Marginal note:Transfer of shares to person of insufficient means
201 (1) Whenever entry is made in the company’s books of any transfer of shares not fully paid-up, to a person who is not apparently of sufficient means to fully pay up such shares, the directors are jointly and severally liable to the company and its creditors in the same manner and to the same extent as the transferring shareholder except for such entry, would have been liable.
Marginal note:Exoneration
(2) Where any director, present when such entry is allowed, forthwith, or where any director, then absent, within one week after he becomes aware of such entry and is able to do so, delivers to the secretary or other officer of the company his written protest against the transfer and within eight days thereafter causes his protest to be notified by a registered letter to the Minister, such director shall thereby, and not otherwise, exonerate himself from such liability.
- R.S., 1952, c. 53, s. 189
- Date modified: