by the individual members thereof, shall, without the sanction of the Lieutenant-( Jovcrntu- in Council, hold more tluin ten acri's of land; but the Lieutenant-* Jovernor in Council may, by license under the hand of the J'rovincial Secretary, empower any such corpor- ation to hold lands in such quanticy and subject to such conditions as he shall think fit. (rO Th(> words " Great Britain " sh.'ill be read and interpreted as comprising and as having always comiu-i.sed the Channel Isbinds and the Isle of Man. Vide t)2 Vie. cap. 41. (h) Cnder this Article it is not necessiiry that comptuiies incor- porated outside the Trovince of Queliec, take o\it a license enablin:c them to hobl real estate in connection with the business carried o!i by them in that Province. Such license is recpiired only from .sudi corporations as are mentioned in Article 47<):!, and which desire to hold more than ten acres of land. FOREIGX CORPORATIoyf^. All foreign corporations duly authorized mider any foreign law to appear in judicial proceedings may do so before any court in the Province of Quebec, and may exercise all the powers given to them by the foreign states under the laws of which they are inc(>rpor:ited, provided such powers do not conflict with the laws of the Province. Code of Procedure, Art. 14. I'V TAXATION OF COilMEliCIAL COMPANIES. 1143. Ill order to provide f,,.- ti> service, ove.,. one of the l,,..' ' ""'""""^ ''' ^^'' '^"l^"'^ ^oin. business in this vZinT:Zir''^'''''' """ -•'•"-'-- ..nsLr'tlL-ir^'Tn^^r'^- -'•-- - -.• la.,o,., n.de or "-"^'--'' and speeiiied in .a ! ! nr'r ^ ''" ^'^^"^"•"' '-- I'"^t..I „pon each of sneh 1 '' '"■''■■^ "re herel.v ini- n-spcctively. ""' conunernal corporations and eon.panies oon.n.e'';,'e:p:;;;;;:L^:::;^ """"' "''■•" ^'"" '^^-'•"" •'^- ^"-^ Article ^4. JinTz^::^:^''''- ""■""""■^' -■" ^"-"-^^ '- I. I-NrOHPoiiATKI) I") One-tenth of •■O-MPANIK <'npital to o IK' inilli i>iH' iH'r cent. ni)on tl for eacli thousand doll; one hundred tli loii dollars, inclusi »<■ ainonut of tli ve "iisand dolla y, iind twenfy-livi- d (' paid-up oiian irs for ill sun f^ »v fract is over <'') An additioiuil one inillKjii dollar; >'"» "f one hundred fa t"-enty dollars f( '^tor.v or M-orkshop in tl tax of fifty doll; !•« for each iihir^e of 1 H- '"ties of Jlontrcal and Queh, )UsiiiO; overy o th "■ <'iich place of 1 ei* place; )nsiiie: factor '•', and of y or worksl lop ;n Copies of ti lis A( t. I- flio Honourable the I' <)riiis, (>t <••. may be I I'ovincial Tre '^'"■cr, gneli. "id Mil appl "•atioii to til. :' II !l.-^! H 03 VICTORIA, CHAPTER 33. All Act respectin,i2; Mining Companies. [AssiiiIkI Id l-liil Mil rill. lUHO. VAl Majesty, liy and witli the atlvicc and cDnsciit of the Lc^is- latiii-c ul' (^Jnclico, ciuicts as follows: SECTION 1. NAME AND APPLICATION OF ACT. 1. This Act may be «-iti'd as " Quebec Mining Companies Ail." 2. The provisions of this Act shall apply to minini; companies Avhicli sliall be incorporated by letters-patent issued under the Great Seal of the Province. 3. Saving the special i)rovisions hereinafter contained the Joint Stock Companies Incorporation Act, being section second of chapter tliird of title eleventh of the Revised Statutes, applies to luiuing companies. SECTION II. OF.NERAL POWICHS OF THF COMPA.NY. 4. "Witiiout derogating from the (Juel)ec Mining Law and -with- out in any way restricting its general powers, the company may: 1. I'ro'^pect and explore for mines and minerals; ~. Carry on all operations Ity which the soil, earth, rocks and stones may for the purpose of extracting any minerals whatever be mined, dug for, raised, washed, cradled, smelted, refmed, crushed or treated in any manner; render such minerals merchantable by any means whatever, and sell or otherwise disjjose thereof; '•'). Acquire, le.'ise. possess, ;uid alieiuite mines, mining land.-;, mining rights, preemption rights or any interest therein; mechanical contrivaiu'es, patent-rights of invention or the right to make use of such apparatus or patent-rights connected with the aforesaid pur- iioses ; 4. Build, maintain and exploit upon its own property or ui)on those under its control, telegraph and telephone lines, embaid;- mcnts, dams, Humes, can:ils, water-powers, electric, water and other powers, water-works, roads, factories, buildings, mills, warehouse's and stores necessary or useful to its operations; .". Exercise all the powers enumerated in Articles 51225 to 5"JI}1 of the Revised Statutes in the manner therein prescribed; Ch. 38.] CAPITAL AND SIIAHES. AS', (i. Miuiiifiictiii'c, liny niid sell all kinds of jjoods, mcrcIiaiHlizi', tools .'iiiil ainiariUiis rc(iiiii'cil by llic coiiipaiiy of its sorvants or workiiicii ; 7. Kuild. ac(Hiirc, possess, (liartcr and cinplny tlu' vessels ne<'es- sary for its opcMMlions and foi" llie transporl of ils [irodnets; S, Itei'eive in itayineiil for inineriils. lands, nierehandixo or worUs. shares, lionds, debentures or oilier seenrities issued liy any mininir coniiiany. and bold the same or dis[)ose tliei'eof; U. Ae(inife the as>;ets, enterprise, properly, privileu'es, franchises, contracts or i'i;.'hts of any person or c(inipany carryiiii: on any iii- dtistry or bnsiness which a company constituted niider this Act iiuy carry mi, ami pa,\' for the same by paiil up slnires in wlioir nv in part, if it s(t ilesire, and undertake the debts and chariri's appertaining: thi'reto; Iti. I >o all such acts and opei'atioiis .as are accesxiry to those above-mentioned, or which in;iy facilitate the attainment of the oli,jects for which it was incorporjited. 5. This seclion shall apply as well to coni|>anies wliiili sli.ill be consiitnted under this Act as to companies already existim:. SKCTIOX III. CAIMTAI^ .Wli SllAl^.i:S. 6. If .applied for in the iietition for the incorporation of the company or for snpiileineiitary letlers-p;itents, it is slated in the letters-jpatent that the shareholders incur no personal responsibility in cxci'ss of the anioiint of the price paid or a,i;reed to bo paid to the coiniiany for its shares. Such limitation of liability shall thereafter exist if no share of tho comiiany is issued under par or for a i)rice different from that previously iletermiiiod by the company, or if, beiiij; issued at a disrount or at a different rale, such discount or ritt> and all othi'i- terms and conditions, if any, of the issue are authorized by a bydaw of the company, .and that a duly certilied copy of such byd.aw be by reiristerecl letti'r t r.'insmiltcd. within two days of its having' been p:issed. to the I'rovincijil Si'cret.iry. L'. Such by-l;iw must lie r.aiitied at a meeting: of thi' shareholders to which they shall be called by a notice specifying the terms of the projiosed issue. 3. Every stock certificate issued by an incorporated company in accordance with this article shall b(Mr, under or after the name of tho company, tlu^ words, in red ink. " Tncori)orate refers to a share snlijcct to call, or tho words " Not subject tL'KIU;C MlMN(i ('OMI-ANIKS ACT. [Cli. '-^'i- R' h I, 4. Tho f'hartcr, iiiuspcftiis, stock (•crtilicatrs, liumls, nnitnict>i, nKrcfinciits, iiuiici's, ailvfrtisciiiouts and DtluT ollicial publii-atloMs of fvcry su( II coiiipaiiy, bills of t'XchaiiKt', promissory iioti's, oiuloi'si- iiu'uts, cluMHU's, orders for iiioiu-y or j;(jods, si;.'iii'd for or liy ilit- <-oiiipany, and ail hills of parcels, receipts and the sei! of the com- pany shall hear, after or under the name of tlie company, tlie words " No J'ersonal I.iahility." Ti. Every such comnany wliich refuses or nefilects to coini)lv with tlie provisions of the two iirecediii;; parairraphs is suli.ject to a fine of twenty dollars for each day durin;,' which such words are not printed or written; and (?very dirt'ctor or mmaKer of the' com))any who authorizes such default shall incur the like penalty. U. If a call remnins unpaid sixty days after notice or demand .f payment, the directors may declare the shares upon which the call is not paitl to he contiscated; and after such contiscation the sccrr- tary may sell the same at auction. 7. Sudi sale is announced hy a notice sent to the shareholder in default to his last known address, and inserted twice in a newspaper puhlished in the district in which the company has its head ollico or in the iu'i>;hhoriuK district if there is none in such district. Such notice shall state the numher of shares to he sold, the ntiniher of the stock-certiticates in resjicct iliereot', the name of ilic shandiolder in default, the amount of the calls due and unpaid, and the day, hour and place of th" sale. The siile cannot take place hel'ore the expiration of thirty diys after that <»f the first ptihlicatiou. If the proceeds of the sale exceed the amount due with in- terest and cost of advertiziuj;, the excess must l>e paid over to the shari'liolder in default. 7. Any coinptny incorporated under this Act may order, li\- hy-law, the issiu' of shares of its capital xtock at such rate of premium or discount and upon such terms and conditions as may be deemed advantajreous. Such by-law shall not become executory uidess it is trans- mitted hy registered letter within the two days after it is passed, ii> the Provincial Secretary, and unless it lias beiMi ratified hy a genera! meeting of shareholders as enacted in tlie preceding article. 2. Stock-certificates issued in accordance with the provisions of this article shall hear, in red ink, umler or .'ifter the name of the oonipany, the words " Incorporated under the Quebec Mining Com panics Act," and, if the shares were issu(>d under par. the words: " Issued by the Company at (mentioning the rate) % discount." 8. No share in a mining compiiny shall be issued under par. mdess under a by-law, in conformity with tlu> prescriptions of this Act; and every director, officer or agent of a company, who acts K Cll.3.'}.] 1>I1U:( TOItS KKSI'oN'SIIUI.nV — KKTUKNS. INK ((piitniry to tlH> prnvisidiis of this article, i<, lor "adi ofr('ii('(\ Jlatiu' to a tint' of one tiionsaml dollars, and. in default of payment, im- prisonment not exioedinj.' three months. SKCTIO.N IV. TiiniocTDHs' lU'.siMiN'ysiiiii.rrv. 9. Notwitlistandini: tiie provisions of this Act, the directors of the company are Jointly and severally liahle |c. the lahonrei's, ser- vants and apprentices of the coniiiany for all debts, not exceediniT one years" sal.'iry dne for services performed for the coinpuiy whils'- they .are snch directors, respectively: hut no director shall he liable to iin action therefor, nnless the company has been sued therefor \\'itlun one ye.ar after the debt becanu- dne, nor yet unless suili director is sued therefor within one year fmni the time when he ■ased to he such direcl(M'. nor yet before an execution mainsi the ciiiniiany li.as been returned unsatisfied in whule or in part. The nmount due on such execution shall be the amount recover- able with costs against the directors. 0( m SECTION V. RiyPL'UN'a, 10. In addition to all other reitirns which minini: cdiuitanies ...fiy be obliged to inak(>. o;ich such ciuuiiiiiiy shall transmit to the rrovincial Secretary whenever thereto rei|uired, by letter signed by him f)r his assistant, a statement showing: 1. The number of shares issued by it under this or any other Act; li. Th(> rate at which such shares were issued; 3. All other information re(iuired by the I'rovincial Sea-etary. Every comivmy which refuses or neglects to nuike the rettirii above-prescribed, when duly thereto reipiired, beooines litible to n lim^ of twenty dolla.s: and if the offence continues for more than two days, a liki' penalty for eai'h additional day during which tlio offence is continued. SECTION VI. MIXING COMPANIES IN("< lUPnH.ATKH fU'TSIPK THIS PROVINCE. 11. No mining company, the principal ollice whenvif is situate outside this Provimv can sell, or otherwise alieiiite. directly or in- ilircctly, in this rrovince. its shares, stock, stock-ccutificates, debentures or other se(airities. unless it h.as jireviously obtained an authorization for that purpf)se from the Eieutenant-Governor. 12. Snch authorization is given tipon petition, if th(< company: 1. Deposits in the office of the Provinci.al Secretary a copy of its ch:irter and of its letters-patent; lit 2;' 4f)() (^rKHKc MiNiN't; coMi'AXiKs ACT. [Cli. :]:{. hii ;!;;v fr'; U. 10s(;ililislics iiiiilcr iPMlli. it ri'(|uir('il. lluii il nwiis siilllciciil pritpcrty iiiiil cipiiiliuis its cipcrMi iiiis so as lo iii.Tii pulilic cdii- tidc'iRi'; 15. I)ci)i)sils ill llii' ollict' (if till- I'l'oviin'iiil Sc'it'tiu'v ii imwrr of (iltnnit'y iippoiiil iii^' a Kciicriil a^'fiil in liiis I'l liiff fur the piir- piisi" (if rccciviii;; scrvifc in ail actions an>l pri km •< Miners dilvcn af,'ainst it, and (Icclarin;; wiicrc llic iiriiicipa! (pllicr of liic coinpaiiy in tlii- I'rovinci' will 1k'. 13. Itt'forc tlio authorization is jrraiitiMl, tin- ronipaiiy sliall ostablisli, to tin' satisfaction of the I'rovincia! Secretary or of ;iny other functionary or otliccr oinpowored by order of tlie Ijieiitennnr- (Jovernor in Coniicil to repuri upon sucli mailer. Ilial liie fails allo^jed in its lu'tition are true and tlial it offers snllicieiil ^Miaraiilees to justify the ^rraniini,' of tlie aulliori/.atinii. For tliat ]iiirpiis<' the I'rovincia! Secretary or siicli oilier olliier may reipiire tiic iiniducl ion of any docunieiil wliich lie deeius lu'ces- snry, and talie and l publislied liy tlie rrovincial Secretary in tlie Qmhrc O/JIcial (liKrllr according to tlie form of Sdiedule .\.: and from iml nft^'r tlie jmldication of such notieo and of the deposit in the otiice of the prothonotary of the Superior Court of tlie district in whicli tli" chief ollice of the company shall he silualed of a copy if III Quebec Oflhhil (Inrrltc conlainin;; siuh nuiice, the company mav carr.v on the above mentioned business. ['poll receipt of such copy of the Qiiihrc Official precodin;; article. 