Railways (Miscellaneous) Act, 1932

Purchase by a railway company of its own debenture stock.

17.—(1) A railway company may, notwithstanding anything contained in any Act or other instrument constituting or regulating such company, purchase in any stock exchange or by private treaty any quantity of the debenture stock or any of the debenture stocks of such company and may use for such purchase any moneys in its hands, other than moneys raised by the issue of stock or by borrowing or otherwise expressly for another purpose.

(2) A railway company purchasing debenture stock under this section may require the stock so purchased to be transferred by the seller thereof either to such company or to other persons nominated by such company.

(3) Whenever debenture stock purchased by a railway company under this section is transferred by the seller thereof to such company, such transfer shall operate to extinguish such stock.

(4) Whenever debenture stock purchased by a railway company under this section is transferred by the seller thereof to other persons nominated by such company, such persons shall hold such stock upon trust to sell the same or any part thereof when so directed by such company and to pay the proceeds of such sale to such company and until such sale to hold such stock in trust for such company.