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CHAPTER 7
COMMISSIONS AND DISCOUNTS

Sub-Underwriting.-It is a common practice for underwriters to relieve themselves from some of their risk by entering into subunderwriting contracts. In such cases the sub-underwriter becomes bound to take and pay for his proportion of the shares sub-underwritten which are not allotted to the public. By the nature of the contract, the sub-underwriter authorises the underwriter to apply for such shares on his behalf, and he cannot revoke the authority so given, whether or not the sub-underwriting letter contains a formal grant of authority to the underwriter.

In re Olympic Fire and General Reinsurance Co., Ltd., [1920] 2 Ch. 341. A syndicate underwrote 150,000 out of 350,000 shares offered by a company to the public. X. sub-underwrote 10,000 of those shares on the terms of a sub-underwriting letter Only 55,000 shares were applied for by the public, and on December 12th the syndicate applied in their own name, and the name of X., for the shares they were bound to take up. On December 22nd, X. wrote withdrawing his application for shares, and on December 29th he received notice of allotment. X. applied to rectify the register by having his name removed. Held, the authority given to the syndicate was an authority coupled with an interest, and irrevocable.
" As soon as the sub-underwriting letter was handed, as the appellant must have known it would be handed, to the company, and was acted on by them in allotting to the applicant no more than the precise number of shares which, in the event he was by the terms of his underwriting letter bound to take, there was constituted an irrevocable contract as between himself and the company, from which he could not by any attempted withdrawal escape."-Per Younger, L.J.

In a sub-underwriting contract the personality of the sub-underwriter is of importance, and therefore an undisclosed principal cannot sue on such a contract made on his behalf by an agent.

Collins v. Associated Greyhound Racecourses, Ltd., [1930] 1 Ch. 1. X. underwrote shares in a company on the basis of a draft prospectus, and Y. sub-underwrote some of those shares on the same basis. Y. was agent for C., but this was not disclosed to X. or the company. The public response to the issue was insufficient, and shares were allotted to Y., who renounced in favour of C., who was entered on the register. The prospectus contained misrepresentations, and, on learning of this, C. applied for his name to be removed from the register and for repayment of his money. Held, C. was not entitled to rescission because (1) the contract between Y. and the company was of such a class that Y. must be treated as a principal and not as agent for C., and (2) the contract between the company and C. through the entry of C.'s name on the register was not entered into on the basis of the prospectus, the function of the prospectus having been fulfilled before that contract was made.

Underwriting Debentures.-The provisions of s. 53 do not apply to the underwriting of debentures or debenture stock, as there is nothing to prevent the issue of debentures at a discount. When underwriting commission is paid, however, the Act requires:
1. Particulars of the amount or rate per cent. paid to be filed with the Registrar within twenty-one days of the issue of the debentures (s. 95 (9)).

