COMPANIES ACT - 1963 (ACT 179)

    Section - 284 - Minimum Subscription

    (1) Where any public company makes a general invitation to the public to subscribe for any of its shares or debentures, the amount payable on application for such shares or debentures shall not be less than twenty per centum of the subscription price.

    Seventh Sch.

    (2) Unless, within twenty-eight days of the expiration of the waiting period, the amount stated in the prospectus as the minimum amount which, in the opinion of the directors, must be raised in order to provide for the matters specified in sub-paragraph (b) of paragraph 24 of the Seventh Schedule to this Code, hereinafter called the minimum subscription, has been subscribed and the amount payable on application for the minimum subscription has been paid to and received by the company, any agreement to subscribe for any such shares or debentures shall become void at the expiration of such twenty-eight days.

    (3) If any agreement becomes void in accordance with the last foregoing subsection, the company shall forthwith repay without interest all moneys received from any persons in response to the invitation.

    (4) If any money is not repaid in accordance with subsection (3) of this section within eight days after it becomes repayable, the directors of the company shall be jointly and severally liable to repay that money with interest at the rate of five per centum per annum from the expiration of the eighth day:

    Provided that a director shall not be liable if he proves that the default in the repayment of the money was not due to any misconduct or negligence on his part.

    (5) So long as the company may become liable to repay any money in accordance with subsection (3) of this section, all moneys received from any person in response to the invitation shall be kept in a separate bank account and shall be deemed to be held on trust to give effect to the provisions of this section; and if default is made in complying with this subsection the company and every officer of the company who is in default shall be liable to a fine not exceeding five hundred pounds.