16. It shall be lawful for the T-ieuleiiaut-rjovernor in Council, summarily lo cancel, at any time, for reas 11 of this Act, for a coinpiny which lias not complied with the formalities reqtiired liefore such oiieratious can be carried on in this Province, is liable for each iiifriii,ir(>nieiit tn a fine not ev- ceedin^ one thousand dollars and, in default of payment, an im- prisonment not exceedinj: three nionths. cii. .n] 491 :• -'•-^"' .::::;:;: J'"^^ ■ — ,„.,. '^""""'^''>- ■'K.l<...s . nis/ '--^ -"•""•""• -""LOS •„,i. A,.t ""•—en,,, ,„/^ ' ""■ •■•'.nuu.l ,•„,,,, ,s.,. „„„,i„^ „^ <^""vi.'tions n,,-..v I,.. ,.n,n,.„n,.,,l u 20. This Ar, shall ...„„.. iM,o ,•„,,„. '"' '"■ HHhnlll ,,,.,^ Is. "II I III' ih'i.v ,,r ii> ■^;iiiciiiiii. '""'IlKOrLi; A. I-'UM AhoxT.uM,,. ,x Airr.r,,,.: | ,. Thi' (iitimc) (■ ,11,,.. I , ^"-- i.. ..... .•;.,:;•,..;:":.;"•;;,;;::"■;;-" ;■■ -" "^- .-wis. ^■"'■""•■"••^' 'IH...IIIU.VS ,„. ,„„..,. :...,:,.;;,,;'^ ^'"'■••■^- ^"-■<. ^'-h. . J'- '-'"H .•....,„ .■„,• ,h.. ,„„.p„s,. ,„• ,.,„,.,i,i . ■■ "";;^='^-"" '-'/ :;;:: :;::;"''^- '""■•'"■->- I'l-orin-hil Sirnhirii. I, i 1 iiifl- um k m m '•If .nf i h mJ nUITISII COLUMBIA {")• TIIK COMPAXIKS ACT, 1S<)7. I'Airr I. Ci>\STITrTIi>\ ANJt IN('()UP(iU.\T1m.\- (IP C( )M PA NIKS ASM) As30CIA- TIli.NS T.N'Jpl:1l TIIIH A'"T. Ml iiii.idiiihini ill .\KHiiriiiliiiH. 9. Mode of foriuing a company. Any live nr iiku'c |ii'i'si>ii« nssociiitcd I'lir any law fill inii'iiusc wiiliin tlir scui f this Act nia\. liy siil)s<'i'il>iii«: tlii'ir naiiifs to a Mcnuprancliiin nf As-^uciatldii, aiiil otlicfw isc cnniiilyiiif,' willi the I'riiiiisit'oiis nf tins Act In rcsiuTt of rcgistratinn, furin an incnriiur licil coniiiany. with or wliiimit liniilcij linliilit.v. 10. Limitation of Liability of members. T hi- lialiiliiv of till' iiit'inliiTs of a I'oniiiany fnrmcil under this Art nniy, arcnril. inir to till' .Mcnioraniinin of Association, he limited either to the jiuioimt, if any, unpaid on the slnre~; respectivi'ly held hy them or to such amoniit as the meinhers may respectively nndertiiUe Iiy the Meinorandnni of Association to contriliute to the assets of the <'om|iany, in the event of its heiny: wound up. 11. Memorandum of Association of a company limited by shares.— NN'here a company is furme part of the Province in which the re,i;istered ollico of the company is proiiosed to he situate: (.'.!) The (dijects Uw wliich the iiroposed company is to be estal" lislied: (4) The time of existence of the proposed company, if it is in- tended to secui'e incoriioration for a fixed period: (5) A dechiratioii that the liability of the UKunbers is limiteil: (()) The amount of capital with wliich the cmnpiny proposes to be registered, divided into shares of a certiiiu fixed amount: (a) Copies of the British Columbia Companies Act. in pamphlet form, may be olitaiued on application to the Honourable the Pro- vincial Secretary, Victoria. H.C. I'll. u. .Mi;\l(>UAM»IM n|' A->Sui lA 1 |( ).\. 403 Siiliji c-i tc ilir iiilldwiim rrKiiliiliMiis: ill '''hilt ini >iili>.iilitM' >liill liikc li>- iliiiii iiiH' sliiirc; iL't 'rii.ii I'iii li ^MiiscrihiT 111' ilic Mi'iiicii'imdimi nf AsM.riniion slllll Wlid" ii|i|ici>.ili' Id his llilllli- lllr IIIIIuIht 111' >llill'r> lie ImUcs: l.'il 'I'll.'ll I'lK ll Mllisci'ilii'l- III llli< Mil iiiiraiii|mii n r .\>-i„i;|l mil 'llilll 111- lIlc liiiliil liilr IliiMiT ill llis iiwii riulll 111' till' sllMI'c ir sliMi'i'-. lur wliiili III' liii^ -.iilivifilinl ill til,. Miiiiuriiiiilinii if A- -111 i;|l mil. 12. Memorandmii of Association of a comiiaiiy limited by Kuni'nMtec. W'li liiiviiiir III*' ll rrc 1 iiiiii|i;in\ i-- luriiii'ij iiliility III' ils iiii'iiilii'i'-; liiiiiii'il ll nil llii' |iriiii'i|i|i' III' I "-mil iiiiinnnl us iIh' iiii'iiilnTs ri'-.iii'i'livi'l,v iiiiiliTliiki' 111 ciiiil riliiilr in I'li' n- if til <'iiiii|i;iiiy ill iIh' I'vciil iif till' siiiiir lii'iiiLT wiiiiml iiji, iii'i'i'iii:ifii'r if- frri'i'il 111 IIS ,'1 rii!ll|i!lli,\ liliiili'il liy l.'ll:i r:l II I I'l'. lllr .Mi'lllnril llilnill nf Assiiciaiioii sliiill riiiiiiiii tlic fulliiwiiii; iliiiiirs, ,|i;ii IS 111 siiy (ll 'I'lll' llilllli' llf ll 11' jiriijiiisi'il riiiiiiiiiny, wiih ilii' hllnll 111 l!li> lis •■ I.iiiiiii'il I'.v L;ii;ir;iiilri' as ijir l.isl \\iiri|> in siirli ll.-llllC rJi Till- p.'irt llf llii' I'rmiiiii' in w liicii tin' I'l'i^isl'Tnl nllirc of tlio •lllll|i!lliy IS lirii|invri| ll -ll n.-itr (I'll Till' iilijri'ls f(ir wliirli ilii' iiiu|iii-i ij riiiii|iiiny is in III' oslah- lislii'ii: ('4l A ilci'lai . -llilll lliit cai ll iiii'iiili 'I- iiiiili'i'lal llial lir is a iiii'inliiT, m- \\itliiii niic yi'ar aflrrw anls, fnr |iayiiii'iii nf tin- ili-liis ami li'iliiiiti.'S llf lllr cniniiaiiy I'mii radnl lirfniT ilir linn- ai whii'li he (•cast's In lie a iiu'IiiIii'I'. ami nf lln' insis, iliarui's aiiil i'.\- piMisos of wimliiiu: iiji the riiiiijiaiiv. ami fnr ihr adjiisiiiii-nt (if the I'iu'hts nf llm miii rilminrii's iiinniiLi.-l I imiiisrlvi's, siicli ainoiint as may lie rcqiiircil imt r.MTriliiii,' a sin'cilii'il amnimi. 13. Memorandum of Association of an unlimited com- pany. — AN'licrc a cniiipaiiy is funiicil nn tlm iniiiciiilc nf iiaviii:: mi limit placed nn the lialulily nf ils nieniliiTs, hciciiiaflcr rcferrci! in as ;\ii tiuliniitcil cnnipany. llm Mi'iiinramlmn nf Assncialimi sliall coDtaiii the fnllnwiiii: tliiiiiis, ihai is tn say;— (ll The name nf the prnjins,.,! ciiiiipany: (2) The part of the I'rnvimc in wiiiiii th" rci^islcrcd nlliic nf the coiiipany is prnpnscd tn he situate: i3l The (ilijects for which the prnposcd cnnipany is to he e.stah- lished. 14. Signature and effect o" Memorandum of Associa- tion.— The J^.-iiinriUidiiiii llf Associatieii shall he si;;iied hy eacli stihscrihcr in the presence nf, and lie attested l»y, one -witness nt the least; it shall, when registered, bind the ((Jiiipaiiy and the membeis 41)4 Hlirnsil C(JJAJMIUA COMI'ANIhS ACT. [Cll. 4+. thereof to the same extent as if each ineinlKT had snl)scrihcil h\< iiiiino and allixcd his seal tlu-reto, anil there were in tiie Menioran- duni eontained, on the [urt of himself, his heirs. oNecntors and ad- ministrators, a eovenant to oliscrvc all the conditiuns of such .Mcnio- randiini, snhject to the iirovisions of this Act. 15. Pc'wer of certain companies to alter Memorandum of Association.— Any eom|iany linuted by shares may so far modify the conditions contained in its .Memorandum of Association, if authorized to do so V)y its regulations as (U'ijiiiudly framed, or as altered by special resolution in manner hereinafter mentioned, as to increase its capital, li,\ the issue of ni'w shari's of sueh amount as it thiidis expedient, or to eonsulidate and divide its capital into shares of lar.i^er amount than its existing; slnires, or to eonvert its paid-up shuns into stock, lint, save as aforesaid, and save as in the location of the registered olli<'e of the comi»any, and as is here- inafter provided, no alteration shall he maile by jiny company in the conditions contaiiud in its .Memorandum of Associiition. 23. Copies of Memorandum etc., to be given to mem- bers. — A copy of the Memoramlum of Associn tiou, ha^ • annexe I thereto the Articles of Association, if, any, shall be forwarded :> every mend)er at Ids reiiuest, on i)ayment of the sum of one dollar, or such less sum as nniy be prescribed by the company, for eacii copy; and if iiny com|)any makes defiult in f.irwardinv a copy ot' the .Memorandum of .\ssiiciatiou and ArticU's of .\ssociation. if any, to a member in imrsuance of this section, the company so making default shall upon summary conviction, for eich offence lie liable to a pemilty not exceeding five dollars, and ever\ director, manager, secretary and oflicer of the company who shall knowingly and wilfully nuthoiize oi- permit siuh default shall, upon summaty conviction, b(> liable to the like jienalty. 24. Prohibition against identity of names.— No eonipiny shall be reuistered iinder ii name identical witi) that liy which a subsisting company is already registered, or a society is incor- poi'ited, under tlit> provisions of tlu> "Inv'stmeiU and lioan Societies .Vet," or a society is registeri>d under the provisions of the " Iiidusti'ial ami l'rovid"nl Sov'ieties .\ct,'' or so nearly resendiling the same as to be calculated to deceive (i>xcept in the ease where such subsisting society or coiupjiny is in the course of being dis- solved and testilies its consent in such a manner as the Uegistrar requires); and if any company has heretofore been or shall hereaftc- he, withottt such consent as .•if(n'esaid, inc(H'porated by a name identical with that by which a snlisistiug society d nmU'r any of the afores.ii 1 Acts, or so nearly resembling the same as to b(> calcidated to de- ceive, such first-iuenlioued company shall, upon the direction of tin' Uegistrar, change its name; and upon such change being made the h.4-1-. •a \u< noran- llil iul- Mr\llii- .ndum so t'iU- cintiou. iumI. or iviont'il. iunonnt till into ivert its (' us io is lu'i't- .\vM\y ill o jneni- iinni'N"' 1 •iinlnl ■.. 110 i^olliir. for oat'li copy of liation. U" iil>!uiy so .iTciu'O 111' .livt'ctov nowin: :l:. -unniiii'. y I couiiv,\iiy wiru'li a lis iiu'ov- ,1 I,(ura s ol' iht^ l.lin:-- 'iiiuiin:- . wh'M'' |(>:n!J >ii-- vuislvar Ihoroiit't'"" a iiaiiu' any lii'-^ it'ori'sai a to lie In of tin '\ Ch.41] TAHi.E ]). 495 IiOfristi-ar shall cnlcr tlio now nanio on the lic^ristor in the place of the fornicr name, and sliall issu" a ccrtiticito of incorporation aIt<( the cnnipany er render defective any Icf^al proceedini^^ institiit>'d uv to he inslimled liy or a,i,'ainst lh(^ coinpany, and any le;,'al proceedinus may he coiuinned S98. TARLH n. Tabic of /■"(•(■« t(i he jxiid to the h'ty'iKtmr of Joint l^tocl f'tnnixiiiicn hy a. CoittiKiin/ hiir'niij u cdititnl diridid iiil'i slinnn. I'or rej.'istration of a company who»;e nominal capital dues not exceed 81(>.(»00, a fee of i?!!") (K) r"or resist rat ion of a coniiiany whose nominil caiiilal ex- ceeds .^lO.Udit the ahove fee of J^'J."). with the followini; additional fi'os, re^rulated according; to I he amount of nominal caiiital; (that is to sayi,— l'\ir every !>•"». ('(Ml ui' niuninal cipital. or part of .$r»,(IUU, after tile first ."rlKI.OIMI. u|i to !|;-jr.,(t(i() ) of iiomiiial caiiital. or part of .Sr».( )( l( (. ifter the lirsl .S'Jo.tMM). u|i to .<;."«( >(.»,( KM I 'J .')!> "In the case uf an c\i ra-pro\inciai trading coiiiiiaiiy which pruves to the satisfactiun of the IteKistrar that it is ,ictiially carry- in;,' 1)11 an est ahlisiii'd husiness lieyulid liie Province in which the hulk uf its niih ir- ised capital is invested, ilnTr sliall lie acceiited in c(iinmnlatiou nf the fees under the precediiiu item a f f one hundred dollars." l''(ii' every .sri.dOd iif neminal cipilal. ur part of $.".,(»()(», after the lirst $."i(»ii,()i»0 - - 1 '_'.". I'or r(>^;istralion of any increase of capital i^iide al'tei' the lirst re.uisi ration of the cipinpan.v, ihi' same I'ei's per !i!r>.00() or ptirt of it .Sri,(MMl, as would li.ive I n payahie '. if siu'h increttsed cjipital hid fofiiicd pan of the lU'iv'inal lapilJil at tlie time of registration. I'or it license to ur ruirislral ion uf any evfa pi'eviiaial coin- Piiny, the same fees as are iiayihle f And, in additit)n thereto, if the license or certiticate of registration under this Act is issued pursuant to section "lU hereof, the si me fees as are pay- able for registi'ring a new company hereunder, allowing credit as p.-irt of stub fci's for the aniotmt of fees paid by such extra-provincial company in ri'spect of its original registration in this I'roviuce. a license to an extra-provincial iiisuraiuc company For under section 125 of this Act For registering any document hereby reipiircd or author- ised to be registered, other than the Memorandum of Association For making a record of any fact hereby atithorized or re- quired to be recorded by the Registrar a f(>o of Publication in the Gazette, according to the scale of charges as defined in ScheduU> A of the " Statutes and Journals Act." 25 (10 1 0) 1 UO TABLE ('. Tadi.k of Feves to be paid to the 11i;i".i.-»trar op .Toi.ntt Srocic CoMPAKiiES by a Company not luiving a capital divided into shares. For registration of a company whose num>)er of members, ns staled in the Articles of Association, does not exceed 20 $10 00 For registration of a company whosi- number of nuMubcrs, as stated in the Articles of Association, exceeds 20, but does not exceed 100 25 00 For registration of a company whose number of members, ns stated in the Articles of Associ ition, exceeds 100, but is not stated to be unlimited, ihe above fee of $25 with an additional $1 for every 50 members or less num- ber than 50 members after the first 100. For registration of a company in which the number of members is stated in the Articles of Association to be unlimited a foe of 100 00 [Ch.l4. Cli. 44. TABLb: (• 41? . . $10 Oi» It' lit y- T, ho iiil ill 11 y lor- oi: lulls :rj uo 1 0) 1 Ul* LiiMT Srocic lividcd I as 20 !?10 00 irs, Ibut 25 Oi) •rs, 00, liiu- of be 100 0(> For ri'>,'istriitiuu of my increase on tlit- luitnliei' of iiieiiibors inadc after tlie registration of tho ci.iniiiany in respect of every oO inenihers, or less tiiau 7>u ineinliers. of such iiu;rease . Provided that no one oouipany sliall be liable to pay on the whole I ;:rcater fee than .tered, otiier tlian tiie .Mcniuranduin of Association For making a record of any fact hereby anthdrixed or re- quired to bo recorded by the Ueyislrar nf ( 'nuipinies, a fee of 1 00 1 Ot) NEW BKUNSWICK (') Vnder the Provisions of the Now Tirunswick Joint Stock Com- panies Act (l.s.tHb. (4) When tho proposed capital stock of the company is $2.'>.0OO and loss tiian $."0.00(i, the fee to bo sixty dollars t.$(;(t.ttOi. (7>) When tho proposed capital stock of the cnmpiny is $."')0,000 nnd loss than $100,000. tho fee to be eighty dollars t$S0.00). J00.OlK), niul less than $200,000, the foe to lie one lunnlred and tw.niy dolliirs (fj;! 20.00). (7) When the proposed capital stock of the company is .S2uo.(ii)ii and less than .$.300,000, the fee to lie one hundred md sixty dollars ($1GO.OO). (8) When the proposed capital stock of the C( nipany is .^.'iiiO.O lO and less than )}!rtOO,000, the fee to lie two hundred dollars i."i2nO.(iOi. (9) When the proposed capital stock of the company is !>."i0O.n(i(i and not more than .$1,000,000, the fee to be two liundrid and lilly dollars ($250.00). (10) For every .$."iOO,000, or any p:)rt tlierrof, in e\-it>ss of $1,000,000, an additional fee of fifty dollars (.$."i(i.()ih. (11) Supplementary hitters, wIkmi application is to increase ihe capital stock, a sum of twenty dollars (.fJO.OOi, and a furth'-r sum in addition thereto, nccordin); to the scale afon'sj.id. upon the in- creased amount for which letters are applied for. In all other cases a fee of fifty dollars (.$."(0.i. Imi not to fxceed the amount paid for orisinal letters patent. 4. All fees must lie paid in cash or liy an acci ptid clie(iui\ pay- nl)lo to the order of the l{(>ceiver-(. The capital stock of a company incorporated under this Act can not at any time exceed $500,000. unless under the authority of Supplementary Letters Patent or under certain provisions meni- tionod. For Petition and Notice in (Uncttr see forms given under Do- nilnion Legislation. The other forms necessary may be readily adapted from those in use in the other provinces. (fl) Copies of the ^Manitoba .Joint Stock Companies .\ct in )iainphlet form may bo obtained on iipplication to the IIoii. th(> Provincial Secreliiry. Wiimi|ieg. Man. 499 'i'.ArapF OF Vrh-< I.' r ^ViH.n UaM.,,i..ns S,,, ,:,'■' '"''"^''^ '•--- ^--^ ^^00,000. ...Mr;j -:,i:^^ .....oo A .on u ,s .v,oo,gou. b,.t U.ss tlnn s^ " -'^'^ "" .- |Ms ,,00.000. ,.„M..s....,,,,^^^^^^^^^^ ''''' " "H K IS „,o,v tl,,u, .«i;40.000 I,,,, 1... ,, l-'O 00 ^,'- it is ,40.000, ... ,.., ,;, I'r, '"^"'"•'" ■••• ^*^ ^»'> ^<'t ,.x,.,,..lin,u, 2,000 . . '"'""'«' than .si...nnu. ^,j ^.^ ^Vhoi. llu> ('harl.T is (•„,. .„, ;' 10 00 ^VlKMV tlH. (-,pi,,, :. . ■■^"■■'^■^''^ r.KTTKUS P.vno.V,r. "" ' .ipi'al IS increased tlif. iv.,, . . i "'^' "''<'vo list, iHU on tl.o L " ••"■'•"■■'"•'- to ^VlMMv ,1,0 ('.,nif,l mcrcase onl.v. A.i;;ust isn,. ls.,.s ' ''' ■■■•■ ino ,h> ! A'OJrill.w,,STTI,:iJRITOIME^,,, :::;:;;;::i::;;r,::S''- ■ <-' ^^ hen the Cai.itai .Sto.-k of (l,n •-'*"* '"^ '"• "Dwanl. .,n,l \ '••"iipuiy is s-oo.ooo '•>' >\ lU'n fho Capiiai Slock of ,l,-> l''^' •'"• •■'■"' "IMvanis -.n.I ,, , I. '"""""'' '^ •""''•'""^ ai AA'I. ., Illldoi- .yL'OO.OOK (JJ AA hen the Capital Stock of ,l,„ . 1"»* ^^^ ^^.;'".;uinva..s. an. „n.e; ;;;j;;;;i''-^-^ -•••'- ^'='^vhen th: ci; iia 't,:; v:r' -•- ^^ -^10,000 ana nn.h. ,40.000 '" ^""'^"'"•^ '^ --• '" ^^ '"'» tl'P Capital Stock of „, ' -'O ".r or nndor '"^ ••onipan.v is ,io,ooo 500 NOVA SCOTIA. i'i'l H 'j I I Under the iiruvisimis of llio " Novii Scotia .loiiit Stoi-U Coin- l)niiU's -\tt," lii'viscd Statutes of Nova Scotia, 1S)S4, (.'ap. 7!t, iiicur- poratioii is ynuited for tlie same imrposes and subject to tlie sani(» c(»nditions of procedure and form as prevail under the Itoinininu of (.'anada .loiut Slock Companies Act. TAiiiKF OK Fi;i:s. For a Company whose Caiiital Stocic is h'ss than .SlO.dOK tlie fee is ! ^U»,(Ki(» and less than .i^.jO.OOO the fee is I'.o ijJr.O.UOd and less than .$100,000 the fee is 4(» $10(l,(»it" and less than .$*jr)0,000 the fee is .'0 .$•_'.■( »,(MX> and less than .1!r)00,000 the fee is tin ii!.'.0( , 100 upwarils. the fee is .$70. For Siippl nieiitary I^ettera increasing the Cr.pital Stock, i/flTt. For Supplementary Letters increasing the pow»'rs. !fir». Foi Sui' ''"ineii* ". Ix'tters changing the name, $1."). No otiiciil <">)rrus or instructions regarding the incorporation of companies in the Province of Nova Scotia are issued by the Depart- ment or prescribed by the Statute, but the provisions of tlw Statutes together with the forms given in this book for use in t!ie other Frovinces. will afford a complete guide to parties seeking in corporation in that Frovince. PRINCE EDWARD ISLAND («) m I'nder the T'rovisioiis of the I'rinci' Edward Island Joint Stock Companies Act, Chipter 14, r)lst Victoria, incorporation is granted for the same purposes and subject to the same conditions of i)ro- cedure and form as prevail under the Dominion of Canada .loinl Stock Companies Art. TAUiii-F OF Fei:s. "When the proposed ciiiit-'il stock of the c(Miipany is less th.'in $10,000. fee to be paid .$'_>0 ("I 10,000 ami und^r !?-_'r>.000 LT) on L'.'.OOO and under .">0,000 ;',0 on r.o.000 and under 100.000 40 im lOO.OOO and under 200,000 GO 00 200,000 and under 300,0(K) SO on 300,000 and under .'.00,000 100 On 500,000 nnd upwards 120 di (nl Copies of The Prince Edward Island Joint Stock Com panics Act in pamphlet form, may be obttined on applioatioii i- the Honourable the Provincial Secivtary, Charlottetown. P. E. I tia 40 .'0 (ill (a). INDEX TO FORMS AID PRECEDEffS. !);20 l"l 2.") (lit yO (1(» 40 00 GO 00 SO on 100 on 120 00 m J 1 A INDEX TO FORMS AND PRECEDENTS. Fur (ii'miid Jnilii m •■ /"'i/i ,'i(i:i. Thr iiniiilni^ rrfri In jiiiili's. ) Agreement I'm' ^alc to |ini|Misc(l iiiiii- ' Meiiiorniicluiii of Agreement iiii'l Ii:in,\ of siDck-ill tTildf, I'lc,, lo Slurk HimpI;, ,'!1(». fdini luirt cpf Msst'ts 1)1' comiiMiiv-. Affidavit nci'II'v iir^- siu'ii.ihiirs |o Mi ni- iiliil ;is lo ;ii(i'i>l;iiii ».' in ii;iy- ui :iiii|niii nl' Amcriiiciil , .'HI. iiit'iil llit'i'cof dl' sliMii K ill ill • .(iiiipiiiiy. whicli iuv tu hf .nil- '■"i:^"'' r. > i.n. kk.xsk Tin: .ai'i iai. .sr. "'K. siilfivd MS piiiil ii|> sliaivs. -JS',. By-law pn.vidin- lor iiuiv.is,.. ::il. lur siiU' to i.miM.s.'.l compiiiiy o| a Affidavit vniOiiu Kv-iau an.! iiniviim Koiii;; ('(iiiciTii for wliicli pa.viiiciit -aiKihiii >>( -.- iin' :'.l" is to I... iiia.h- ill liai.l-iip siiaivs. By-laws ir-iilaliiij .'aninir' .H' ;;rii,.ial anil iinilcr wliicii ciwiicr ciiIit cniiipaii.v's sci'vicf. -Si. anijilicr rurni, li.Sll. annihi-r I'oiin, l".H). anutlicr fcuni. 12!M. Application for Shares, '2T>. Consent to use of firm name as nanii lllrc'lili;;-. ;;i.",. 'Affidavit Vfrilyiim liy-lawn ri'^riiialiiii; calliii;,' Hi' nifc'iiiiirs. .">|-l. I Notice ill iiK-ai iicw spaprr nf special ;,i-iicl'al niicliiiL;-, .".1 I. Affidavit pi'uviiii: laliiiiL;' uf inccliiiu . , ,. .iiiii MTiiyin^' iKitirc, :;ir>. of i.n.pus,.,! .uiiipany witli alli- Notice in -J. Notice of Allotment of Shares, Ll!*.',. Prospectus, 11! i;!. anotiu-r form, witli P'vt'.'ivn..- pg^j^.^^^ ,.,„, Su|,pl.-nunlai v Lnici-. ^"'•''^- -•'*• , lai.-ni. ;;ir,. lor a nuiun^ c.H.iipany, L'!iS. Affidavit vrifviiu Stock Certificate, coinni.ni, I'.Ol. ^-^^^^^ .,y pn'f.Mvn.-f, .",(tJ. n.i.rclinu l,n,H, fi,l, rhar.-icl.T ..f in- prt'fci'fncc Willi ( (iiiiliiioiis si .i! I'd, Ki'Il- i:l IlillL of U'llh'l al iihclin;;' wlirri' no liy law for llii' purpose lias heen pa>sed, and \i'lif\ illi;- liotiees, .'M-"!. ij; siy:natnie> in |i, 1 1- .iva-e, .".IS. To I'i:c'1!i;asv; tiii; caimtal .stih'k. posi> may lie ;ii|aplei|. Pr,HMS K. i: ..i;taixim: iNn ,ki...i(a ; i. iN jjy.jj^^ pruv idi,,^ for deirease, :;iS r.Niu'.K (i.ntauui .\(-r. ..,,.,, . , i'iii' i'ili|.|. fiiiiii.., :ip,. ill,, same as Ihose lor (I sninldr li:st of iKUinn raitiirn} ■ , ,. . . . ,,..,' ,.,, lieiesary lor iiier.'asiim- liie (iiiiI- uiuhr noitiiHion Act, .see ixk/c 1..1. ■ i ,, i ,i .■ . i ' ■ lal. and ilmse i;iven Im- lluit piir- Petition f.ir Ictlers patent. .'{(»4. Special Provisions f.ir insertion in. ir tlionulil .lesiral.l.., :W,<). ,, |.^,^ .,,,, ,.,.,,,.,.,. ,|,,,|.. xiMitKu ..)■ Affidavit \-erifyin;,' petition and as to; i.,i.,.,.-i-, ,, . name of coiniijiny. .".Utl. 1 Power of Attorney to si;;n r.-tition. By-law iiiirea»iiiu- tiii' numlier, .".2H. ami Stoelv I'.ooii. ete, liOT. Affidavit verifyin- r.y-iaw ;iml prov- Affidavit vcrifyiuK power of Attorney. mil,' s;im I imiini; of >ame. I',]:'. :{(IS. Notice pnlijisliini; I'.y-iaw in Oiituri'i verifyiiiji si;;iiatiires to petition, ".OS, Untitle, ."'JO. when iietitioii sij;iie(l Affidavit iiroviiiLr siinie, .'{21. under Tower of At- By-laws re;;nlalinj,' tlie .iiliin;;' of a toriiey, '60\). general nieetin;:, ;ti;>. 504 INDMX lO I'OltMS AND IMIKCKDENTS, I t ! ] 1 1 1 1 ;' 1 1 ; mmM 1 1 Affidavit voril'yiiiK uniiit', IW-l. i Affidavit vnifyiiij: potition, 1527. Notice ill local iic'vspuiH-i- cjilliii^' ^'cii- Statement of allairs on siiiiriultT, ;:.:7. .nil iiicctiiijr. ;!14. i Notice in local iicwHi.aiier as U> mm Affidavit proviiiK calliUK ol incclliifc' i iriidcr o".S anil vcrir.viii;,' notice, .'51*1. Ill (liittllo ol' acc(>i»tauc«! of siiiii m .Icr. 1528. KOIl UCENSR TO AN KXTHA PROVINCIAI CORPORATION. Resolution niithori/.iiiK iipplication tiu I liiciisc, :{2.S. ! Petition of coinpany for Tu'ciiho, '.V2U. I Affidavit vcrifyinf; potidon, IWO. Power of Attorney appointing reHiilint attorney, .'{.'M. Notice ill Oiiluriu Uu::iHc calling Kcn- ciiil mcctiiij;, 1514. Affidavit proviiij; calling of Kciienil nioctinj,' where no liy-law for tlie piu'Iiose lias been passed, iiiul verify inj; notices, ;5ir» TO i>i;ci{i;.\si'j TiiH M'MUKU op nillKC- TOIl.M. The sMin(> forms arc necessary .ts for in- cicasiii^', ami those Riven aliove may lie adapted. KOllMS FOU ClIANlilXG TllK IIKAIJ Ol'TICIC. By-law chaiiKiiiK, i{21. Affidavit vj'rifyiiiK By-law and proviiiK [ Affidavit verifying,' lialance shoot, \V1 siinctioiiinK of same, ',V1\. Notice publishing' l$y-la\v in Oiitnrio a(i::clt(\ :{2(). Affidavit proviii}; same, .j21. By-laws rej,Milalinf,' the (•allin^' of a Kcneral nieetinj,'. .'{l.'}. Affidavit verifyiu},' same, ^\4. Notice in local newspaper <'allinK fren- ernl nieelinf;, [514. Affidavit proving calliiij; of meetinK and verifying notices, 315. Notice in Ontario Gai^ctH calling general meeting, 314. Affidavit proving calling of general mei'ling where no By-law for the purpose has been passed, and verifying notices, 3ir». I'OnMS FOll CHANGING THE NAME OF A COMPANY. Petition for Order in Council changing name. .">22. Affidavit verifying signatures to poti- tion, ;',23. Evidence of coin|)any's solvency; Bal- ance Sheet, 324. Affidavit verifying petition. .">24. verifying Balance Sheet, 32.">. FOR SFURRNDER OF CHARTEn. Petition for acceptance of surrender, 32(;. bona ti(l<> charactor of increase of capital, 31S. bv-law fiu" incH'aso of capital stork 312. regulating calling of inei i ings, 314. changing head ofllce, 321. calling of mooting, and notice, .">ir.. calling of general mooting where u by-law for the purpose has be. passed, and also notices, 3ir>. increase of capital, 317. license, for extra provincial corpoi ation, 330. menioranduni of ngreemont an ' stock book, 311. petition for change of name, ."{2:; 324. potition for incorporation and nani of company, 30('>. power of attorney, 3t)S. publication of by-law to ohnn^:c number of directors, 321. signatures to petition for incorpi' ation, 30S. when signed under pow;i:{. |K-titioii for, •'>:•(!. Application for Shares - Willi autliorily to aitjiiy (l('|)osil, 2.">. Assignment of Shares as coilati'ial si'fiirity, 'M>>. Attorney — Anpoiiitiiu'iit of resident, liy o.xtru Provincial Companies, 'SA\. fiee aiso Poirir vf Attormy. Audit — Si»eeial provision directing; an annnul, 3Ui>. Auditors' Certificate, 'S.SK Balance Sheet— (Soneral form, ;>:i'J. for change of name, y2.'i. ntlidavit verifying. 325. Ballot— for election of directors, '.WO. approving of resolution, W."!. Bond— Cashier's, 340. treasurer's, \M\. By-laws- changing head ollicc, ;{21. number of directors. ,'{2(). fixing rate of discount on mining shares, 3rl(!. increasing capital, JJll. limiting transfer of shares. .•U(!. reducing capital stock, 318. n'guluting calling of general mcei- ing. 313, 342. special provisions as to approval of, 370. tahle of, 341. Call— Notice of. 3r>(]. resolution making a, 1(!0. Capital— Increase or decr(>as<> of, hv- laws for, 311, 318. * ! Cashier's Bond, 340. Certificate- auditors, 338. i of Secretary as to resolution of i directors, 3(».'5. Certificate of Stock— inilciiiiiily on issue of \\v\\ , l|."iM, noljrr (if loss of, .■!."•". ordinary' or ( hiuiikiii, ,'in|. preferred, .MIL'. wit!) (luidilions, 303. Charter .V((i /(/,(/./• l.ilttrn I'ltlmt. Charity- Siieciii I provision as to. ;i7(). Collateral Note. 3tM. Collateral Secui-ity assignnieni of shares as, .'!;!8. receipt fill', .".i;."!. Collecting Agency Spe.j.ii piovisi..n iis to, 3T<>. Consent lo use of tinii luiiiie. 2!»2, exisiiiig < oMipjiny's n.'Uiie, 202. Consolidation, n^'iemicni, cii-., :; 17. Contingent Account Siierial provi- sion as to, 372. Declaration — supporting jiclition, Kominion, 4,"!.". Deposit- autliorily to aiiply to expenses, 2.'>. Directors- luillol for election of. 340. Ijy-law changing luimlier of, 320. qualiticalion of, provisions as to, register of, 300. resolution declaring ollire v:icant, j 303. to borrow nioney, .'i03. special [irovisions relating to, .373, two yt'ar it rni for, ."'173. votes necessary lo elect, 374 Discount- -liy-law lixiiig, on ininiii^' shares, 340, Dividend— eiitric's uiion declaring, 171. power of atlornev to i"'"ive, ','iT\H. 3.")0. ri'solution declaring, M.i. special provisions as to payment of profits, in cash, .372. 374. in stock. .372. 374. Endorsements on Kills or Notes, IDS. Evidence of Conii)any's solvency, .324. Expenses — Special Provision as to pre- liminary, 374. Firm Name— ('onsenl to use of, 202. Forfeiture of Shares -Notice before, 350. Head Oifice— liy-law (hanging, .321. '!' ^ ft ; ! Vr' o()«) 1NHF,.\ I'o I'nllMS AND I'ltKCKDKNTS, ludciiinlty <'ii ir««ne of new »erlili»aU'. InBtalnient list, XVJ. nrrip, I'lTA. Leitera Patent - IM'lilioM I'or pominioii. W-': Ontiirio. .'M. HUi'iH'MiIci' nf, :'."J<1. License— ix'tition of cxlni provimiiil < oiil- paiiy tor, ',\2'.). rt'soliilioii iiut'liiirizin^' iipi'liiiit'"'! lor, :V2H. LimltlnK Memberihip Spcciiil |iio- visioii !iH ti), 'i~7>. Liquor Traffic rn.hilpiliiiK "..rk in (•oiiii('<'li'J, Lost Certificate - iiKlcniiiily on issiu- of lu'w oiio, :^."(>. uotict' of losH of, '-^'u. Manager -Ani't't'iiit'iit apimintiii;,'. ;<:i-. Meetings nK<'ii(l!i paiHT lor. '.