.
Bankers and Banking.
582 Sect.
8.
Joint Stock
Banks.
Effect of
company legislation of
1862.
Restrictions
on limitation of liability.
Annual returns.
nor were any of the banks existing prior to 1844 which had merely stood on their rights. Any of such banks, however, if consisting of more than seven members, or any new coaKtion of more than seven persons, was entitled to register as a banking company with unlimited liability (g). In 1858 banking companies, whether registered under the lastmentioned provisions or newly formed, were permitted to register with limited liability, save as to note issue, if any {h) All banks formed or registered under the above-mentioned legislation of 1857 and 1858 were made subject to the company legislation of 1862, as though registered thereunder. This legislation, with the subsequent amending enactments, governs their constitution and that of all banks of more than ten persons founded since 1862, otherwise than by royal charter or special Act of Parliament. Banks came into the new system as limited or unlimited according to their previous constitution (i), but no existing or new bank could by registering with limited liability preclude the liability of its shareholders being unlimited with regard to note issue, if any (/t). In 1879 banking companies registered as unlimited were afforded the opportunity of registering as limited, and the liability of shareholders in a limited company issuing notes was reformed by providing that in case of winding up they are liable to the note-holders and are further to pay, if required, towards the general debts of the company, a sum equal to that received by the noteholders out of the general assets (I).
1187. Banks other than those affected by the legislation of 1862 and subsequent legislation have to make yearly returns to the Commissioners of Inland Eevenue of the names and residences of the members, and of the name of the firm and the places at which business is carried on (m), but the Commissioners are not obliged
them (n). The companies within the 1862 and subsequent legislation have only to furnish to the Registrar of Joint Stock Companies the annual list and summary required of all joint stock companies, with the addition of the names of the places where business is carried on(o).
to publish
Audit of accounts.
stock banking company a limited company, must be examined at least once a year by an auditor or auditors, annually appointed by the company in general meeting. Such auditors are to have access to the books and accounts, and may examine the directors or any other officer of the company in relation
1188.
The accounts
registered
since
every joint
of
August
15, 1879, as
Joint Stock Companies Act, 1857 (20 & 21 Vict. c. 49), ss. 6, 13. Joint Stock Companies Act, 1858 (21 & 22 Vict. c. 91), s. 1. (i) Companies Act, 1862 (25 & 26 Vict. c. 89), ss. 175, 176. (k) Ibid., s. 182. It is believed, however, that certain companies, although registered as limited, have obtained special powers relieving shareholders of {g)
(h)
liability for notes. (I)
Companies Act, 1879 (42
&
43 Vict.
c.
76),
s. 6.
Act, 1844 (7 & 8 Vict. c. 32), s. 21. {n) Inland Revenue Act, 1880 (43 & 44 Vict. c. 20), s. 57. (o) Eevenue, Friendly Societies, and National Debt Act, 1882 (45
c.
(m)
Bank Charter
72),
s.
11.
&
46 Vict,
