56
In forceRestriction of promoters from binding themselves to pay interest on additional capital and rent or dividends to another company
Part 2General provisions
Division 8Accounts, deposits, dividends, borrowing etc
56 Restriction of promoters from binding themselves to pay interest on additional capital and rent or dividends to another company
Where the promoters are a corporation having a capital divided into shares, and have obtained an Act of Parliament authorising them to construct a tramway, it shall not be lawful for them, except for the purpose of constructing such line, to bind themselves to pay interest on any shares which they may issue for the purpose of creating additional capital, or to guarantee any rent or dividend to any other railway or tramway company until the promoters shall have completed and opened for traffic the line which they are so authorised to construct.
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