>''V2. by-laws «s to, ;u;{, 'M-. iioti<<' lalliuK 'i>'>ral. :U4. proci'ihiro at sliarcholilcrs" lirsl, 77. directors' lirst, NO. general. S2. roquisition hy sharcholilors for siiccial. ;>- Itetition for chauut' of, '.V22. "No Personal Liability" - Siudil provi;. illlotnieiit 111' shares. '_'!•;'.. aiiplicatioii for surrender iharler. •>-S. applical inn I'cr < liartcr, 1 1^: iidoii, |;!".I. cull, .•'."••■.. Iiiss iif ( cri ilicate, it."(7. Office I'.y l:i\\ cli;iir_Miit In !id. •"'.■. I \ Officer I'csnliiiioM conliniiinu act uf, :',>'::. relaiiiinK. of old business, '>\~*'>. sal;ir\ of, fixed liv iwo-ihirds \n i. Petition I'uy aniMlKfiiinillciii ei' > ' panics. ;>;{<). for change of name, .■>22. increase of capital st ':. letters patent. Doniininn. I Ontario, .",in surrender of ("barter, •';-■ of extra lu'oviiicial conip;in.\ i"! license, .'fj'.t. Pledge of shares. o.">7. under Itiink Act, .'>."t7. Power of Attorney- appointing' resident attorney. I> licensed company. ',V.i\. I'evocaticui uf Kciu-ral power. ■'.. special clauses ill. '.ii'A. to sign petition and stock i :i(>7. :t.v.», yco. to make transfers and receive ' (lends, ;j.").S. Preamble and Resolution- authorizing corporation note, : application for license, .".L's contirining act of ollicer, 'M'C declaring dividend, ."'ili;!. t)Hice director v;h . :i!. •.u;:i. form of, 7tJ. to borrow money, ;!(>;5. Preference Stock Certificate - form of. :>(»•_•. ;!(».",. [)rovisionH as to, 377 to 380. IN'nrx TC lollMS AND PltF.CKDF.NTS. 507 Clillk'. ''>■'''• U ill I ' ^ ill (liilii,''i i, ' "''■ II, Id- nf . li.' s. 'j!»;'. sunrlbli'f liiuirr. I>"i"- iiriT. IuimI. :■.•- 1 lU I llf. •'''"- siiii'ss, IiT'i. wu-tliinls vii:i. itlitiii t'l' '""I Pr«>ai(If>iit l'ni\i-iniw .-i-* to inivnuMii Slinrca < '•nihnuil. . W'll. tal St )iiiirMui)i 1, -1 :)ut:irio, ;.;oi. 'lllll'ttT, t ».* (oinpi my iiltorut'.v. ' |iil power, Id stock i lid icfi'ivv tion- Inii unto, :■ lici'lisc, •'•-'^ liciT. :'>'■'-■ tiflcatc to 380. of. ; Profita. >1 Hire III, ;i> ^il;ir.\', '.SO. p;i.\ iiinil ol". ill dividend- Promiaaory Note, riiil.iiscmpni of. 1!IS, "I' ('oI'lHlMlllnli, ;!(i|. Iilcduiiii.' stu.k nllli pi.ucr mT n:i(c, .".til, Proftpcotiis 1' iirin of. I'll.'I "iili |ir<'r('rcncc sii.ck, •J',(|. tor ii iiiinJMu ('(ini|i,'iii\ '.IS. Proxy I' • pci'liil |irovisio\i-i n< to |iinrlui«)' of, .".71, allot niciit of. .".<'■',>, iniiisfi.r of, :i.s:',. ;!S». Shnrnlioldcra .\|i|)io\iil of li.\ laws, provision as to, ,'IT'I. list of, at animal inct'tiiik'. >•'*■ for animal n-tiiin. o-VJ. indiii' of. ralliiitr special nicetiiii;, oi'in of, .".li.t. .".(is. prior riulil .•iSI. to sllliscrilie for slo I, power of aMonii'.\-, re, .",i;|. Rrrcipt for Collaterala, :'.(..". Rrjjister of directors. ".(i(>. ^Iiareliolders, ."(.r.. iraiisfers, .",i;7. .•ts;>,. Repeal of Special ProviNioiis. :;s(i. RrqiiiBition by Shareholders-^ lor speiiii! Ilieeliiijr. otiS. Reserved Stock— Provision as lo, .".Sj. Resident Attorney |io\ver of alloriie.v appoint inir. .".."i. Resolution re^risler of. ".(IC. reiinisiiion of. for speri.il nireliir;, :;tis. retiring', jinrcliase of their sloeli, :'.7l. Solvency l-lvidinee of eoinpan.v's, '.\1\. ^:l•l:l•l.\I, 1 liiNlSHiNS I'olt I.NSICKTP'.X IN" r||,\l,-|| It.s. Apjents .\ppro\al of appoinlnnnt liv ^lla|■ellolde|•s. ."(it*. Allotment of Shares \'( liii;: in 'I.">. Retiring Shareholder purchase id' sloeU of, .",71. Return .•innnal, .">."."., from Ii«-eiised exira provincial i-ompaiiv, a.'ii. Directors I''le<-tion. .ippointnienl anil Salary-S -vA provish.ns as to. :'.7r., ' pa.vinent of. .•17:;. ..VI and 1 resiileni, pavineiit of (an- ••' '• 1 . .- , ' c . 1,1 i ..-. oihef lornii, ..(... Scrip Inst.ilineiit. .!.»1. .. . ,.,, ,, ... c . . , • ,• ,.„., liMiiu' qinililication ot. in ;i niiniiii: Secretary Aureeineiil ;ippointinu', ••■■J, .,_., ' i'oiiip;in.v, .'.1.!. Shares .Mlolinelll of. -Jl. \ nmnl.er of votes lleeessjir.v to elect. applic.iiion for, !.'■"•. ;;7) ••'^■'^'-"""' f. i(. i.roker, :;::s. | ,,^,, ;,,.,,. ,,,,,,„ ,.,,,._ .,-_.,. Iiv law liinitin;; IranslVr of iiiinin.r. oj,; Dividends— ra.viiieiit of prcdits in cash, forfeiture of, noli;e of, ".."m. Expenses- rreliniinar.v - rayment of, power of attorney to transfer, ."558. | 371. Charity Iievotini.' pereeniaire of pro- tits to. .'!7n. Collecting or Merca tile Agency - .".7U. Continuing Shareholder — KiKht to hiiy shares of retiring; share- holder, l'.71 Contingent Account ■ .M.'iintainiii}:. ,'ind disirilmtini; protits in cash and >lock dividends. ;i7"_'. SOS INDEX ro FOKMS AND PWECEDENTS. SPECIAL ritOVISIONS-CoHM/Kurf. Itimltlme Membersliip iu company, 375. Liquor — Prohibiting conipnuy doing work in connection with, 375. " No personal liability " in mining charters, 37G. Officora — Appointment and payment of, 373. retaining old and limiting salary, 37G. Preference Stock— With fi.\ed divi- dends and priority on a dissolu- tion, 377. another form, 377. with fixed dividends, jiriority on a dissolution and a reserve fund, 377. with fi.xed and additional dividends, priority on a dissolution and with right to select one director, and also to elect a board of direc- tors, 378. with option as to dividends, 379. redemption of, on paynient of pre- mium, 380. right of company to redeem, 379. Profits— Share of, as salary, 380. Repeal of Special Provisions, 380. Reserved Stock— Issue of, 381. Salary— Approval of Shareholders for increase of, 381. Stock— Shareholders' prior right to sub- scribe for, 381. Stock Book— 310. Stock Certificate— Common, 301. indemnity on issue of new. V,T\). jiotice of loss of, 357. preferred, 302. with conditions, 30;i. Stock-in-trade— Sale of, to conii)iin;< . 285, 287. Stock Ledger— 382. Statement of affairs for surrendi-r (ir charter, 327. Snmmary of affairs of company. :\y.\. a licensed extra proviiui;il company, 354. Supplementary Letters Patent petition for, increasing capital, IJl'i. Surrender of Charter- notice of application for, 328. acceptance of surroiulir, 32G. petition for, 326. affidavit verifying. 3127. statement of affairs for, 327. Transfer of Shares- form of, 383, 384. power of attorney to maUo, ICiS. register of, 367. Treasurer's Bond, 341. Trustee— Agreement for transfer nf property to, 285, 287. Votes of Thanks to— chairman, 88. directors, 88. officers, 88. Voting paper, 85. Waiver of Notice of Meeting, :!Sl. D'>^^ GENERAL INDEX. Fur Index to Forms and Precedentg we paije 503. V siirremU'r ur Acceptance of Office by diivetor, 42. Acconnts— by-laws as to, .'544. may be audited. 2(!S. must be keiit, 2(51. payable, aunitinji of. 111. receivable, auditiug of. 110. rislit of director to see, .">. Avhen incorrect, 114. Actions bet^Yeen company and share- holders, 259, 457, 47l». for calls, 248, 419, 475. Acts— Respectinfi companies in Ontario, list of, 225. table of, X. Addresses of shareholderii and directors in books, 259. 450, 477. Advantages of a company over an individual or a firm. 1. Advertisements — Sec Not ices. Affidavit— Fees for takinf,', 224. proof may be by, 2'M, 459. who authorized to take, 23(5, 459. Agencies — In United Kingdom, 458. Agenda paper, for meetings, 332. Agent— Liability of, 154. 2(ji), 4(10. as transferor, 154. of company for, 2('>(i, 459, 478. power of, 210. Aliens as directors, 471. as subscribers for stock, 24, 230. Allotment— aS'«! wirfw t^harcs. Amalgamation of companies, 27ii. Annual Meeting— .S'lr under MccHnos. Annual Statement— ."^'(t■ under l^etunis. Applicants for charter, certain, to be resident in Canada, 437, 4157. must be of age, 231. names of, in full, 232, 437, 407. need not be residents of Ontario, 230. notice by, 437. 407. Applicants for charter. i not less than three to bo directors, I 232. 437, 407. . number of, 232, 437, 4(!7. should not be lOO large, 230. provisional directors must be. 232, I 437, 4(57. i use of " clerk " iu describing for- l)idden, 232. Application _for letters patent, 231, 437, 407. ^ for shares. 20. may bo revoked, 20. of Ontario Companies Act. 22S. I Attorney, act of, valid, 4.5S. cannot be a tirm of solicitors. 417. licensed cori)oration must aii[)oiut resident. 41(j. Audit— Annual, 10.5. 208. commencement of. 107. should be thorough, 114. I value of, 104. what is an, 103. Auditors— Api)()intment of, 87. 208. duties of. 104. first, how appointed. liMI. 208. list of books for, 107, 209. may be shart'holders. 2(i8. (lualitications of, KM;. suggestion of better in(-lho(ls bv, 115. when accounts inenrrcit. 111. Authoriiation— Ivxira iiroviucial min- ing t(ini|i;iHy ni.-iy obtain, ISJ). Bad Debts— How written off, 110. Balance Sheet -Auditor's diilv as to, 113. how niiide ni), 113. shall be supplied auditor, 2(!9. Ballot— S'(c under lUeetUru. Bank — Kesolution selecting, S2. Banking— Comi)any lujt to engai;e in liusiness of. -j5l>. Bills Payable and Receivable- auditing of, 110. 111. 510 GENEUAL INDEX. PIf ril Blank Forma scut to cuiuriuiies for ret urns, 2(ir». Board of Directors — Sec Directors. Bonds — iloliiiitioii of. 12'J. directors niiiy issiio, 2r»5, 44.S, 401). fi, 2(;i, 45U, 477. entries and erasures In. 101. false entries in, 2."'>{J, 4."(1, 478. inspection of, 102, 212, 2tiO, 450, 478. list of, for auditor, 200. may lie rectified l)y judjre, 200. minutes in, 2()1. neglect to keep, 2.")J>, 4.")1. 478. ri>:lit of director to st-e, ."». strauf-'ers have no rijrht to inspect, im. to lie kept, 07. 2.V.). 2(51, 4.".(», 477. evidence, 201, 4."')1. transfer to be kept, 08, 2.50, 450, 477. where to he kept, 102, 200, 451, 478. Borrowing Powers- Directors may exercise, 200, 2.54, 448. limitation of amount, 2.54, 448. British Columbia Act, 402. fees on companies in. 405. incorporation under. 402. limitation of liability, 402. British Subjects — Tertain directors must be, 407. Business— Carrying on in foreign state, 180. 100. commencement of, 38. conversion of, into a company, 1. By-laws- approval of, 239. 240, 251, 254, 442, 470. 471. by Order in Council, 405, 473. approved at annual meetinjr. only repealable at another, 43, 208. cancelliuK pr<>ference stock, 407. certain, must be published, 238, 251, 445, 471. chunKiiiK capital, 237. 441, 400. chief place business, 251, 445, 471. numlier directors, 251, 445. By-law^s— ('oHM';/Hfr/. committee on, 81. creating preference stock. 24<>. 4iii. 473. difference between resohition dv w gulations and. 05. directors may make, for allotment, forfeiture, dis posal and transfer nf stock. 2.53, 440. 472. aiipnintnient, sci'\nii.\ . rcnunu'raticiii, r\r.. ni' directors. ipI'.kci's mihI aj^ent ,08. 2.":',. 417. 472. creatiu},' jireferciuc stmU. 240. 404. 473. declaring and payiiii.' divi dends. 2.53. 447. 472. imposing fines and pcUiil ties. 2.54. 447. 472. issuing anil registeriiii; stuck certifnMtcs, 25;'. 447. 472. sale of mining stmU :il disci (Uiil. [\XU. As~, stuck at prciiiiiini nr discount. 447. to change ntimber o( lUror tors. 251. 445. ciipital. 23S. 442. |i;;i. head ollirc. 251. I IT,. 471. divide shares. 2"'.0. regul.-ite calls, 25;t. Hi;, 472. terms, etc.. Ill' iliiiT ti.rs. 2.");!. 447. 172, the hiildint: of iiicel- ings. 2.5:',. 447. 472. efTect or, 00. I evidence of, 258, 45(). 473. fee on fyling. 411. I general principles of. 05. i giving preference stoekholilers run- trol. 247. nmst be confirmed iit general i ' ing, 230, 240, 251. 2.54. HJ, 471. by letters patent, 2;'>0. 1 1-'. 408, 470. necessity of, 07. power of company to nuike. 05. shandiolders held to bo conver^-nnt with, 05. subject of, 00. f ttm GENERAL INDEX. ill By-Iavvs — Con till in (I. kholiliTS rnir till ill' of, ;{4i. uiHMHiiil. iiiviilid, 2U!). CallB Capital— (7oh//;ii«(/. coiisists of iiiiHMinl. suliscrilicd only, 474. .11 111 U'\ wt't'ii iioiiiiual iikI l.y-liiws for, L'.'.;?. 44<;, 472. iiuncccssury, ltH>, 211. ciiiiiiot lie inadf until couipauy or- Kani/.od, iill. ilircttors may make, 'J.".'}, 44S, 474. cnforcciiiciit of payniciit of, U4S, 44! t. 47.".. forfeiture for iioii-iKiyuient of, l."(l. 21 m;, 1>4!>, 44! », 47."). ;,'eiii'rally iieeessary, HUt. holder liable after forfeiture, l.')7, 442, 4<;!>. anu.unt of, 34. in petition, 2:52, 4!?7, 4d7. aufliorized. definition of, 121. Immi flilr chnraeter of increase or decrease of, 2.'{7, 44I{, 470. p.'iid >ip, 34. bet) and sh: 124. division into shares, .'Hi. dividends must not lie p;iid out of, It;: liil, 4.-4. increase or decrease of, "io.j, "200, 2;{S, 442, 4(i!>. paiiers for midei- I) onnnion Act. 4;{1. Ontario Act, 2:!S. is sum upon which call-* may ho made, ;>.-.. liahilily on chauKo of, 2;'.;t. 442, may he increased, .'>."., 2iii;. 2:17. 441, 470. decreased, ;'.."., 2;t!>. 442. 470. minimr company, 487. ni>w shares same amount as uM, liH. n. Cash Book, audit of. lOS. in hand, 10!>. Casting Vote — ("hairman to have, 7."., 2.-.7. 44(;. Certificate of Stock — Nit ultsu under TraiiKfcr. compulsory rcirisiry of, l.'!.'?. definition of. l.'U. indemnity on issue of new, l.'l.'i. issue of, not essential, i;'>2. to ollieer, i:?2. loss of. 133. may !»> subject of le;:acy. etc., 132. of mining company, 131, 38!t, 3!)2, 487. only a vomlu'r, 132. oiitstandintr, siionld bo surren- K'M Certificate of Stocli— Continued. sharcholdiT ontitU-d to. Kili. usage of Stock Exchanges as to transfer of, 143. Chairman— at general meeting, 82, 257. conduct of, 87. election of, 77, 82. 257. may vote, 75, 257, 44t!, of Board Directors, 80. Change of Name— See under Name of Company. Charter— .S'w wider Letters Patent. Cheques — certified, 197. definition of, 190. etidorsenient of, 198. negotiability of, 19tJ. presentment within reasoiuil)le time, 197. use of, 19(5. Chief Place of Business— Sec unihr Head Office. " Clerk "— T'se of won] in des'Tibhif; applicants forbidden, -'.V2. Collateral Security— dolinition of, 195. may consist of, 195. Commencement of Business, 38. Committee — on i)y-la\vs, 81. ^ j provisional directors are a. 232. Company — ii distinct entity, 2(>:'.. actions between sliareliolders si'id. 259, 457. action for libel against, and by^19:',. acts of attorney of, valid, 4.5S. advantages of, over an individual, or linn, 1. agreement not to imrsue certain ob- jects, 214. amalgamation with other company. 2T(i. buying its own shares illegal. 21 S. capital— .See under Cairittil. certain amount stock must be sub- scribed. 