Section 111. Lien on shares

(1) Unless provided otherwise in the constitution, a company shall be entitled to a lien, in priority to any other claim, over—

(a) a partly paid issued share; and

(b) any dividend payment on the share,

for all money due by the shareholder to the company by way of money called or payable at a fixed date.

(2) A company may sell any share over which the company has a lien in a manner as the directors consider appropriate.

(3) The sale of any shares by a company referred to in subsection (2) shall not be made unless—

(a) a sum in respect of which the lien exists is presently payable; and

(b) until the expiry of fourteen days from a written notice, stating and demanding payment of such part of the amount in respect of which the privilege or lien exists as is presently payable has been given to the registered holder for the time of the share, or the person entitled to the share by reason of the death or bankruptcy of the registered holder.

(4) For the purposes of giving effect to any sale under subsection (2), the directors may authorize a person to transfer the shares sold to the purchaser of the shares who shall be registered as the shareholder comprised in any such transfer and the directors shall not be bound to see to the application of the purchase money.

(5) The title of the purchaser to the share sold under subsection (2) shall not be affected by any irregularity or invalidity in the proceedings relating to the sale.

(6) The proceeds of the sale shall be received by the company and applied in payment of such part of the amount in respect of which the lien exists as is presently payable, and any residue shall be paid to the person entitled to the share at the date of the sale, subject to a similar lien for sums not presently payable which exists over the shares before the sale.

(7) The directors may decline to register the transfer of a share over which the company has a lien, unless otherwise provided in the constitution.