VII.—Forfeiture of Shares.

21. If any Shareholder fails to pay any Call due on the appointed day the Directors may at any time thereafter during such time as the Call remains unpaid serve a notice upon him requiring him to pay such Call together with any interest that may have accrued by reason of such non-payment.

22. The notice shall name a further day and a place or places being a place or places at which Calls of the Company are usually made payable on and at which such Call is to be paid It shall also state that in the event of non-payment at the time and place appointed the Shares in respect of which such Call was made shall be liable to be forfeited.

page 11

23. If the requisitions of such notice as aforesaid are not complied with any share in respect of which such notice has been given may be forfeited by a resolution of the Directors to that effect Provided that no Share shall be forfeited unless a Call due in respect thereof shall be at least three months in arrear.

24. Any Share so forfeited shall be deemed to be the property of the Company and may be disposed of in such manner as the Directors think fit. A Certificate in writing under the hands of two of the Directors and countersigned by the Chairman that a Share has been duly forfeited in pursuance of these presents and stating the time when it was forfeited shall be conclusive evidence of the fact therein stated as against all persons who would have been entitled to the Share but for such forfeiture and such Certificate and the receipt of the Company of the price of such Share shall constitute a good title to such Share.

25. A Shareholder whose Shares have been forfeited shall notwithstanding be liable to pay to the Company all Calls and Interest thereon owing upon the said Shares at the time of the forfeiture but the Directors may if they think proper pay back to any such Shareholder such portion of the proceeds realised upon the sale of such Shares as they see proper.