38G, 438, 4()7. contract before incorporation. 21(). made bv ofticers binding on. 2ti(5, 459, 478. courts not interfere with manago- nnnt of, 21(i. declaration to lie made by, 482. contents of. 4S2. Company — Continued. defamation, libel, liability for, 19;;. definition of, 15. director indemnified in suits. 4'il. doing business in foreign jurisdic- tion, 189, 190. duty respecting trusts, 478. examination of its affairs nuiy ln' ordered, 205. e.xisting, may apply for charter, 4.5S. extension of powers, 275, 440. extra provincial, must obtain li- cense, 412. fees — See under Fees. for works on mining lands, .390, foreign, power to hold land in On- tario. 191, 418, 421. (.Quebec, 484. foreign state, may do business in, 189, 190. forfeiture of charter of, 213, 402. general manager of, 05, 210, good-will may be bought by, 195. important concerns converted into. 13, incorporated from date charter. 2."'.ii, 439. 409. by si)ecial act may get char- ter, 280, increase of capital— Sec under Ciiiii- tal. indoor management does not ■ . 448. 40'.», prel'eri'iice stock, 21" 404, 47:5. surrender chitrter. 274 wind U|) its business, 192. must give notice of issue of charier. 439. kcei) books — See under UdoI.-. nmke returns, 2(i2. :;!t3, 1" ■. 489. mw-iJ i iaiLU .11 (iKNEKAL INDEX. 51 :i business in, Ccm-pany— < '(III ti II unl. iiiinit; — .Sn; iiinlor Xaiiic r trusts, 247, 4C.1, 478. not to I'li^'iij^e in liiiiikiiif,', AT\\), buy stock in utiier cuniitany, Contracts— C'o» / /(ii/m/. of siiretysiiip, ISO. [ijiyjnent, of slini-es otherwise lluiii m cii; Ax. i; '.4, 444. 'ly.',. 44(i, 471 powef to niii.ie lu-ecatitions wlieii ihuUihk, lie. -•07, 4711. i niill2, 4;i7, .4(i7. a niininji; company, ,'>S' olttce— ,Vrr luidvr Head Offirv. officers of— .Vcc uiidir Officers. 4Si; one niiin. U. libs. Ontario J.oan. in (^uifiec, 2b">. power to actpiire its own sliares, b'>7. se.-il not necessary, US, 2\lien liinil in; IK!, 2t;ti, 4r)ii. 478. ord ■■ iiinited " in, 'M. iness into a coin- Conversion of a pany, 1, 7, li. Corporate lienefits, ex.-iinpli's of, ."». hold lain] in Ontario, 1!»1. 421. Corporator, detinilioii of. I:i2. issiH- lioiuis and debentures, ^„„.„ ,.„«,itfi.,,r "s-. ,,,. Costs, remitting, .>>.>. powers of. bS,", 21.'), 24."., 44:!. 4(;;), Coupon— ^^i; how dealt with. 122. promotion" of, 17. | negotiable, VS.',. lirosiiective, 201. ' Creditors — (b'lieiiture holders are. I2."., 17>. 4ti0. definition of. 12.'>. holders of, creditors, 12."., 17il. priority of, 217. Debtor — transt"er of stock wliile, to coinpany, 4.-:i. Companies Clauses Acts, list of. 27. Decimal Currency- sliar.s nniM bo purchasing stock in other cmnpanv, 207. puriiose.s of, 232, 4;57, 4('.7, 480. reincorporation of an existing. 278. relation of promoters to. 217, residence of— .Vco under Head Office. returns, must be made, 202. 303, 4(»."., 480. service of jtrocess on, 2,"»8, 4."»((, 470. shaft's — ,V((i niiiur 'Slians. suli.ieet to law of country where prop(>rt,v lies, .'■!4, suits by, 102. 2."»S. 4."'.7. 47i». fiixation of. in Ontario, 222. Quebec. 48.".. unincorporated. 2nl. when (ontracts binding on. 20»H«'(/. of lMiil(liii;:s anil leases, llLJ. plant autl machinery. H'J. Directors— aeceptaacc of offlce by. 42. ad ion of deeelt aKaiust. 1217. acts of 4. bindini,' on shareholders, ."». all const itnted by charter are, 42. i allotment of slock to. in order to i (inali'v. 47. Board of. 43, 'J.'O. borrowin},' powers vested in, 1209, ^.■.4, 44S. Hritisii stili.jects cert.-iin, to Ik-, 4(i7. cannot dele.i.'ate certain powers, 1201>. vote by i>ro.\y, !>0. ch.-iinnan of. SO. ifj. change number of. -")1. 44."). 471. papers reipiired under Domin- ion Act, 431.*. Ontario Act, 12r>2. commission to, 17S. contract made by. '20Ci. with company, .">. duty to cjiil meetings -when. 2o(;. elect itresident etc.. 2.">1. 44t'(. 472. election of. 41 1. 7S. S7, 207, 2.">1. 44.">, 44t;, 471. illegal. 207. entitled to indemnity. 47. excessive inci-e;ises of salary by, IS;!, failure to elect, how remedied. 2.">i. 44ti. 472. false statements of. 207. tidnciary itosition ends. 207. first meeting. SO. first, must \h} applicants :tnd share- holders. 232. 4:!7. IC.7. frauds of, 177. fraudtilent sjile liy. 2o7. holding ollice in sever;il <-ompanies. 51). indemnitied in suits against coni- jiany, 4tll. liability of. ."S. 207. for failure to make returns, I 2(;4. 40(;. I imiM-oiPcr dividend, 212, 2t;7. 4.-.4. j loan to shareholder. 2o7. 1 4."). 473. non-use cf word lindted. 243, 4(.0. Directors — Continued. statements in prospect u>. etc., 4(10. transfer to insutlicieiit person, 144. 247. 4."»1. wages, 20S. 2ti7, 3! 12. 4."..-, 473, 4S!). Ontario Act, resjiecting. :;'.•'.». loans by, to fompany. ISl. major p.-O't to lie resident in ("iniaila, 437. 4(17. British subjects, 4C.7. may allot stock. 2.'>3. 440, 472. appoint , 472. borrow mone.\'. 2. 254. 44s. di'clare dividends, lti."i, iTi:;, 447. 472. hvpothecate jiropcrly. 2.''ir). "448. impose tiiu's and pcnallii'^. 2.54, 447. issiU' bonds, etc., l!.55, I |S, m.Mke assignment. 20'.». by-liiws, 2.53. 440. I7l.'. refuse tr.ansfer. 144. 247. 151. meetings of. So. .Si). 254, 447. notice of, S\), 472. misreiiresentations iis to \\ ii" are. 17t». mm'tgage from company to. isl. n.'imes and addresses in books, 25'.t. 4.50, 477. I nonunation of. 78. I number of. 43. 232. 44 1, Km. 171. l)ledging tlieir creilit for bendil nf comp.any. 57. powers of, .5:;, 20S. 2.5:',, 440, 172. pref(>rence sharehoitlers to select, II, 240, 404, 473, proceedings of, 110, profit out of iigem-y, 217. pi'oiests of, .'igtiinst illegal acts, 2 17. 207. 4.54. 477, provisional. 43, 2;',2. 2.50. 444. I)rox,v. caniui* vote b.v, DO. purciiases i'rmu comiiany. 57. !>■"■ (lualification of, 47, 250. 445, 171 (piorum of, ItO. 208, 447. reguliitioiis of. Itl. nOiifions between, and conipan.x. ISO. remarks com-ernin.g. 5S renu)val of. 42. remuneration of, 44, 20S. 254. Hi. 472. retirement of. 48. 251, 445. 471. right of to see ai'counts, 55, secret gifts to, 178, GEXEIIAL INDEX. 515 Directors— ''o»/ in !/(•(/. stilt lis of, .")4. term of oHicc of, .";',, 'J.'.:*,. 44r>, 171. trustees. JOtl. viuamies. liow tilled. 4"J, li.")!, 44ti, 471. Vdtiiii,' when interested, 48. Discount — no power to issue shares at, 217. sale stock at. i:'.'.). iiiiuiu;^ st(jcU at, l.'U), .'{.S!), 4S7. shares issued at, on wiiidiiifi ui), 21S. DiTidends- l>y-l:iw derlariti;,'. niav tie made, -.">;!, 447. 472. eaiuKil he enforced until declared, 1(;4. Election — eaiiilidates should not he scrutineers at, 207. of directors, 4!», 7S. S7, 207. 2."1, 44.".. 44t;, 471. president, 2."1, 44 c(uupany may he deducted Extraordinary Meetings-N.r iukIvi fr.iiu, 10!>. 447. MiTtiiii/.^: (liscreiiiiii of directors as to, 10.". Extra Provincial Company — 2.-.:;. 447. 472. Hot ahsolute. 100. entries upon declaration of, 171. how determined upon. It').'!, impidper. not to lie paid, 2ti7. 4.'>4. 4.".S, 470. kinds of— cash, scrip, slock, property, I 104. i liahility for impioper. 212. 207, 4.">4. may he set off hy company, KIM. 447. |iaid out of reserve, 47. 207. 4.">4. 4."»S. 470. , out of prolits, 212. pa.vinciii of unequal. 217. refusal to pay. lOS. re;iiil;iticins respecting'. 102. ri^rlits of corporate creditors, 100. .set olT of dehts a.uainst, 10!>. 447. shareholders receipt a disclnirire fiu', 478. to whom it helonirs. 107. when decljired, is a deht due shai'O- hdlder. lO'.t. ^\ilhol|t forniMJ declaration, Ui4. Documents— l'\>es on fylimr. 111. Dominion Legislation- Companies Act, 4:>ti. fees on letters patent, etc.. 420. jiazetie iiotic(>s, under .\ct. 4;iO. iiistiMictions for forniin;; com|>;iny under. 424. lists of papers .-ind forms reiiuired, 431. Act respect in,:;, 4S!». Jif,'ent of unlicensed, penalty on. Hit. aiiplication for license. 11 I. appointment of ailorne.\ hy, ll.~>, 417. 4!iO. ch-isses i-equirini: license. ti:i. not reiiuiriiitr, 112. dealing; with real estate, lis. |S|. fees on license and return, 421, 122. linn of solicitors cannot hi' aiioruey for, 417. license must he procured hy. 11 1. as to real t'siaie. 421. to milliner iitario, 41'J. returns to he made hy, 41S takinir orders only, do not require license, 411. False Statements .Vn .\ct to prevent. lo:*,. in prospectus, lol. documents. 40,",. liahility for. 27:;. :iit.-.. KH. 101. Fees — l>rilisli ("olumhia, l'.>.". for letters patent, etc.. 2t'i'.l. ISO, 4!>.", 4!»7. 4!l!>. license. 42.">. orders in council. 272. private hill, 27. 4S1. how to send, and to whom payahle, U72, 4:".o. Munitoha, 4!>1>. 'I! fi I I H; ail I r^ 51(j fiENERAL INDEX. Fees ' foiilinuctl. Head Offlce-( •„},ti>n„;l. iiiny li(« roducod Tor rorcij;!! oumpau- , service of noiiee and i)ro('o>.< .u ".•;•' ios, 420. I 4.-Kj_ must lie piiid in ndvunce. 21';!, 270. wliero situated. ;!.",, SI, 2;;2 i:;7 KiT 409 4§(> . ". no.aries. etc.. Vol- taking' atlldavits. '"^PO'tant Concerns Converted into ,,,-,, Companies, 1... N."- Hrnnswi.U, 4!t7. ! Incorporation— X.n-lh-Wost Territories, -1!>1». ''>' '•''"'•■« I-ateiit, 27. 22!t, 4:!7, |r,T. .Nova Scotia, .".()(». spe.Mal act, 2f;. on rvlinj; l.y-laws, returns, etc., 411, •'•^t of forms necessary for, 2:;ii. 4:11. 421. proof of. 2."S, 4."7, 47!». I'rinco Edward Island, TiOO. Incorporators— Fines, directors mav impose, 254, 447, cerlMin. to lie residents of CaiindM. 472. I 'l'^**' "I*"' Firm of Solicitors-Cannot be attor- '^^■'"* '"•■'•^' '"'• "*'-• ney for licenseil coriioration, 417. Increase Capital- -.V(c iiikIh- Ciii'itiir. Foreign Company— : Infant as aiiplicant for diarier I'orliid lii'cnse for — .s'cc uudir Lirrnnc. j don, 2.'51. power to hold lanil in Ontario. 101,1 "» subscrilier for stock. 2:;. 2n.-. 421. Inspection- Foreign State— Company doinj; husi- Court and company may appoint an iioss in, IS'J, llHt. I inspector, 2(;.'). Forfeiture- "^ ''""''^' ^^-- -'-• "''*•• -*•""• ■^'^■ for non-payment of .alls, 240. 449, ' Vo^wrs and duties of inspector, 2(!(;. 47."'.. 48S. holder still liable on. l.'C, 44l». notice of, l.">(i. of charter. 213, 273. 4(12, 480. real estate, 191, 240. tender before, 157. Forged — transfer of stock. 210. Forms and Precedents. 2S.'> to I^S4. blank forms sent companies, 2tM. aiiplicants. 234. Franchise Account— illustration of. 130. Gazette Notice- dispensed with in Ontario, 221. rules for, 223, 430. General Manager— an eniployt'i' of coiiipanv. (>li. liability of cnmpiiiiy tor acts of, (id. l)OAvers of. (1,5. Goodwill— definition of, 194. stock may be issued for. li>5. Head Office, or chief place o'' Imsiuess — books to be kept at, 102. 200, 451, 478. chanire of. ."..",. 251. 4:!2. 44.5. 4.55, 471. papers for. 25;',. 4;>2. comi)jiMy must keep. ;>;!. 2;{2, 437, j 4.5.5, 407. Instalment Scrip— Issue of, 82. Interest on arri'ars of calls. 101, 24S. 448. 475. Inventories, lit. ; Land— .s'rr vmUr /{(O; Extiitr. Letters Patent — company incorporated fnini ilate of, 2:!(). 4;',9, 4(i9. l>ominion, fees on, 429. list papers required fur. 431. notice in (Jazette for. 432. existing compaides ma\ appiv for. 457. fees on — f>cc idkIit /•>*•«. forfeiture or revocation of. 213, 230. 273, 402. 480. formerly only petitioners were in corporated, 37. fjninted on report from .\ttiirnp> Creneral, 407. incorporation by. '2'J!», -i'M, 4('.7. mav ask for extended powtrs. '27 ■, 440, 458. limy be refused. 'J'i'.t. notice of ;;riinfin.i:. 2;)0. notice of issr.e to be jflveu by com- pany, 439. number of applicants. 2;{2. 437, 4t'.:. I petition for, retpiired, •_';{0, VM, 4i ,. >it ):■. process :ir, i';;;. t« of rniimlM iiy appi.int an letters Patent-Co«//„„,,/. '7:-s! '"'"""""^ '"• --». ;> 4-,-, '"I- M,i|,r„iH,t. traiisiVrs ' L'47 •^77. ' ' (Hvi.leiu], I'd-, 47ti eiKrit's, 478. I'JiIm- st;i(<. III. .Ills, liT;; •;.,-, '' '"■'"' I" sli;,ivl|n|,l,.,. 47V ■ ^'KN'KK.AL INDLX. 517 '■'<•.. Ml. " Limited " - 4(;(». pa<-N;ii;,.s, rtc, J);; .pi') '"••!>• !'<• aI,l,ivviM(..,l. ;;l', ■_-(;; „,r, l"'"i'll.v ini- in,„.„s,. „f. -CI. no. |,';o may li^ rciiiKt,.,!. 4IO. '"" '" ''ll'ply to .Vll;i:„ .nni- paiiifs., 41(1 ^^•'"•" -nns, 1,0 ,|is„l,,,v,.,| i„ „,,„„„ 'illlsi.li. (illicc, rlc IDS 4(10, ^■fln!.. siz,. ,.|s nil,..;. ,v,,r,l. 4>1, 47.S. -" "mited liability - Wa^L's, 20^, -jr,!, ;;.,•> .-. advanta^Ts (,r. i. wa«js, li,),,, o,,- ...,^^ ,_..^ '"•^^- '■"••-mVl ,„„, ,.op,„li.,,.„i, ir,-. (onuinatcd, l.VJ o^- .. ""!!!: """'i'r '»-f^. ;!!•!. 4X7. prcscrvf. .'!!». L>74. ■ ^ l'> .'HlKMlMt m.|,„i,i .,M sturk, l.-(. -.-P) 4.)3, 47"). • - • . list of Shareholders .V,, ,f, >„>;,.■ How proparrd for iiioctii,;:. s.",. i'"'. -ird/'""''- "■" '■ "■■'■^'I- '"« A««o"«. .«d Note. ,„,„„„, "iorl;;ii-:(.(.s, 2r)() ■^'^*- when capital thanw'tl, 2:!!t 44-. Manager- ^baroholdors. less ,l.a„ fivo, ;!,.. _ "-»-MiMa,. '„..;.• u'L,,,,..,,,, ,^^_ I'ibel— Action for l,v ,„. , ,,, ^'' • '^' ='«"IIi^t coil Manaeing: Director I'iiny, 39, license- Jipplioation for, 41 ; corporations rcqniri,',.. doiny bi not requiring'. 41: 4i; L'OS Manit tar uh Married AVom "III a servant. Slock, 1'; etc.. 4!)!>. iiay he i'l,t;ii||,,|| .(.,v^_ len as siilpsci-il„.,.s f,i ^;-^-iM.out, p,.o,,,,i,., penalty for, 393, 419. Meetings- -adj !"iii'iu.(l, SS, J."7 iniiiini; <'xtr.i provincial 393. foes on, 213, 420, 4: may bo suspondod' or" notice of grant of. 41s I'l'oof for, 394, 417 statement of, iss t^'onipaiii aniuial, frcruTal and -'55. 445. 472. laisiucss at. (!N. ■special. c made. ■tncclled. 419 not bo sonitincers f-'Ogi.slatnro, 422 "f'd to be madt candidates slioiild at, 207. •liairnian to bo olcctod 77 'Itroctors, SO, 89, 90. 208. 'a king order Li roqnirlni;. 414 en, (lotinition of. 149 s not •' doing bnsino: diss order of bn 'Oliition of. 25; mos s ai. 9; 'ii-st, of sl.areliolders, 71 77 M^a.ority of votes at 44G '•>. 1'57, -JiU; J* if m 51S GENEUAL INDEX. ;i^ it Meeting*— ('Ml/ IX i/rrf. iiiiiiiitcs i.f. s:!, SS. 100. 2<;i. iKiticf .>f, (i!t. ss. i»r..">. -jric. -n.". 471. .SVv «7«f> utiilcr Sotirr. (ilijfct i>f to ln' statnl. (i!(. I2r»(l. "riliiiiiiy 1111(1 ('xtraonlininy, 71 piill. wlifii (li'iiiiiiiilcd. S.", li.'T. im'sulciit i> preside, S"J. '2Tu. (liioniiii iit, 7:5, S.",. liOS, 2.".