act 012 of 1918 : Companies Restriction Act, 1918 [Repealed]

Companies Restriction Act, 1918 [Repealed]

ACTNO. 12 OF 1918

03 October, 1919

[Repealed by Act 24 of 1919]

An Act to control the withdrawal of capital from the money-market by Companies

(Received the assent of the Governor-General on the 22nd March, 1918)

Whereas it is expedient owing to the present war to take power to control the withdrawal of capital from the money-market by companies; It is hereby enacted as follows:

Section 1. Short title and duration

This Act may be called the Indian Companies Restriction Act, 1918.

(2) It shall remain in force during the continuance of the present war, and for a period of six months thereafter.

Section 2. Definitions

All words and expressions used in this Act and defined in the Indian Companies Act, 1913, shall be deemed to have the meanings respectively attributed to them by that Act.

Section 3. Prohibition of the registration of or increase of share capital by, companies except under license

(1) Notwithstanding anything in the Indian Companies Act, 1913, the Registrar shall not register a company, nor shall a company increase its share capital, issue debentures, or call up unpaid capital unless the company holds a license in this behalf issued by the Governor-General in Council:

Provided that nothing in this sub-section shall apply to a private company.

(2) A license issued under sub-section (1) shall be subject to such conditions as the Governor-General in Council may think fit, and the holder of such license shall comply with any such conditions.

Section 4. Contracts made for the purpose of increasing share capital in contravention of Section 3, to be void, and calls to be unenforceable

Any contract made by or on behalf of a company with the object or the effect of increasing its share capital, or for the issue of debentures, which is in contravention of the provisions of Section 3, shall be void, and any call made by a company in contravention of the said provisions shall be unenforceable.