travel books:
where is HTML where is HEAD where is TITLE Sub-Underwriting.-It is a common practice for underwriters to relieve themselves from some of their risk by entering into subunderwriting contracts. In such cases what is sub-underwriter becomes bound to take and pay for his proportion of what is shares sub-underwritten which are not allotted to what is public. By what is nature of what is contract, what is sub-underwriter authorises what is underwriter to apply for such shares on his behalf, and he cannot revoke what is authority so given, whether or not what is sub-underwriting letter contains a formal grant of authority to what is underwriter. In re Olympic Fire and General Reinsurance Co., Ltd., [1920] 2 Ch. 341. A syndicate underwrote 150,000 out of 350,000 shares offered by a company to what is public. X. sub-underwrote 10,000 of those shares on what is terms of a sub-underwriting letter Only 55,000 shares were applied for by what is public, and on December 12th what is syndicate applied in their own name, and what is name of X., for what is shares they were bound to take up. On December 22nd, X. wrote withdrawing his application for shares, and on December 29th he received notice of allotment. X. applied to rectify what is register by having his name removed. Held, what is authority given to what is syndicate was an authority coupled with an interest, and irrevocable. " As soon as what is sub-underwriting letter was handed, as what is appellant must have known it would be handed, to what is company, and was acted on by them in allotting to what is applicant no more than what is precise number of shares which, in what is event he was by what is terms of his underwriting letter bound to take, there was constituted an irrevocable contract as between himself and what is company, from which he could not by any attempted withdrawal escape."-Per Younger, L.J. In a sub-underwriting contract what is personality of what is sub-underwriter is of importance, and therefore an undisclosed principal cannot sue on such a contract made on his behalf by an agent. Collins v. Associated Greyhound Racecourses, Ltd., [1930] 1 Ch. 1. X. underwrote shares in a company on what is basis of a draft prospectus, and Y. sub-underwrote some of those shares on what is same basis. Y. was agent for C., but this was not disclosed to X. or what is company. what is public response to what is issue was insufficient, and shares were allotted to Y., who renounced in favour of C., who was entered on what is register. what is prospectus contained misrepresentations, and, on learning of this, C. applied for his name to be removed from what is register and for repayment of his money. Held, C. was not entitled to rescission because (1) what is contract between Y. and what is company was of such a class that Y. must be treated as a principal and not as agent for C., and (2) what is contract between what is company and C. through what is entry of C.'s name on what is register was not entered into on what is basis of what is prospectus, what is function of what is prospectus having been fulfilled before that contract was made. Underwriting Debentures.-The provisions of s. 53 do not apply to what is underwriting of debentures or debenture stock, as there is nothing to prevent what is issue of debentures at a discount. When underwriting commission is paid, however, what is Act requires: 1. Particulars of what is amount or rate per cent. paid to be filed with what is Registrar within twenty-one days of what is issue of what is debentures (s. 95 (9)). where is meta name="keywords" content="old books, Free book , free book offer , free audio books , free coloring book pages , free book reports , free audio book , audio books free download , book free , free guest book , books free , free book summaries , download free audio books , free childrens books." where is where are they now rel="stylesheet" type="text/css" href="../../style.css" where is meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1" where is BODY bgColor=#ffffff text="#000000" where are they now ="#000000" v where are they now ="#FF0000" where is div align="center" where is strong where is strong where is a href="http://www.aaoldbooks.com" Books > where is a href="../default.asp" title="Book" Old Books > where is strong where is a href="default.asp" Poetry Northwest (1959) where is table width="700" border="1" align="center" cellpadding="15" cellspacing="0" where is center where is tr where is td width="160" align="center" valign="top" where is div align="center" where is td align="center" valign="top" where is div align="left" where is div align="center" where is p align="left" Page 59 where is strong CHAPTER 7 COMMISSIONS AND DISCOUNTS where is p align="justify" Sub-Underwriting.-It is a common practice for underwriters to relieve themselves from some of their risk by entering into subunderwriting contracts. In such cases what is sub-underwriter becomes bound to take and pay for his proportion of what is shares sub-underwritten which are not allotted to what is public. By what is nature of what is contract, what is sub-underwriter authorises what is underwriter to apply for such shares on his behalf, and he cannot revoke what is authority so given, whether or not what is sub-underwriting letter contains a formal grant of authority to what is underwriter. In re Olympic Fire and General Reinsurance Co., Ltd., [1920] 2 Ch. 341. A syndicate underwrote 150,000 out of 350,000 shares offered by a company to what is public. X. sub-underwrote 10,000 of those shares on what is terms of a sub-underwriting letter Only 55,000 shares were applied for by what is public, and on December 12th what is syndicate applied in their own name, and what is name of X., for what is shares they were bound to take up. On December 22nd, X. wrote withdrawing his application for shares, and on December 29th he received notice of allotment. X. applied to rectify what is register by having his name removed. Held, what is authority given to what is syndicate was an authority coupled with an interest, and irrevocable. " As soon as what is sub-underwriting letter was handed, as what is appellant must have known it would be handed, to what is company, and was acted on by them in allotting to what is applicant no more than what is precise number of shares which, in what is event he was by what is terms of his underwriting letter bound to take, there was constituted an irrevocable contract as between himself and what is company, from which he could not by any attempted withdrawal escape."-Per Younger, L.J. In a sub-underwriting contract what is personality of what is sub-underwriter is of importance, and therefore an undisclosed principal cannot sue on such a contract made on his behalf by an agent. Collins v. Associated Greyhound Racecourses, Ltd., [1930] 1 Ch. 1. X. underwrote shares in a company on what is basis of a draft prospectus, and Y. sub-underwrote some of those shares on what is same basis. Y. was agent for C., but this was not disclosed to X. or what is company. what is public response to what is issue was insufficient, and shares were allotted to Y., who renounced in favour of C., who was entered on what is register. what is prospectus contained misrepresentations, and, on learning of this, C. applied for his name to be removed from what is register and for repayment of his money. Held, C. was not entitled to rescission because (1) what is contract between Y. and what is company was of such a class that Y. must be treated as a principal and not as agent for C., and (2) what is contract between what is company and C. through what is entry of C.'s name on what is register was not entered into on what is basis of what is prospectus, what is function of what is prospectus having been fulfilled before that contract was made. Underwriting Debentures.-The provisions of s. 53 do not apply to what is underwriting of debentures or debenture stock, as there is nothing to prevent what is issue of debentures at a discount. When underwriting commission is paid, however, what is Act requires: 1. Particulars of what is amount or rate per cent. paid to be filed with what is Registrar within twenty-one days of what is issue of the debentures (s. 95 (9)). where is Server.Execute("_SiteMap.asp") %

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