or authorized by him, and shall forward a copy to the Registrar for filing in his office.

members limited.

7. The liability of a member shall be limited to the amount unpaid Liability of on the shares taken or held by him.

Act."

8. The provisions of the "Co-operative Associations Act" speci- Application of Co-operative fied in Schedule B shall, so far as the same are applicable and are Associations not inconsistent with this Act, and to the extent and subject to the modifications specified in column 3 of that Schedule, apply to every company.

9. (1.) No company shall be entitled to commence business :-
:-
(a.) Unless within thirty days, or such extended time, not
exceeding three months, as the Minister may allow, from
the date of its incorporation it files with the Minister the
duplicate certificate issued by the Registrar, and proper
plans, specifications, and estimates of its proposed tele-
phone system, with the tariff of rates, tolls, and rentals
which it proposes to charge, and notifies the Registrar of
such filing; and

(b.) Unless its proposed telephone system has been approved
by the Minister, with due regard to existing telephone
facilities in the locality in which the company proposes to
operate; and

(c.) Unless the company has received in cash from its members a sum equal to at least twenty dollars for each pole-mile of its telephone system, as approved by the Minister. (2.) Where a company fails to comply with the requirements of clause (a) of subsection (1), the Registrar shall cancel the incorporation of the company, and thereupon its certificate shall become void and of no effect, and the company shall be dissolved and its property (if any) shall be distributed among the parties entitled thereto as the Minister, upon the application of any member or creditor of the company, determines.

10. (1.) No company shall change the position of its telephone poles or lines or extend its lines without first obtaining the written consent of the Minister.

(2.) For the purposes of the "Highway Act," the Minister may require a company to change the position of its telephone poles or lines, and the cost of the change shall, unless the Minister otherwise. orders, be borne by the company.

Requirements before commencing business and

effect of

default.

Changes and

extensions of poles

and lines.

11. No company shall break up or open:—

Consent to

construction

(a.) Any public highway, road, or street, not being in a munici- on highways, etc. pality, or any primary highway within the meaning of the "Highway Act," without in either case first obtaining the written consent of the Minister:

Power to expropriate land.

Power to take
Crown timber.

Power to construct and operate system.

Power to extend operations into municipalities.

Power to connect with other

telephone systems.

(b.) Any public highway, road, or street in a municipality, other
than a primary highway under clause (a), without first
obtaining the approval of the municipality.

Powers of Company.

12. (1.) For the purpose of constructing, maintaining, and oper ating its telephone system, a company may enter upon, take, use, or acquire any land or property in whomsoever vested.

(2.) The company shall, whenever required so to do, make reasonable compensation to the owners of or persons interested in the land or property for all damages sustained by them by reason of the exercise by the company of its powers under this section; and in case the amount of compensation cannot be mutually agreed upon by the company and the owners or persons interested, the same shall be determined by arbitration in the manner provided by the “ Arbitration Act."

13. A company may, with the consent of the Minister of Lands, take free of charge from any vacant Crown lands all standing timber necessary for the construction of its telephone system.

14. A company may construct, maintain, and operate its telephone system upon, along, across, above, or under any public highway, road, street, bridge, or other place, and may for that purpose break up and open any such highway, road, or street, but the company shall not interfere with the public right of travelling on or using any highway, road, street, or bridge.

15. Where a company passes an extraordinary resolution for the extension of its telephone system within the limits of a munici pality adjacent to the locality in which the company operates, the Minister may, on application by the company and after hearing any municipality affected, and any other party interested, authorize the company to extend its telephone system accordingly, subject to such terms and conditions as he thinks advisable.

16. (1.) A company may, with the approval of the Minister in writing, enter into any agreement or arrangement with any person owning or operating a telephone system for the purpose of connecting the company's telephone system with that person's telephone system.

(2.) Where any person owning or operating a telephone system refuses to enter, upon request by a company, into an agreement or arrangement under subsection (1), the Minister may order such person to provide the necessary connection or facilities therefor upon such terms and conditions as he considers fair and reasonable.

(3.) Every person refusing or failing to carry out an order made by the Minister shall be liable, on summary conviction, to a penalty

་

not exceeding twenty dollars for each day during which the refusal or failure continues.

service and

17. A company may supply telephone service to any person, in Power to supply addition to members of the company, and, subject to section 18, may charge tolls. charge rates, rentals, or tolls therefor.

by-laws.

18. (1.) The directors of a company may make by-laws for the Power to make operation and management of its telephone system, but no by-law fixing any tariff, rate, rental, or toll shall have any force or effect until it has been approved by the Minister in writing.

(2.) Every by-law shall be in such form and be posted and published in such manner as the Minister prescribes, and a copy shall be filed with him.

Miscellaneous.

serve residents

19. Where any person residing in or near the locality in which Company to a company operates its telephone system applies to the company in its locality. for telephone service, the company shall supply such service, but the company shall not be required to lay out a sum exceeding fifty dollars in establishing the service.

20. Every subsisting company which was incorporated under the "Rural Telephone Act" repealed by this Act shall be deemed to be a company incorporated under this Act, subject to the following provisions:

(a.) Its rules shall, so far as the same are not contrary to any express provision of this Act, continue in force until altered or rescinded:

(b.) The denomination of its shares may by extraordinary resolution be altered from twenty-five dollars each to five dollars each:

(c.) Subsection (2) of section 6 shall not apply except where a company increases its capital:

(d.) Section 9 shall not apply.

Application of Act

to companies former Act.

incorporated under

Minister.

21. The Minister may from time to time make regulations for Regulations by carrying out the purposes of this Act, including matters in respect whereof no express or only partial or imperfect provision has been made.

22. The "Rural Telephone Act," being chapter 44 of the Statutes Repeal. of 1912, is repealed.

SCHEDULES.

SCHEDULE A.
(Section 4.)

"RURAL TELEPHONE ACT."

MEMORANDUM OF ASSOCIATION OF THE

66

RURAL TELEPHONE COMPANY. (1.) The name of the Company is " Rural Telephone Company." (2.) The registered office of the Company will be situate at the Province of British Columbia.

in

(3.) The object for which the Company is incorporated is to construct, maintain, and operate a telephone system from to [or within the locality decsribed as follows: ], in the Province of British Columbia.

(4.) The liability of the members is limited.

We, the several persons whose names, addresses, and occupations are subscribed, desire to be formed into an incorporated Company in pursuance of this Memorandum of Association, and we respectively agree to take the number of shares in the capital of the Company set opposite our respective names. Dated this

day of

19

Names, Addresses, and Occupations
of Subscribers.

Witness to the above signatures:

Name

Address

Occupation

Number of Shares
taken.

46 Inspection of documents at Registrar's The whole section.