(;. -147. reiiiiirks iis to, OS. i'( solntiniis at. 7<>, '2~u. srnitiiieers should not lie candidates, Naine»— Minnten— Continued. seeretar.v to k« v-p, S.S. .separate liooks advised. I'tir, H n. to lie ki'pt, liOl. Mortgagre, detinition of. 14i). direetors nia.v, cunipan.v's pio|MTi •_ML', -J"., 44S. Mortgagees, not liable as sliarelmldcr Mortgagor, iiia.v vote. Ii40. 4."»4. ^ 1 L'O , sliareliulders iiiav call. I!.'t7. iTiO. 4riS, 474. cnii oiil.v act at, N!>. in arrear (aniiot vote at. -'u, 44(i, 47.-.. votiiii: .It. 74, l'."t7. 440. 471. elsewhere than at. void. SO. when Iwci-tliirds vote re(iiiiteil. 74. •J.IO, •.'.■il, 44:.', 471. where lield. 71. '2",, 44.'. 472. Meiuorandnni of Agreement and stucU book. li.",.-,. -J.si'. Memorandum of Association l>ritish ('olninliia. what to contain, 40--'. piaver In alter. 404. Mining Companies- Act. Ontario. :',S{\. (Juehee, 4.S0. li.v-jjiws for sale stock at discunnt. .-ISO. :',oi. 4.S7. extra provincial, licenses, etc., Iol' :\u:\. 4.S0. for works on niininu' hinds. Mi)0. forfeiture of shares of. ;!00. 4.SS. •' no |icrsonal li.ahilit.v " on lionds, etc.. :;oo. 4SS. pcnalt.v for non-use of words, :'>Ott. 4.SS. no persnn.'il liahilitv on shares, ;>01, 4S7. powers of. .•!S7, 4.S0. returns to lie made, .".O:!. 4.S0. s;ile of shares lielow par. '.\S',K :'>0'J, 4S7. stock for non-pa vinenr, .">on. 4.SS. shares not less than twerty-tive (lilts ejlcll. '.'tS',). stock (crtihcates. I.'!!, ."{.SO, .">0:', 4S7. Navigation- ten per cent, of capil.-il to lie suli- coinii.-iny for, valid. 1202. scribed. 8S0. Ne\ir Brunswick- Minutes— How entered, 100. tariff of fees. 407. re.idinu; and sijriiliiK of. 8.'?. I where Act may be obtained, 40 applicants, to be in full, 'SV2. l.".T. 407. directors, etc., to be entered, 2'i',i, 4.-.0, 477. Name of Company — chanp- of, 2;to, 244, :{'.»7, i::'.'. 440, 40S, 404. compiiiiv itself cannot. 2^. 212. fee for. .'500. 420. 4S(I. forms for, ;!0!». 4:! I. (Jovernor may, 2:>ti, 4;>!>, 4fi^. not to alTect suits, etc., 211. .".OS. 440. 4(iS. cunllictiii;:, exani])les of. .'>(». deed to company in former, 212. defaulting' or defunct conipjinv s. may be ^'iveii new, 214, 2.'11. JnT. display conipnisory under I>nniini"n Act, ,'51, 40tl. optional under Onl.-irio, :!1. exclnsi\-e use words in, not allowed. 20. hints ;is to. 20. 2;51. '• liniite(l •• ill. ;n. 242, 40S. 4<;ii. in.-iy he abbrevijited, :!2. L'l.;. -1(10. not necessary on packai;' ~, elc. 4tlO. penalty for iioii-nse of, 211, 410. Iteiialty for noii-displ:iy. 4i'iit. proof of. 2:5.-). 42!t, 404. •■ Ikoyal."' " <,»iieen," use of w.iiiN in, prohibited. 20. 2:51. similarity of, •',0. 2<».".. 404. " The " omitted in certain cases. L"'. 231, 42.-.. when m.iii cannot s(>ll or lend b'-. for, JO. 'iKN'KUAL INDKX. fiiiiiiur, '.js Non-re«idcnta- "'^ NiihscrilMTs for stock. l>4 tlirtH'tors, 1'4. 4;{7. 471. Non-user. ,h:u-tvr f..rlVit,,l for, ;!!» -7;; -Jti-'. 4.S(». " No Personal Liability "- •'II .vriiii,...,!,.. , .((•., i„ niiiiini; ,.,,iu- p'lii.v. ];;i. ;{!Mi, 4x7. North-West Territories- tariff (if fees. 4!»1>. yvlwvr Act iiiiiy 1„. ohtaiiicil. 4!i!». Notes— <'ii(l(irsciiiciit ,,r. ]!>S. Jiiii.lc l.y .iiiiccrs l.iiiilin-. in; "nr, 4.»!>, 47s. •"•-'ill Mil. II, ,t iii.ccssnr.v, JCC. 4.V.». 171). Notice— I inljdiiriicd incctiiii;-. SS. aiitiiciiticatiiiii of, i'."(S. ' l..v-|,nvs IIS i„. ,M„v |„, ,„.„,,, .^... ■1-i'. 471.'. j I'.v l">si. 70. L>.-,s. 4.".t; <'\ •'.".;! 4 (r. -171'. ■ " ■ • ■••Mlracls Miiidc l.y. l.iniliii«, IKi -'•:in. L'l'.C. 4r.!», 47.S. incsiilciii. cicciioii of, S(i L'.'.i 4 ir. 472. pinvcrs. rciiiiiiicralioii. crc ■^liall prcsiil,., d], 1J.V7 iviiioval of (K!, I'lo, L'.-.l, i>,-,;| 4},; ••••payiin: advances lo self (17 I•''^i^'llalin|| of, (ill, •-'•••ivlary ciisiodi,.,,, ,,f ivconN, r,-\. 'Illlics, ch-., of, (IJ. iiiiist, surrender I ks. eic •;.". ""'" '"" '" !'<• in 11.11 ,( |!f." "••■■•■^iii-er, dnli,.s, el,.., ,,|- ',,- "■ Vl.e-presi,|,.|,|, his p,.\vers. el,-.. i',:\, • ■li'ilioii ,i|-. 41,; One Man" coinpiiny I,-,.,! .,_ j|s. '■^"i"- '"•• "H iss, V elKir.er. e,.. ^^ /««;'" '""U y 4t.J. , Ontario Legislation liow .yiveii. 7(1. I recenf cli;in-es in, -j'j] '"'.'/:. ,7r,lisp..|,se,l Miili nii,ler' ''';';:;.';"" '"■''■'■"''"" '"'"I'anie, l,v, ii'iisr ••oiiiaiu •■' lindi',.,!.- ,„• .-iMnvvi. ®"*"»'*o Mining Act, :;sr,. of'llloui^:;,;. 1^1 ,;.:; I ^'^id-up Capital X,. ,..,;,//„, "l'l''''-i'i<"i l'"i- <4.ar(er. ,.|,... 4;!-' ■^*'""J^"^»il» ■"nverie,! inn, ,., .,„,._ .all!''L>n^'" ^'''" ""penalties, .".s. <'li;iiive of 11:,, lie. ;!!i7 (,;<» ' '"',' '■^"•■ii"'"vin,'i;,l ,nnip,-inv ih.in- iwad o,ii,..:. 2.-;i 44- 7T '""""" "'■"■""•• ■^'=•• '•'• '••dse sl;i|,.|||. Ills. -\o\. J"'">. 471. • Iireciors' iiic(.tinj.'s, S!). forfeitiin\ l.-.n, 20(1, •>4s 44<| jss ;:ranr of ^ ..,iiir,er ,,, •...„•;„;.- ""•'■'i"^-. N!», -jrc. J5.1. im. 171 flow -iveli, el,-., 7(1. l'<'.i;islere,| do(-||||ieiits •>1(; proof, e.,-., ,„• servi,-e ,.f, ".-.s l>ii l.lisliiiio. ,.ert,-ii,i l.vd,-ivv< ■';;s --.i •*4.», 471, ' "■ ' Nova Scotia, Tariff of fees, .-,(.„. Objects-.vrf also foirrry. ' ••are ill setting: oiil, .'!•' of •oiupaiiy. 2;!L'. L'.-!;!.' j;.7. ^.jy lalse ,-1,1 i-i,,... 2.-.:;. l.-.j. 47,s iioii-iis,- ,,r -linii,,,,! •• ■•'};! 4ii». 4i;i. " "" pers,,ii,-ii lial.iliiv ■ .']lt(l. '"" ""liiiiiu- .innn.-ij reliirn -'14. Id.-,. 'ii''il(» limitation of. 244 4, J,; '•'•"i'>'s'"n of. L'44,"j.si,';!,s.- 4..,) when sl.arel.oMers less tlian live." ;>.!» '4'f'' 520 CKNEllAL IVDKX. Poraonal i sinli', sIcm k to lie. 1 IJ. Petition Prospectui — (■•pmniiiiii'ins trui i-iiiri', i,,|- i<,r. •10.'!, t'tli'i-i (.r iiiisic|ir'('S( nliitinii ill, |s. jiiiliiip|ici- iiiscrliiiii III' iniiiii' ill, Ki_'. iiiMocciir, inisrcprcsciiKuinii in, -Jis. liiiliilit.v of ■(lircctoi'H for, iitii. fn s|iccir.v conlrMcis, 4(!1. \iii'i,iii(iii IMiiJi, III. liliiiiU forms for, iun,v lio had, 2.'14. for clmrttT, i-ic, iniiii'iils of, •j;iO, L'.'i.'i, -i:!.'!. i:iS. U'J. Mm. lici'uso, olM, siiiMiiil iirovisidiis in. '_'.".0, :,':!}, l.'iO. Petltlouera— iii'iiii fide lioldors of sliftrcs, '_'o4. minilicr of, '2',\'2, 4'M, 4(17. Proxy— w lii'ii omI,v, iiH oriMirntt'd, o7. directors < miiikiI ii. 4(!4, 4(1.".. creditors wlien issued, 241, 4(55. special provisions as to, .">77. Preliminary expenses. IM. ;i74. President -.Vcc inuhr ()/li. extra provincial eomp.anv mav u\v!i, 4 IS. 4S4. forfeiture of, 101, 24ii, foreign eonipany holdinir. in < in tnrio. l!tl, 41S. 421. restrictions ns t(» holdini;, i.'4(!, 4s ! Reconciliation Statement, lo'.i. Regulations— (U'))artinenta!, its to iiotic's. etc.. 235. difference between, aud ''V law of directors, 01. Reincorporation ui:. compan 278, 4.-.S. Reports — Sre also /, fiis. approval of, S4. Representative— eanuot be a Hrni of solicitors. 417. licensed corporation must appoint n- sideiit. 41."). ' Reserve Fund. Rest — i company m.ay create, 27, I (Ifcisioii iif cliiiirnuiii iis in, '27>~. \ • Ictiiiiti.iii i>(, "tl. ' ilill'iTi'm i- lii'lwi'i II, iiiiil li,\-l;i\\, !ir>. ; for fall, 81, 'Jll, i to pii.v I'lir pnipcrl.v .Willi sliaics, S'J. Returns - Act I'cspoi'tin;;, 40,". Iiliiiik fiiriii.s I'lir, si'iil roiiipiMiics, L'<;r., oaro ill miikiiiLr, iicccssni'y, HI I, l^iil. fi'i> uii lyliiit:, -JTh, 411. -IJl. from cipiiipiiii.v wart'houwin^' iiftrn- k'liiii, -»(Mi. I'Xtru provincial cunip.iiucs. 418. iiiiniiijr companies, li'M, 480. tna.v 1)1' inspected, "JO-. meaning: nf, 4(t."». must l.c made, L't;-_'. rStC, 41S. [posted Up ill ollice. ;!(!4. sent Provincial Socfetary, -tJ4. peualt.v I'or not makin;:. -('A. ^ limitation oi'. -Km;. when Mill re(iuii'ed, '-'tl-l. | Revocation of Charter — .Vi; inidn- I l.i t'dtiitt. I "Royal." nse ut' word in name. '-'."'l. | Scrutineers, candidates should not he, -07. Seal— .\dopi ion of, M, l!lU'. | form of, lis. must contain " limited," '.'A. -\-, Hin. neces.sit.v and use of, lis, IJ.'IS, \7>r,. uot necessar.v on contracts, etc., li.s, 2<;y>. 417. 47L'. SliareS" .S( (1 (//.v(; sicniial currency, shares must be in, 37. d(>cision ns to title to, 2fiO, 4r.-J. detinition of. 122. Share*— Coiitiuiird. difference between capital and. 121. enfiu'ceiiieni of pavinenl of calls on 248, ■i4!». 47.".. forfeltiuv of. irit), L'oi;. •J4S, no, 47.">. 4.88. forced transfer of, 21t!. inniropcr I'ancellation of, l.'.s. issued at discount, 1.".0, 140, 217. 3S!i, 487. on windinj; up. 218, for other than cash, 2I(i. 218. joint holders of, may %ote, 240, liability on, coinimu.d wiien for- feited, l."t»;, 440, married women and infants a-- .u!i- scribers for, 2;j, 205. milling company's may be issued at discount, i;!o. ;;,S|i, 4S7. new must be same value as old. 2;!S. Uot to be issued at discount. 12J>, 217. not to be less than 2."i cents, ;}S0. notice of allotment 21, l."..".. number and amount of, J.'Il'. 4;i7. to be entered in books, l'.">0, 4.".o. 477. pjiid for in property, L'o;j, •_';;4. up in full, i;!S. Ii,irti;il piiynients on. JO!i. p;i,\ iiieiit on, ill advance, 1 10. interest may be allowed, 1 ]U powt'r of ji company to aequirc its own, 1.'7, 2 is. precautions iis to transfer oi\ 1 | |. preferred ami ordinarv, l.'J.'i, L'1.1 240, 4(;4, 47;;. lirice of, lo,; redivision of, 2:!0, 441, register of, must be kept, 2.V.t 4."iO 477. rciristered willioiit ccinsent, l."i;;. rev'istry of tr.aiisfer of. how m.ade, 140. remedies for iioii-pa\ inenl of, l.'t."!, 24S, 441). 47.".. restrictions as to transfer of. 143. rifiht of transf( Sh.SiTe%— Continued . tniusfor of, 14'_', 2Mu 4r.1. 47'.. five. 1:1s. from (li'ifiisi'd shiUvlioldtT. 147. 4r.'J. to irrt'spousilil'' iktsoii, 144. iiiipiiiii, may lie iTfuscil, 144. Ii47. 4.".!. 47.".. miliiiid imiinuits on, nui.v be C!ill<" of, 14;'.. whiMi iiaynient of essential. 204. .Signatures not paid in easli. 1.">7, 234, 444. Shareholders— N(c also Sliann. Shareholders— ("o«^HH((/. liroeednre at nieetinsrs of. 7i. iH'lation towiirds conipany. 172. each other, 17.".. rt'lease of. 2(Mi. restrietinK i'i;.'lits of. 21 Ml. i'i;:Iit of, to call nieetin;r. 4."S, 471. set off delit, IM. l.uv claims ajrainst conipauy. 184. vote, 207. 2.".7, 44C>. wronsis of, 177. Show of Hands— Vot in;;- \>y. ^4. liow \\itnesscd and vci'ilicd. 2;'. I. 428. ireholders— Mr ulso Sltann. Special provisions- actions lietweeii company and, 2.".'.). j^ i,,.ttcrs 1 atcnt. 2S. !:'.;», ir.s. assent to iiUra n'/cs contract, ISS. impoftance of, 2S. can act oidy .it lorpor.-ite meetiii>.'s, warning as to, 2S. SO , ■ , ■• 1 •!■ .r 1VJ Statement- deceased, hab.hv ol etate ol, 1,S4, .^^^,^^^^^^_ ^^^^^, ...xpenditmv to Ik- . evidence of titness ol new, 144. .«*",! . ,, , cxpulsi..n of. 17:!. : Statement of AfiPairs-s.- /.-/.,„... frauds of majoritv of, 1S2. ! Statutes—TaliU' of. x. in anvar caiinot Vote, 257, 44C., 47.".. j icspcctiny Omaiio ('nuMiaii- joint. may vote. 24!>. | '''^- I''*' "'• --•'• liability on nnpaid stodv, l.'.O. 24!», 1 statutory Returns— .vi c l\', 44il. | how incnrrcd and ri'pndiateii, j 1.12. i on aiiandonnuMit of I'nterprisc, | 17('.. under minin;r acts. .'!!(1. 4S7. when 1' .s than live, oil, 274. Avhen stock sold at discount, 144. j li>t of. for volinj;-, S.".. ' loan by conii.any lo, forbidden, 2(!7, 4.-..-., 47;?. married women .•iiul infants as. 2.">, 20.".. m.'iv call nieetinu's, 2157, 2.".<1, 4.".S. 474. ni.av inspect books, 102, 212, 2(.0, 4.10, 478. must approve of certain by-laws, 2;?0. 2."»1. 2.14, 442, 447. names and addresses in books, 450, 477. ! n(»ti<-e tipon. by j.ost, 4.10. i pers(.n cannot bo eonipelU'd to be, 1.13. preference, may sele«t directors, 44, , 240, 404. 473. I 472. amotmt paid in on, to be depo^iii.l, 408. of capital. 2:12. 437. 407. bv-laws alhitiny,-, may le made. 2lil. 440, 472. for sale .'U discount or pn- minm. 130, 447. eertain amount, must be l.iktii. 427, 4;'.S. 407. (lasses of. 120. fomi.any itstdf cannot incri'a-c. or decrease. 13-1. 20... how may buy, in oilier company, 207. not to buy, of other con- pany. 471.). deemed personal I'state. 24t;. HI. 474. definitions of pledge, mortgage anM lien <.f. 140. difference between caiiital. :i'i'1 s'hnres (.f stock, 124. fietitions, paid up, is it void. 1'.- ' how .ioint holders of, ma.v vote. 21'. ("iENERAL IXDEX. ! Hi'. Tl. i-iiiy, 172. 523 liii;r. 4. 4.'S, 471. iinsi rcilllli; liny. 44r, I'y, .S4. vcrilicd, 1 .'."M. L'S. 1, 4t;s. HUM' to l«- <■' ' It! hi Ills. irin < 'iiiii|iaii Ix'iliinin. 14. LM*;. Ill, III' ih'l)Osilri|, 4;;7. 4i;7. <■ in.'hlc. '2 |ii. oiiur or \>ir- 7. ill' ImUcII. lit illcl'r.l'-i'. . 1:3.-.. 120.-,. y, ill oiliif .' (itluT calli- '. 24t;. 4 11. mrruai:*' an'l iiliital. am] void. r..".'. IN vote. -Jl''. Stock.~C(,„tiiiiud. iiHTias,. <„• .l.'cn.as,. ..f ,'a„i,,| .,-.. ®"**»-''"""/'//a/. •*■*-. -»<»>. ~" ' ""•'"•IMiniii,,,!. l,„w , ,■ , Jio'^ility ..!• nuMulHTs o„. mo •>!., -^' -*-'• 471'. '"' '"• ■*-''^ -*<•"'• ' ■ ' ■^'•'■^•"<' "11 .unip.'uiv -..s rr 1-0 "••■tliiid.s oC i,''v VI ««•„ 1 iK't to Ik- issii,.,! ,,. , . "•■""«•, 4(;,S. ' -■ '' • .o.;»";;::';:'t;::;r,^^- ;i-:-'f '-"" .r. „., I)<.r>jn,...l ....... .""'■ '-'^- llotlrc (,l ]s.si,,. ,,(• ,, , '""•I'aiiy. -441. '■ ^'''■" ''.V ... n.lllTCd 1: i';''';«"i«i i'st>no, to 1,,.. 444 I'IlmIko of. J„nv ina.l,., ir,(. " ■"••'fm.nc,.. va:,, o,- .^„ -^^ , . "'•■'■^- '"• '. .1.0 ),.. s,,.„..d i„ „„,i,i,. , 4;:7 1 j;;:' :;;;^:Mr "■•-"'■•■ 'i-ty..;, '•;;'nsr,',. of.--,v,,, „,„^,,. ^.^ ^^«"'n.,fr. rn,.|,idd..„, ,:;,, 14 -.-^ '"^li.'in-lKdd.'i's iM'iv" - . . • ''■'"'" '■^•^'"'-I "i'-l.-w |„r. 14,1 Stock-Book- Snl,,..nl„',... „, ,.,.,^. ,,^, lioiiiid, L'L' • Stock Ccrtific«te-.sv. ,..;,, ,,,,,.,. stock Holdcr-.sv. ..,.,, ,„„„.„,„,,,^. Stock-in-trade-A,.,..„„u „r , Stock Ledger. !)!». Sub.«icrlber— M.'lii.(: i-oinii.'mi.'s." 4s~,' ■\-.^r.'>,M',.,i„. „„, ,„, -^^^ , ^^_^^ Ten Per Cent or 1 "The" , ";• '''• '"'• -•^- •- Transfer '•"l'^.'""^' '"■ I'-'Hi r,„v, 1-17 iv; •4 (.J. •. I.I.., ''.^' "li'litor to ((.Mip.'iin- 4 ,•; "■;;^'lnl.m ;,nd iinpn.p,,. ,s::. j,- '"'U- made, I (1; 'i"||ility or diriTtors ,„, ; , ,. o,~^ ■"" y'lli.l until .'n„,vd, 217 r.l Iir.'ciMitioiis n'spt'.-t;,,^. 1 , , i«'_ ivfus, d. U4. '217 ■li)!, •17."). '^vhcn company rrfnscs 147 ^vhcn sl.an's ,raM,.n.i„o'i . otlicrwi.s,. iiijin |,v 4.