apply such sum on their behalf


Senior Member

The Company may upon the recommendation of the Directors by ordinary resolution authorise the Directors to capitalise any sum standing to the credit of any of the Company’s reserve accounts (including share premium account and capital redemption reserve fund) or any sum standing to the credit of profit and loss account or otherwise available for distribution and to appropriate such sum to Members in the proportions in which such sum would have been divisible amongst them had the same been a distribution of profits by way of dividend and to apply such sum on their behalf in paying up in full unissued shares for allotment and distribution credited as fully paid up to and amongst them in the proportion aforesaid.

This is an Article listed in the Statute of a particular company. Can somebody help me please to understand the meaning of " apply such sum on their behalf " here please?

  • JamesM

    Senior Member
    The Company (upon recommendation of the Directors) may apply any of the sums mentioned beforehand on behalf of the Members in paying the Members in full unissued shares.

    That's how I read it.
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