Section 242: Power to impose restrictions on shares or debentures

242. Power to impose restrictions on shares or debentures (1) Where in connection with an investigation under section 236 or a request under section 241, it appears to the Registrar that there is difficulty in finding out the relevant facts about any shares, whether issued or to be issued, and that the difficulty is due wholly or mainly to the unwillingness of a person concerned to assist the investigation or the inquiry, the Registrar may, by public notice direct that— (a) any transfer of those shares or any exercise of the right to acquire or dispose of those shares or in the case of unissued shares any transfer of the right to be issued therewith and any issue thereof, shall be void; (b) no voting rights shall be exercisable in respect of those shares; (c) no further shares shall be issued in right of those shares or in pursuance of any offer made to the holder thereof; or (d) except in a liquidation, no payment shall be made of any sum due from the corporation on those shares whether in respect of capital or otherwise. (2) Where the Registrar directs that shares shall cease to be subject to the restrictions specified in subsection (1) and the notice is expressed to be C35 – 145 [Issue 5] Companies Act made with a view to permitting a transfer of those shares, he may direct that subsection (1) (c) and (d) shall continue to apply in relation to those shares, either in whole or in part, so far as those paragraphs relate to a right acquired or an offer made before the transfer. (3) This section shall apply in relation to debentures as it applies in relation to shares.