-,-. ICstilcthiiis ii.s tu, 247 li^lit of, 142. r5 24 GENERAL INDEX. , Ui u Treasurer — Duties of, 05. Treasury Stock — Definition of, 124. Trust— Definition of, lb. company not liable in respi'tt of, 247, 401, 478. Trustee — may vote, 24J), 454, 476. not liable, 250, 454, 470. Trust Fund — Unpaid subcriptio;is a, in United States, 173. Underwriting— Definition of, 124. Vacancies in Board Directors — See vmler Ditxctors. Vice-President— /S'te under Officers. Vote— Chairnian to have casting, 7.'>. 257, 440. elsewhere than at meetings void, S'.i. of two-thirds rc(iuired, 74, 239, 251, 442, 471. open, iind by liallot. Sli. 251. 44 ;. 471. to be computed on face value of stock, 74. who may, 75, 24!>, 257, 440. Votes of Thanks to Directors, Man- ager, etc., JSS. Vouchers, 108. Wages— Directors liability for, 2)7, 3l>2, 455, 473, 489. ■c casting, 75. etinjjs void, S!» 1, 74, 239, 251, Si;. 2.-)l. 44 ;. face valiu" of 7, 44(i. i rectors, Man- ty for, 2 17. (Knmbian Uegal davbs. B B TORONTO. SATTV, JiLACKsTOCK ur • „ "■''■i:.E:S5.----s^.;fcr::;::t;,;;rr'--''--'^ ...- "^:lM<^:l;|• |.. i,,-^^. jy^'rox, DUNX ,, BOfLTBEE "'• -^l' '■".K B,,ri,i„ KK. Barristers, Solicitors, Etc '■AM//'/./; nrii.hix,^ To Ho X To •I \,MK> ■■^M \W. ■.-' r.-..,.. .«,,.., ^.'"'■"""•'' '°"""»". Etc. ' '' '"'■'""" ^v,„,w/ ■l\„.,.r ToRitXTv, . '"'"'""'•'" I'.iiil.i;, 1,1, ''"'■Kphuiif .•>(;.;. ' " ' " ''-i-^.i/y./. SJ^IiaiJK ,v SHAW '"'"^^^'""--.-'av" ^ Barristers, Solic rs r«„ , "^•— "' ' ..-^ ..,,, :,":tt"- "'"'"• '" _jr^'::^--^^^„„„„„ , ,,,,,,,^ •■;- '--. s„.„,, _ '^ -^■'•-"(■lati,,,!. '■'■'^^^ \. I 111, TUN. Jf ILTOX cV W0()J)S Barristers and Solicitors. Company ,n„il',,r,,„.s„li,it,,,, |. r O.viu.K. •'IV,K,,T,,.,sr." ■ 'i'KI.KI'MnNK, -JDj.-, ■'^ii'\K> B. H,„,„^ mm ii I' I 11. CANADIAN LEGAL CARDS-Continued. \\7^ J. ELLIOTT, Barrister and Solicitor. (Ifkices : Saturday Night Building, Toronto. Specialty— Commenial Law ami Company Work. Solicitor -Uniteil States Consulate. Toronto. — Till! Bicycle Manufacturers' Association of Canada. R. C LbVesconto. William Juhnston T eVESCONTE & JOHNSTON, Barristers, Solicitors, Notaries, Etc. Cable Addre.ss, " T-sVe.sconte Toronto." Telephonn (IS'.l .\(tti(iii(il Trusts Chiiiiiliiiw, J(l Kinij St. lu'st, TonuyTo. A NGLIN & MALLON, Barristers, Solicitors, Notaries, Etc. Offices : Land Security Clianihcr.s, S. W. Corner Adelaide and Victoria Sts.., Toronto, Canadfi. Frank A. Amimn* Ja.s. W. Mali,o.n\ LL.P.. T(hjJ.' Toronto, Kdward I'dake, (l C. S. H. I'dake. (,>. ( '. A. A. T-asli, (,). C. Walter Cassels, (^ C. A. .Melvenzie. W. ll.lilake. Hume Blake. E. F. Blake. A. W. Aiiglin. T. D. Law. W. A. H. Kerr. Walter (low. Miller Lash. Cable Adilrcss : liristol, Toronto, Tclcplione No. 903. B HISTOL, CAWTHIIA c^- BAKKER, Barristers, Solicitors, Etc, Lon Jia/i St., Toronto. Ednmnd Bristol. W. II. Cawthra. Kdward Jiaylv. K. K. B^rkei ni. CANADIAN LEGAL CARDS-Continued. nUHKY, GUXTHER ^EYllE CaMLK AlM.liKNS, "CmuKU." ' .JAMKS \V. ICKRY, (/. c, Crown Attornov for tl»- Citv of Torn,,,,,. I!i;i;i>.AMj W. KVIij;. TklkI'IIuNk 11,-, I KI!.\i;sT K. (J IN Tin: a. 'I'lloplloiir Xo. 33\l IJELAMERE, liEESOR cV- KOSS, Barristers, Solicitors, Etc I. i>. Dilanicre, Q.C. Hit. C. C. Kos.s. ]/■ TXGSMILL, HELLMUTH, SAUXDEliS ct- TOiriMNCE Barristers, Solicitors, Kotarles Etn I. 1 . IWlun.th. Dye- W. .s.u,.d,.rs. CiibleA(lIK1IS,,N ( ', , , Ts W, ,|, p II . .Il: (al.l,. Aa.l!v.,s "llaniiuny.' '' """"'"■ 'IVIi'pllnlu. X,, ,.|o * '1 I 'l ,1 w h I 4 IV. CANADIAN LEGAL CARDS- Continued. M cPllKllSOX, CLAHK, CAM IM]|":iJ. (V .lAIJVIS. .I.PIIN Ml l(l!\V Cr.AUK, Mi rilKltsns. IM'. .Mcl'llKHSDN, It A,, I A. H. <; C. (XMI'liKI.I,. RC. .lAlt\ is iiiid IMMi m.i-,n. IS CI,. /'-' h'ni;/ S/rr,/ ]\', -f, 7'..,-.,//,,, I ,i,nn/,, (':iMc .\ililiis.-< " (hiiihir, Ti)roiito." Ttluiilionr i;iol. r>YCK^rAN., KlKKPA'nurK (V- KERR, ^ Barristers. Solicitors, Etc. 'rfli-pliiJlir N.I, !t:i(t. Cum,/.' I.ih- linilitiini, Calilr .Vildivss •' ItyckliKiii. 'rwmiitd." ',i, l\i,i;i SI. Il'-v./, Tl, . . . T(>/tO.\7'(). 'I'ki.ki'ikink \:v.U), ntants. i:j^i)\VAl{l)S cV- HAKT-SMITII *■ ■* Chartered Accou ]'l\liirt-: ill iiKittcrs atfi'ctiii^ tlic t'uriiiiitinii, iiicuriidtutioii. iiiaiiatrcini'iit iuid iifcniiiits (if i(iiii|i.niiis, TOIIONTO, ONT.MMO. Ofiii- .1 — I'liiiil: I'/ Ciiiiiiiii'rrr Clni iiiliir-<. 'ri'li'pliiiix' llli;{ Oeo. Kdwahdk, F.C..\. A. II au, Siinir, C A. STENOGRAPHER. E. NIELD, C. S. R. LAW, IVIEDICAL, AND GENERAL STENOGRAPHER. KK.IOUTlNIi UK AKdf.ME.NTS ANI) TKCll .\l( AI. MATrEHS A SI'KCI AI.IY. Commissions to take rviilcncr in rniiiiiln or I'nilfd States cari'fiilly I'xi'i'utfd. 79 ADELAIDE ST. E. TEL. 134-3 TORONTO PROMOTERS. .TO IT IV H. •TlCWTKr^l^ Ac OO. Financiers and Promoters. 303 Temple Building, '"'".' -'■" '^ '"i"p:"u.-o,.;,,ni/,.,i .-.n.i ru..,:H:.-.i. TORONTO 1' 11.U V. w CANADIAN LEGAI^ CARDS Continued. FORT Frances! I "It rnnicrs. Out.,,,; .n.is,,:;;:':,,,,";:'";' ;^'--nM, ,,_,, 2^' " -l"'-l:il .III,.,,,,,.,,. 1 GODERICH. ^^ l'i;.\ Ti "lllls I loll. Si)licilors fi.r'f'hr I H.,l..| ( ''Aiii.i.: ,\ j'iiil> "f ll.iinllr '11 M. iiuit.'il : ■n,,, V ' flaiiiiiinii. I ■^ ■■;-^,''l)|.K.S().V. II ",■ Thr lliin.il o.vy. *>ni.T,,v. ( .^.^.j .^t. '■I'li'-iiM riiili'.l ; I (;otJ . I'esl. l.iiidU'ii l''",i.v, I,iriiit(..I ,■ Tlif i '.;',;''' •>'iiiiial Ki,v I 'Wiy.v Snri, I iisuiMri.T c, '"H Sl,,ck Vill-il; •'< ( 'i ' , I MIIII.Mi; ril.. / '""''■''■ Tl.rt!„j,,| \ .S. J! ''''■''- '^|-■t^.i;c,;\::;'lr;^;:!.'■--''^^ A Kill, ami I'dux'i (\ '■'"■niir.v ( ■ .vliiK r ( . "ii|''iriy, l.iiiiii,,!; M m m m I .: m II'; 1 )3.!-- i!.A. lb IS 1 VI. CANADIAN LEGAL CARDS-Continued. HALIFAX. N.S. H. V. Pkauscin. \V. H. Cc.VKliT. T3E ARSON S: COYEllT, -L Solicitors, Etc. Itcihhn BuiUliwj, /,■'> S»tC!ii, Bsii'i'isici's. Ulc. Canniln Llf> /iidhliii'j, MONTREAL, Cancvhi. Comiiiisaioiicis for Otituiio, Manilolm, Hiitisli ('i)luinl.iii mid Noitli-Weatorii Teriitoriea. I'iilile AiUU-ess— " MoiUyil'l'- ' It. n. McdiiiiioN, Q.C. Til. Chase-Casuuain, ^^(•.. M.P. Pekcy C. Uvan. VICTOK i;. .MiTCllKI.L. KllDlAlU) F. SlIlVEYKK. Vll. CANADIAN LEGAL CARDS -Continued. AV KITE, O'HALLOUAN ^- lUU'HANAX Advocates, Solicitors and Attorneys. I{<,(j),i.'<, Si/J-Sn:, Xiir York- Ll/i /liiililiiiii, Miinlnnl. CuimiiissioMris fur (^nrlii'c, OnlMiiii, Maiiitc.lni, Nuvii .Scoiiii, Now liniiLiwick, liritisli Ci>liMii>ii:i : Nf«' Yiirk. t;iri(>.l G. F. O'Halloran. A. W. P. Buchanan. NEW GLASGOW, N. S. I >. C. KR.\>ii:K. J. I,. jKNNISnv. R. H. C.HAHAM, I.I, n. il^lLVSEPi, JENNTSOX cV (IIJAHAM Barristers, Solicitors, Notaries, Etc. y.,r(;l„^.i,ui; . . . NOVA SCOTIA. Sdliritniv f.ir Nnva Scntiu Steel Cn, I >iiiiiiiiiiiii Ivi-terii l!y. ('n.. Mtc, J'ltc OTTAWA. 1 ^KLcorirr cv jmtchte, C'lil.l.- .X.Mivss " liili-il, oitiuiii." liui'rl.'>tei'H, Kolifitor.s and Notarif!«. Oiilarii) iiii'l (^iii'lii'c. .T. A. lllTCItlK, Cniwn AiMriu'v for Ciiikloii N. .\. Bi;unri!i, LT,.D.. Q.C. M.P. Advinatr 1,11- \iii' I'liiviniCMif tjiiuliei?. OTTAWA. - Ctimulii. c HEYSLEl} cV BETHIINE., Barristers, Solicitors, Notaries, Etc. .Sin'tiul -VtU'iuiiiii ;.'iv,ii in ili,. iiu'oriiorat i(m aiii! uilirr tiUsiiM~s ct "(muiaiiii s in I li'' Dominic III nf t'luiiulii ami rinvinrr >,( Oiiiai ii, 0_(Hrrs~IS, r.l inifl .:ii C, iilr'il i1,,(iiilni-s, Olhic-.t, Oi,t V. II. C'Inysler. <,».r. Cliailes .1. \{. lietlnine. F. 1'.. I'metor. Ciilili' .Vildiis- " i'liiysUT, (lllawa. Uefeienco.s- The t'liiiuila At hint ie Uiiihvay Co. Tin- Caiia'liaii Hank nf CDniiiien'o, ocawii. riODE cV- BUlUiTTT, I;;';:roae" ^ Barristers, Solicitors, Etc. SlIJIiYilir (',,it,f illlil I'^liliilllirillil rU AiJ'Ults, Oarlt t'.n Cliaiiiliers, 74 S|i;ulan\', l.iiiiilc'l. — rile i ienr.;;t; .Maulicu...C.iiiipany, l.iiniteil. — The People's ItuiUling ami Loan Association of London, i^c, S:c. A LFREl) E. ElUPP, -^^--*- Barrister, Solicitor, Notary Public, Etc, Ortiee* : — Sii/ir''iiic Cm'rf 'IikI D''/>"i'/iii"ii/ii/ A'i''iif. Rooms ,'3iuul 51 Cavletou Cliamlieis, 7J Siniiks .>^tioet, - OTTAWA, Out. \ 111. I 1 Vh I'l ?i ',^ m (1 I ■I, i CANADIAN LSGAL CARDS Continued. ^^^^^^^^^^^^^^^^^^^^'^•^■"■^^'■•^" ■"^^■^^^^^^^^^^■^^^■^^^^■^^^^^* "^^^^^^IBI^^^i^^^^MBB^iWBBM^^^B^ \ . TOIIN (lAIJUIAITII, Barrister, Solicitor. Etc. Siiiiniiii I'niir/ 'III'/ />! /nirliiii ii/ii/ .till ii/. HiKiiMs ."> ami li 107 .Sparks Strict, ( >'l"r A W A, ( tN T .MiiNia I'o I.CIAN. A .V V>. liAUW'A, PATENT ATTORNEYS. <»l/ir,', Cii/i'i/ cii'iiiil" IS "l>"'''". ''""'"'"• I', t). r.(i\ 1(171. K~ta'ili.sli ;.Siii;c:essi)rs 1m A. H\K\1'.N', C. K., I'.iiiril I vjnic) I'.ilcnlsni :i!l ■.■iiiitrii'';. >ii.i cssl'iil |iimm'( utii.ii nf ifjfi i.'il i uses. IS,S(. riKOlUiK K. KIDl), BARRISTER, ETC. '^I'/ii'i nil f'liHii "11'! Il' I'll ,1 hi'iiliil A'l' III, Otl'U'es : (liitario ( 'Imnilu'rs, Ol'l AWA, Canada. ful.lc Ail(hTs>' Ki.M. L ATCHFOIM), M( DorciALL i^- DALY, Barristers and Solicitors Sii/iff nil <'"urt II ml J''i rl iiiiiii iiliirii A;li iil.--, 'I'.lrpiii.iir 12.">!l lit Kl^iii .Str.Mt, (>'I"1"AW.\ llciii. V. \l I.atulit'uril, <,».('. .1. Lorn .MiDouKall, Jr. Kdwanl.l. Daly. MAcCRAKEX, HKNDKKSON \- Mcl)Or(!AL, Barristers, Solicitors, Etc. Su|iriiui' ('mat and 1 •(.•|iartiiKiital .Agnits Solii'itois for Tlu' OllaWii 'I'liisl iiiiil Dijiosit ('onipaiiy (l.iiuilicl), 8olifiloi> fiji- Till' Itojiil ISuiiki>t( ;iii:iil;i. l'ul:li' .\ililii.'S.s "I'fiuk'r. ({fins, Cinlni/ Cliiiiiilii r.i, OTTA If.l, {■'lufl'i. .Icihii I. MafCraliiii. ( Ji uryi- !•'. J Icndcrsuii. 1 1. .1. Mi.|)cnit,'al. l"\7ir^I^IA:\r C. :\[cCARTHY, Barrister, Solicitor, Supreme Court and Parliamentary Agent. Commissioner for Nova Scotia. Ml ,'ii/i litilii i'liiunliiis, .... Ci/;-. {Jiii.iu inn/ Mil'.iihi Sla. OTTA If.l, OAT. ('..l)!o .\iklrt'8«, " Wili'ai.'' fy IX. CANADIAN LEGAL CARDS Continu cd. BARRISTER. SOLICITOR '""/'NC./, <•„„,<,/,, .irli.-iiiii lit ar>. Sii|iiviii,. ( ',„ '•' •'•I.I l».|.arriii..tit,-,I .\-,.„t. T(I(.|,||,„|,, X,, j |.j J\|<'-vri{i\ A Aiiij,.\|., *•'''''■ ■^''■'"■-, ••I,annll Barristers, Solicitors, Notaries. Etc <>lli.-<:< l:> l,.,l,.v |l,„l,|i„^., "il S|iarlcs ,S||v,.t. "TT.\\\.\. ,)Nr. McVKITV A (iJJAHAAf, n.r.n, m,.v, ,7"^" ''■ Miiiicun (iralimn, J!. A. Barristers. Solicitors, Notary Public, Etc. Omr..s: Uooii.snaii.nj Trust huil.Ii,,,, OTTAUV r , . '_ ^ ' -^^^ *• itiUi.ii 1110 .Vo. can Barrister, Solicitor, Notary, Etc. ^^niuvni.. Court. ■ •'1-r.„H.,itaI ai„i l.arl,.,„M,ta,y .\;...nt. ".''"■'•- /.V J-:i,i,nStr,,t. nil- , IV I c,,, i ^yiLLIAM MOTT, Barrister, Solicitor, Etc. S,(f,n,H( (,.(nlau,! Ii. ,.„,i,n. nl,iil<. "jyr .1. o'coxNon, BARRISTER. ETC. Si'/inhir t'niir/ ii:iil nr/mr/iih ii/iil A;lriit. ( )|HlH'.-i — ( )t|t;ll'in ( 'limillpiTs, OTTAWA, (.anaila. rvTiAHA, WVLl) A- OSLl'.H, BARRISTERS, ETC W.M. Wvi.n. {',\A N Osl.Kli oi r \\v \ %V. C. 1'i:m(Kcr.s- ';; S/i,irl.s Slmt, OTTA ll'.l, ('AXAPA. Calilr AiMrfs-*. " i'cr.si'f, Ottawa." F OCOTT, SrOTT (^- (TPvLE, '^ Barristers, Solicitors, Supreme Court Agents, Etc. (■ii,l,tui( Chiiiiil,- ,-. - OTTA W'A. K. \V. .Sn.tt. <,>,('., LL 1). • l>'.\iv.v Si'oit. W. II. Curl.'. M..V. Deimrtinoiital Aseiitaud rui'liiiiiientiiry Solicitor. TJ W. StlAiS'.NON, Barrister, Solicitor. Si'jirctin' i'iiurt niiil I'lt rl'm im ulii r}l Aii'dl. 'J'2 Central Clmiiil)ers, El^in St. Telephone iill. OTTAWA, Out. R^ SIXCJ.AJh', TEUaMK.NK.n. Barrister, Solicitor, Notary Public, Etc. ;';' Cenlial Clunnhirt!, .... Kljiin Street, OTTAWA, OXT. M. CANADIAN LEGAL CARDS Continued. .Iiilili Sutli. il;ui.|. .1. Carliiiu K.'lli or'mi:i:i..\Ni) a KI:IJ.^^ k^ Company Promoters and Financial Agents. ('ul>l. Addii— ".lollNSlTII." j I'li'dfuril Mild McNeil. /'iir/i' ii/'ir- lit/, iili,,ii ijirinln fiii/ii\fii'iiU /, , ' NN'otiiii I 'iiiiiii, 1 • iMiiLrli - .Miiii'iii'^- and Nfil. O'n'AWA. Cjiia.la. 'I'll. .11. ■ Kw:.. PERTH. H MA. \' H.\LL, llai'rl*i'!^, Noli<-iloi-*<, i:ir. Si.lii:ihii',s f,.r till' r.anU uf M.mln al. i'i:i;Tif, Out. . A. 11 si.r. .1. M. II Ml, r..A. REGINA H AMIL'J'ON cV .I()NI-:S, Barristers, Advocates, Solicitors, Etc \V. (• 11 \MII, liiN.1,1 C. 1 ii|;|. .hiM.>, II. A /.'A"'.7AM, .\.-W/( •)(■..-/ Tirri>nri<.i. Siilii jinr> till Till' r.aiiK of Muiiiii'iii : 'I'hf Ciiiiinlii rcniiiini'iii ami Wisii-iii (■iiiiiula Mnil- piKi' t'uiiii.aii.v: 'I'lii riiiviiii'ial lliiililini,'aiiii l.uaii .\ssciiiiil imi ; 'I'lii' ( Ircal \V■|■^I l.ilV A.^sMiaiii'f CoiMpaii) ; I'lii' IliiKlirck luM'Hiini'Ml, Si'ciiii'y ami Savinv's ('()iii|'''>m\ . Tin' .SjikmI nf ilif l)i M c.t <,iii A PI" \\r : Ml .-] i I!. I ;, Dunn ,x ('n., i ir . .•ii-,. vu\ ST. JOHN. N. B. WKLDON c^ MrLi-:AN, . r:,;:;;:n * ' Barristers and Attorneys. ,Nr)/j(/ ./nllil. A'' !'■ /Irilii.-irir/,-. Solifiiors in New I'nuisHick fiii'Tlic liaiiK nf MonUi'al, Canailian I'acalir liailway Coinpany, Jliitninliiii lv\|iii-s,s Co., I'lillnian s I 'a Ian ■ Cai' dry., Ale.van'.' r (iilisnn ,^ Son.- 1 i.inilliill, (Inaiilian .\-.~uianr.- Co., 'I'lir Slniii- l.ino llaihv.'iv Co., N.w l:run.-.Mii'k Hallway Coy., Cnion In-uiaiico Co. ot liaii.iior iMaini.l. Cah'ionian 1 n.-iniam-.' C.i. ..I I'.cliniiUinh, \Vi'>iirn 1 niiai 'rilij;ra|ili Coy., Sainl .lolin Kaihvay Company (rc>nr.oliilal ion of Si rci't Itaihvay ami , " Wiiiklir, " \'iini(ni\ i r. WILSON cV SKNKLKn, Ifiiii-i'iKtors niid Molif-itoi-^, liiii.~ lit' (.'nin-t I'.'iildino', ruriicr uf I la^tinu'- and 1 lainiltmi St,M., I'AM'orih/!. I i.e. harli- Wil-iii, (,>.C. ,1. II. Sonkl.T. Kd^Mi- I'.li.nnitiMd. n'''. Ml. COUNSEL IN THE UNITEO STATES WHO HAVE HAO PfiACTICAL OEPARIMENIAL EXPERIENCE IN PROCURING LETTERS PATENT, LICENSES, ETC, IN CANADA, Coliiiiilnis, Ohio. Xinold, 'Morioii iv Irvii)'". Dcti'oit, MicliiK'nii I'owi ii, Dmi^la^iV \' li';,;^ Hiiitford, Connecticut I'-iaiilv 15. William.-. Kniisas City, Missouri Kai'iicH, New iS.- Ki aurlint'l' Nc-w Yoi'k, New York Dill, HoiutMsicr tVj HaI,«viTi Fhiladcliihia, Pa I'-raiicis Tracy 'rdliiii. PoukI) kecpsie. N.Y M:ut in 1 1 "iTiuaiicc. San Fraiicisi-o, California ll.iriiMin liill. Spokane. Was)»in«;ton XriiKuii' it Sh:ii \ St. Louis, Tlis.sonri .Milot & l''(t\vari!s. West Snpcrior, Wisconsin \ ii jiiliald McKay. Worcester, Massachusetts Kicc. \\\uv, K- Kinv COLUMBUS. O. II !1. .