Payment of commissions regulated: authorisation, capped rates and mandatory prospectus disclosure required for lawful commissions. Payment of commission for subscribing or procuring subscriptions is permitted only if authorised by the articles, within the statutory rate limits or any lower rate in the articles, and if the commission rate and number of shares or debentures are disclosed in the prospectus or statement in lieu; a contract for the commission must be filed with the Registrar where required. All other commissions, discounts or allowances in consideration of subscriptions are prohibited, subject to a brokerage exception and a vendor/promoter power to apply received consideration to lawful commission payments, with penalties for default.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Payment of commissions regulated: authorisation, capped rates and mandatory prospectus disclosure required for lawful commissions.
Payment of commission for subscribing or procuring subscriptions is permitted only if authorised by the articles, within the statutory rate limits or any lower rate in the articles, and if the commission rate and number of shares or debentures are disclosed in the prospectus or statement in lieu; a contract for the commission must be filed with the Registrar where required. All other commissions, discounts or allowances in consideration of subscriptions are prohibited, subject to a brokerage exception and a vendor/promoter power to apply received consideration to lawful commission payments, with penalties for default.
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