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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