\I;MM,|i I: C. McIIToN |- r ii;\|NI' 1! w M.CdV C K ri LIS i KXOIJ), MOIITON A- ii:\ INI-: jr\. Attorneys and Counsellors-at-Law. .;n;-.liiS S/,iilir timhlniii, •>' Hut^l Jlnnid Stn>/. liilJ'MlU.'. (ihrn. I'i:iitiii in .Suite unci t'cilrral Cmnls S|ii'i-i:il iilli'iilinii t'lM ii In ('. .1 1 ..r.iin'ii un.l ( 'utiMncrciiil Law iimi l.ili^'ation. ;niit In ('olti-ct'niis. Ml :ir( r.i- - l-'ii. : rin M.'iiMM'.u lliiiiMiioi'il ''■ iin rin\ . 1111. 1 K C. Sir, .M ,\ s.i'v. w li,ii...i;ii,. c ; r,.i-,.r. 1 1 1- Nnihi'iir .V liiiL' r Ctuiipiui^ . ini.l till .l('ITii'\ Mtnmf Mtni hil; I'l i!in-tn' . Mtu'iif; r-'-ii r- ; 'Hit' Nt ^\- I i':-! m^- c- nl Cpt im'iv ai'il 'I'l !• Siiii'iiiv Cm U '\::\] c, Mii'-mv , \\ I1..I1 >;ili- 1 1 ,!ii.i r« iinl Slii|i|,t 1- - f C. ul . Tin I'uliini- till.-. SI It. t'.ii!ipall\ . Uliil aii\ I'lUliU aiitl \\ lutii^alc 1 Imwr in i .iluniliu-. DETROIT, MICH. 1 IllU'.IKI' lioWKN. l''l:l hI'.KIc K \'v'. Willi l\H. Soirii, T. 1 >()riii..\s. .\i.i,isii\ L. Hii.ikuck. f >()\v1':n. i)()i'(iL.\s A wiirnxc; 1> .4ttoi-ii<'y*> and €'oiiii<>>('llor*>. (•(i.MMKKl lAI. AMI tdK'I'oi; aTIo.N 1..\W AM» col, I, i;< -IK )NS. Micimiiii s' r.iiiik. lvKi'Kiii:N('i:s : I'ilV .^;i\ illL's r,il||l<. .Mrlcll.lllts' ll.nik 'i '';|||.'l .1. m ■ Mil. UNITED ST.TE« LBO.. „,„, ^ PHILADELPHIA. PA. ~ pRANC/STRAcTrOBIN Attorney and Counsel] or at La w. ^'^'"i,s,ilr,n,;a^ ( 'n i icfl S/a irs. ^"I'pnratio), Matters. ( <„ ^^-•■tHM.. a,n1 K.;,l K,t,t,. f,ti.,,i '"""'•■<-i.-il, Pr,, !,,,((. n-y^^LOn. — i'](j||j( V '■■•".■I ..ni.. r..:,...isi,.i,.. '"" Ri 'iu«'l|)liia, I'ciiii.. C.s. \1V. UNITED STATES LEGAL CARDS- Continued I HARTFORD, CONN. NoT.Mtvi'rni.io. I.lKliKirs toIiK I SKI). I.ONU liISTANCETKLEl'IIOSK i ?H\^K 13. WILLIAMS Attorney and Connsellor-at-Z/;,., iim;ti-'>i;i>. < ..„„. KiiniiiTly ussdc'iiiii'il with llii' liili- l'',lislui Ciiriicntrr. .Tiiilj,'i- of Suiiri'iiif I'Mii i '■! Ilnois iiiiil Sliiti' Kctcirr mill SuiTi'Ssiir of CaipriiH'i' .v \\ iUi;Mii>. (;i:Nr,i:\i. riiAcrici;. SI'Kcim. Attkntkin in (diirdiiA iinN ami In>i i:\mi; \.\\\ I'ol.l.Kl llos DKI'AliTMKNT (I'MI. S;lf,'c, .Mk'I'.I ('(iiiiiii . IMilnr AiiiiT .'iirp. l.iKiil Maim;il. Ilailfcml INi.risiiiliklivr .Moriaiuiir Ailju-I- f . Cloaiinj,' llniis.' (.Miavu rh. lliilphi'lls : Canada Law l.isi. Kir. IJct.rs lo Cliaih'i- Oak Nalintial liank, llarltovl, Uui.l.ii- \V..rk; ('.. i Marl f.".]' I'i''- y • Co, Ciii.ial I'.liriric Cu., Jlaiilwari' ami Crockriy Mnai.lsi.t 'I'laclr, N.w Vi.ik KANSAS CITY, MO. J. V. ('. IvAliNKS. AlHXVNUKK Nkw. ]'2|i\MN a. ]\l;\ri Ho! i-, 7 AJJNLS, NEW A KKAUTHOFF K S|ii'cial atti'iitinii tn inatti-rs .if ;i ciniimiTe-ial iiatui,' ami linn'cfiliu^,'^ ill Itaiiknipti'v. SAN FRANCISCO, CAL. H AUMON BELL .4ltoi-ii«>y :iii4l C:oiiiiHeilor-:it-Lsi\v. SAX FlLiXCISCO, California. CORPOIIATIOX \A\\. \ ;; I M TvKFl'.ltEN'CH.S- I". M. SMI'I'II. l'ivsi .v co.s hank. !■'. <;. IIAN'KNS, (irtirial .Maliairrr'l'li,. li.alty Syii.lirjt.'. K. A. M1'",H()N, I'lf.siili lit Oaklamrriaii-it ('imipaiiv. .1. n. WAiiDH, l*'.-t|-> Autluu'iit" iliis Manual, Tornnt's -inncr lor nntarj'i .mil 11. i'. r \ I i;ii K ( '. .-ill INK, N.itiuy I'ul'li.-. Atlonity.-; for Oii".'on ItailiiuicI ami Xiiviyalioii Cci. al .■<|iiikarif. I'rai'lici' ill all ('(unls, \Vasliiii;;tnii, ( (rcpni ami Malm. Spfcial faiilitic.< for ri'ports ii|ii>i) iiiinii\t; i-oiu|ia nil's or iiro|iiriii'- in I'liili'il Slali'siir r.ril'.sli Colnnilaa Connnrnial. Minini.', Coriioratioii. Iiisuiami ami I'mLati' l,a«, Itftcrcni'-s 'I'raili is NaiiMnal Hank. S|i..kam'; I'.aMvii k, .V.vlisvv.iiili \ Wri-lu, ■I'monio, Cal.l.' A.lrhcss, ■' .\iv,i, .S|.,,kani'. ST. LOUIS, MO. A ]5B()TT cV- I":i)AVAin)S Attorneys and Counsellors at Law. r/,, ,„,/„, , /r,, ,„„,,,., . /; • ■,< / :'f^/ .'^ - sT. I.uris, A. \'. .\l!l'.iii r, .lollN I'>. l'",h\\ Alius, .lulIN K. l.iil;l>, .li; II l'M!V .1. !■' \1II.K. Sin-rial Mttiiitidii tu tlir Ini^iiirss I if IK ill-l'i'>iill lit rll'illt ^. T.iilll,' 1 )ist:lllri' T'li'l'll'illi ill olii,-,.. WEST SUPERIOR, WIS. Attorney at Law. wr.yr srrEninn^ w:.,-^., ,.■<;„. .Miliilirr I'f ('aiiailinn liar. i'l'i'iiipt at'iniinii o:i\iii tu If; I liilutli ur West Sniii-rii ir. ral liusim -~ 111 WORCESTER, MASS. 1 ^TCE. KTXCr ,V 1U(1<: Counsellors at Law. l:i /'.ni'l >■/,■,■,/, - - ■ II nA'r7;.^"/7'.7.', M.i'.-rrlni-dh. EVERYTHING IN THE STATIONERY LINE. ffieRTON, PHII2I2IPS 5i G9. S l.\ I li'M ;<■-, I'll \NK I'll ink M.\klKs \N|) I'lslNllk- 1755 and 1757 Notre Dame St, MONTREAL. Sill' l'.it.iiic<"s III I'liuiiir. lit \iiirlv.r fui- The H. C. Miller Removable Leaf Perpetual Ledger. r.,iiiU-. Itailw.iy .unl .Iniui .simk ( 'n. .> .•^tati.'invN- ■air ~iM'ciMlt\' . Wl. 1*01>E:WI01C J. TAI^ICIC. A M Am. lir.iii Iii-m:i,;. VA CONSULTING ELECTRICAL ENGINEER. lnvesti;;alions anil Kcunris Im Kinriiicial l^•^titlllion^ 'tn |ir.)|i.iM'il m- l•xi^linl; Elect rit' nailro.ulN. I.isjlitlnsr and l»o\vor Knter- l>rlNeN, IjOii;; DiHtance ri'aiisiiiissioiiN. ^"'" vafuMint'""' lOS-'lO Tempi! BE, TaBONTO, GUN, 'ZieXir THE ONTARfo^ BANK. 4ii|>iliil ■*aiil-ii|i lt<-l ■'ritltl antl l.it** tccoiiiit SI.OIMI.IIOII tlO -.Mio.noo IM) n.tis: •.»: HEAD OFFICE. TORONTO. Diumld .Miu'kiiy.Ksi]., Vii'v-I'roxiilfnt . \.s living. I'.sii. 1{. I). I'ciry. Ks(|. li.m. .). C. .Vikiiis. 1), rilyot, 1;kij Cmaui.ks M>-lrii.i., , Vi I'otorbofo', I'ort Utluii. .•^lUllllllV, T\v \. <■ anil Iticlliniiinl Sl.-i. AiiKyTS — I. "ii'l"ii, /•.'».';. — Pavr's Hank. liiniiteil. Fi-iiiifi- aiiil Kura/ie --VveiMi l.yonnaise. .Y-/'' )'iirA- -Fourtli National Hank ami 'I'lie Af^i-nts Hank of Montreal. Biixtnn -VAiot National Hank. THE GREAT-WEST LIFE mURANCE COMPANY, HEAD OFFICH, WINNMPHG. Authorized Capital Subscribed Capital Paid up Capital Total Assets, 31st Dec, 1899 Insurance in force $ 1,000,000 00 400 000 00 100,000 00 723,189 13 10,260.994 00 f Liberal .inanizemeiits made with reliable men in all parts ot Canada able to intUieiu'e good business in their lo^'alitv. A. MAODONALD, President, EOBT. YOUNG, Supt of Agencies. J. H, BROCK. Man. Director, •J As. M,l,EN.\i;ill''.N, 1« Ti iron to .St., 'I'orcnto Maiiat^.r for Ontario. .1 \>. I.V.sriCU, .Mooliauic* Institute Hliln., Montreal. MainiHor for Quebec. \. .1. B\l.sro\, I'riiu'e Williaio St., St. .Iilin, N.H,, Manai^er tor M iritinie J'lovinces. X\1I. NY WALTER SUCKLING & COMPA ' '•"'''^<' "^-er 500 tenants. SHI n ... ■ , 369 Mafn Street, — " ■ " WINNIPEG 'MG AND £ng/nee:r WALPOLE ROLAND -- /''■■/■"/rrs .tx,j .vr/.T/T ■ .. Consultinrj Engineer. RAT PORTAGE, ONT. Inspector L. Dept. Can P„c. Ry Cable Address, ••Ro]a nd." McNeil's Code. X III, Sftafeftolders' anil Dirrete' Manual V .T. 1), n Ai« 1>I2 '^Pf^HOVhD BY THE nvT^n, /Hfc 0\TARI0 (JOVERNMENT Si^th Edition, ^~ „ ^'"^ post-paid on receipt of Pnce. OA^ABA HAlLWAr NEWS CO.. U..,,. ■JORO.XTO ^°- 'o-^ I'n.on Nation Btu'Idin, "iM, 6*%. ,1 XVlll. Read the Economist THE LEADING mpm^MlE, FiplflplClflL and BAWl^lN^ JOUI(NAL IN CANADA SUBSCRIPTION, $2.00 PER YEAR. WM. SANDERSON, MANAGER. 7o V it tor in «t. - - - TOl^OIVI'O I*!' B. CAIRNS X PROP. TINGLEY & STEWART MFG. Co. Leaders in up-to-Jate ^, Stamps "IRulibcr Stc nn Seals, Stencils, Checks, Bank and Office Stamps of every kind. 10 King Street West, TORONTO FIRST AND SECOND FLATS. <-s4»s;'yi t XIX. JNO. R. BARBER, PRESIDENT. UNO. F. ELLIS. TREASURe ft THE BARBER cSc ELL/S Co. LIMITED. Envelope Makers and ' Paper Dealers - - All Grades and Sizes of Envelopes in Stock and Made to Order £l'c. •^'^ -i!(t» •*!«• -iW ^if TYPEWRITER PAPERS and LINEN PAPERS - - ' In Great Variety. CORRESPONDENCE SOLICITEI) 43-47 BAY ST. — TORONTO. xx. mil Hffii '■it; i^ij^Jz^g' Ju)/' co/isidcrfftioii of Bdiiks, Loan Coinjxiii- les (in (I 7f//'o'r Business Houses .... mcf EVERY OFFICE THAT WOULD KEEP ABREAST OF THE TIMES SHOULD CONTAIN FACILITIES I — For systematizing and regiilating work. - — Host means for saving time and labor. o— Most satisfactory methods for tiling away special correspondence and other documents for innnediare production. 4 — J3est plans for protection and saving of all boolvs and papers. ^"5 — Up-to-date furnishings and fittings. Devices and Contrivances of Office Specialty Mfg. Co. meet these requirements. (Si;i: NKXT PAGK) -¥^4 m »4- The Office Specialty Mfg. Co., Limited Head Office: TORONTO. Factories: NEWMARKET, Out Branch Office : MONTREAL. Wl. "/■ Universal Card Index File For Signatures, f^^ifings, Names, Htc. #****% We Maiuifacture . lid pi, 1 iinlh'r luUrr {'opicr. Hind ill,) ('a.s,'.s ,!ii(] Dcrirrs u l><»riiii,cnf Ci/juir/.s ,ui,/ /''/A'.v. C'fn/ /ii,I,:r Si/sfru/ ,n/,i Siij>pl ics, ScJi/i,-/ir.s L,',hfrr lii,ier V-A'.v/..v, J)irecf„rs^ T„l>l,'s^ Clmi rs/ Tii'ne- ""^'''' ^''■''^■■' '^'"^ ^to,'ls^ all in .fuel or niialc to iinlcr. 1U>TAUY J!.„d'<;,,,,, SCHOOL DKHKS^LIna A.,tn„„„i,.. Ihinh\ S/nrr, r-^ , ^^^^ Je,r,dln-!i '»ut Ln,l,r V ITTlNGS '' ^^ ^^ Sifrrniltji, METALLIC I:.',"", ' "*•■ '•■'"/...,.. /-..„ „, The Office Specially Mfg. Co., Limifed. Head OfTTce -TOROMTn c~ ^ TORONTO. Factories NEWMARKET. Ont Branch Office MONTREAL. ii 1 ■' ■ xxn. NOTHING LIKE IT EIGHTH EDITION. The Statutory Law of Business Corporations. The 1900 Volume— American Corporation Legal Manual CORPORATION LAWS.— A Compilation of the Essential Features of the Statutory l-a\v le^'-iilatin^ tlie Formation, Manaj.;einent and Dissuliition of (ieiicral lUisiness and Insniance Corporations. Contains a Caiefiii .Synojisis of .St.itiitoiy l.aws of Each .Slate and I'eiiitory in the L'nitetl States anil also a more con- densed Synopsis of the Laws of Each Country in North, Central and South America, and of each of the Important luiropean Countries. {6SS l>a,t;cs (hnoted to this matter.) STREET RAILWAY LAW. -Condensed Statutory jiiovisions for each Slate and '{"cirilory of tiic United .States, togetiier with valuable dii^cst of Casc> decided. l>y the Editor. BUILDING AND LOAN ASSOCIATIONS.— 15y WILLIAM 1'. MARIIN. LL. 15., (of Melville, Martin Cv Ste|)hens, 120 liroaduiy, New York City) givint; an invaluable .Syn- opsis of the Statutory Laws of the United States relating to liuildin.L,' and Loan .Associations. TRADEMARK LAWS. — Condensed statutory pro- visions for each State and Territorv of the Uniteil .States. llv HENRY MEL\'ILLE, A. ^L, LL. 15., and WILLLAM 1'. MAli- TEN, LL 15., of New York City. PATEN r OFFICE PRACTICE WITH FORMS. — .Sh()win.i; cl(;arl\' e\ery step of proceilure ; beginning with the pre- paration of s|)ecitication, a|)plication, ilrawings, amt'iidments, rejec- tions, api)eals. re-issue, issue, etc., — about forty ilitierent topics, including minor detads connected with the practice before the office, by I'kOF. WALTER F. ROC.ERS, recently of the I'atent Depart- ment, Washington. Nothing in I'atent Practice like it. Cites several hundred cases, (iives forms. CORPORATION FORMS.— Forms of Corporate Rec- ord Look. .Siibscii|)tions for .Stock, l-'.lection of Directors, By-laws, Share Certificates, .Minutes of .Meeting of Stockliolders and Directors etc. (Contains about 200 forms and about 200 pages.) Edited by CHARLES L BORGMEYER, Esq., Newark, N. J. ,l.v.\// idfh .s7(('t', 'J'erritorii, ('^^, tit Axxticiutf t'luitjiilfr. Large Royal 8vo. Sheep, 1234 pages. Price $5.36 delivered. Address, THE CORPORflTION LEGAL MMl COMPANY, Publishers, PLAINFIELD, NEW JERSEY U.S.A. ^1 3k ^', iu- ^ - XXIII. Tht "Brown Bros. i:.sl;il)li-'|]r,| I8:,ii 51-53 Wellington St. West, Toronto STATIONERS, BOOKBINDERS. I.I.MITHD. MANl TAt 1 iK'Ki^^ ACCOUNT BOOKS fW Hanks, Merdiani., Mnniifa, ,„,rrs, Loan, Insurance and J.,i„, M.^ck roniiunifs. =:Office Supplies a Specialty Am.;x-,s I.V.K c,,li„„„,|, Tvi.cvn.c, |.:,|is„„ M,„,c,..,,„,l, F„c,- ".■""k Tens, A„,„l.r. ,„k, W„, F,„„„,,,„ >.,„:; Z GRAND & TOY, Limited STATIONERS, PBINTEBS, BLANK BOOK MNFfiS. 'i'HK Lah(;i;st MwriA LiciTEk L'oi'wsr, I! ('I'l'kKKS OK (>"Ks i\ Canada. STOCK SVBHCinPTlON BOOKS STOCK LKDOEIIS, STOCK CKirTIFlCATKS, STOCK TKANSKK/^S. AM. AIL HOOKS AM, ImRM, KKul.RKIUX TH|. lOKMATlOXOI. .Ir.lNTSTocKco.MPAMis, m ., , MIMN,; AM. CO.M.MKIUIAL tOhKs Ol EVLkV DliSCkU'llON ALWAYS ON HAND. Cor. Wellington & Jordan Sts., TORONTO. IMAGE EVALUATION TEST TARGET (MT-3) A .// 1.0 I.I IIIM 12,5 IIIM IIP m 12.0 1.8 1-25 1.4 1.6 ■« 6" ► "/a 5, .-ijilO. BILLS OF EXCHANGE, PROMISSORY NOTES. CHEQUES, ETC., J^aw of. By .1. J. Maclaren, LL.D., (^).C., 2iul edititjn, Toronto, iSfXJ, $5.50. BANKS AND BANKING. A new .'(iition in preparation. By ,). .1. Maclaren, LL.D , (,).C. THOMPSON'S COMMENTARIES ON PRIVATE CORPORATIONS, 7 larn-e vols., U.S. l8i)5-lS!)!). 1:^42.00. For further Books on Company or other Law Address: The CAR8WELL Co., Umlted T0I?.01TT0. XXV. STONE'S DYE . . WORKS inM Leading Dyers ani) Cleaners,' CUSTOMERS STONE'S DYE . . J_ ALWAYS WELL PLEASED, ' WORKS MOST COMPLETE OyEING ESTJIBLISHMEIIT IN Um OKKICKRS LXIKOlniS, ATTENOANTS- UWMy, C1,KA\KI), I,VE1., REI'AIKEI), AND KEI'T IN" l)Kr)Ek (1\ VKAKLV CONTRACT. tta- l»B\V<>«Kl. TELEPHONE 1291. f23 King Street East, TORONTO The 0. PIKE Co., Limited Manufaoturers Tents, Awnings, Flags and Sails Ho^-se Waggon aiul Lorrie Carers, Tarpnnlins Oddoths, Ih.hber Boofs, Shrinm, ar„l ' Dinniage Bags, in fact ang and erer,/- thing in Canra^: Lawn Ham-' mods, Life Preservers, Ltc. ALSO DEALERS ,N SHIPS' HARDWARE, FISHING TACKLE AND SPORTING GOODS. XXVI. "" JAMES MORRISON BRASS MFG. CO., Limited HIGH GRADE BRASS MrFOirkuMBEKS AND ENGINEERS ! steam Specialties. Brass Railings Electric and Gas Fixtures 89-07 ADELAIDE ST. WEST. THE CANADIAN BANK OF COMMERCE. Head Office-TORONTO Paid-up Capit.il Kest, S6,000,000 1,250,000 DIRECTOUS. Hon. (Jko. A. C(ix, President. Rout. Kii.golh, E.si^., Vice-President. Jas. Cratlicm, E8(i. \V. U. H.iiniltou, E8<|. Matthew Lcggut, Ksq. John llogkin, Ksq., C^.l'., LL.]). .1. \V. Klavellr, Ksq. A. Kingman, Ksq. W. E. H. Masacy, >;b(i. n. i;. WAI.KKK, (iiri. Maimn.r. .1. H. ITl'\vood Typewriters have been sold in Canada^ in the past twelve months tlian all other makes put tot^ether. Wliy f Because the writing is always in sight and it has proved the most durable. SOLE CANADIAN AGENTS: / CREELMAN BROS. TYPEWRITER CO. IS Adelaide St East, TOSOHIO. I. i If IH