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16. Forfeiture of shares of untraceable shareholders---(1) This section shall apply in every case where--- (a) The registered owner for the time being of shares in a company registered under this Act--- (i) Has ceased for the whole of the immediately preceding period of 5 years to be a supplying shareholder of the company; and (ii) Has left his last address known to the company and has no agent whose address is known to the company; and (iii) In any case where a dividend has been declared by the company during the said period of 5 years, has failed to claim the said dividend: (b) The registered owner for the time being of shares in a company registered under this Act has been deceased for more than 5 years and no application has been made to the company for registration of any transmission in respect of the shares and no probate or letters of administration in his estate have been produced to the company for noting. (2) In any case to which this section applies the company may publish a notice in 3 consecutive issues of a newspaper circulating in the district in which the company operates of its intention to forfeit the shares under this section at the expiration of 3 months from the date of the first publication of the notice, unless within that time the registered owner or his legal personal representative or some person claiming to be entitled to the shares establishes to the satisfaction of the directors good cause to the contrary. Every such notice shall set out the name of the registered owner, the number of shares, and the amount paid up thereon. (3) Unless within the said period of 3 months the registered owner or his legal personal representative or some other person establishes his title to the shares to the satisfaction of the directors, the directors may by resolution, at any time after the expiration of the said period of 3 months, declare the said shares to be forfeited, and, subject to the next 2 succeeding subsections, the shares shall thereupon be deemed to be forfeited to the company. (4) At any time within one year after the passing of a resolution of the directors under the last preceding subsection any person claiming to be entitled to the shares so forfeited may apply to the Co-operative Dairy Companies Tribunal for an order cancelling the forfeiture and restoring the shares to the share register of the company. Notice of the application shall be served by the applicant on the company at its registered office. (5) After considering the application the Tribunal shall make such order as it considers just and equitable in all the circumstances of the case, either dismissing the application or ordering the cancellation of the forfeiture and the restoration of the shares to the share register. (6) If no application under subsection (4) of this section is made within the said period of one year, or if every application made under that subsection in respect of those shares is dismissed by the Tribunal, the directors may, at any time after the expiration of the said period of one year or after all such applications have been dismissed by the Tribunal, whichever is the later, reissue or sell the shares on such terms as they think fit, and the company may receive the consideration given for the shares on the reissue or sale thereof, and may re-allot or execute a transfer of those shares in favour of the person to whom the shares are reissued or sold as aforesaid, and may register that person as the owner thereof. The title of any person so registered as the owner of the shares shall not be affected by any irregularity or invalidity in the proceedings in reference to the forfeiture, reissue, or sale of the shares. (7) The powers of forfeiture conferred by the foregoing provisions of this section shall be in addition to and not in substitution for any other powers which the company may have to forfeit shares.
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