Common use of Lien on Shares Clause in Contracts

Lien on Shares. (a) The Company has a first lien on: (1) each partly paid share for all unpaid calls and instalments due on that share; and (2) each share for any amounts the Company is required by law to pay and has paid in respect of that share. In each case the lien extends to reasonable interest and expenses incurred because the amount is not paid. (b) The Company’s lien on a share extends to all dividends, interest and other amounts payable on the share and to the proceeds of sale of the share. (c) The Board may sell a share on which the Company has a lien as it thinks fit where: (1) an amount for which a lien exists under this article 3.5 is presently payable; and (2) the Company has given the registered holder a written notice, at least fourteen (14) days before the date of the sale, stating and demanding payment of that amount. (d) The Board may do anything necessary or desirable to protect any lien, charge or other right to which the Company is entitled under these articles or a law. (e) When the Company registers a transfer of shares on which the Company has a lien without giving the transferee notice of its claim, the Company’s lien is released so far as it relates to amounts owing by the transferor or any predecessor in title. (f) The Board may: (1) exempt a share from all or part of this article 3.5; and (2) waive or compromise all or part of any payment due to the Company under this article 3.5.