730. Penalty For Attempted Evasion Of Restrictions

(1) This section applies where shares are subject to restrictions by virtue of an order under section 726.
(2) A person contravenes these Regulations if he-
(a) exercises or purports to exercise any right-
(i) to dispose of shares that to his knowledge, are for the time being subject to restrictions, or
(ii) to dispose of any right to be issued with any such shares, or
(b) votes in respect of any such shares (whether as holder or proxy), or appoints a proxy to vote in respect of them, or
(c) being the holder of any such shares, fails to notify of their being subject to those restrictions a person whom he does not know to be aware of that fact but does know to be entitled (apart from the restrictions) to vote in respect of those shares whether as holder or as proxy, or being the holder of any such shares, or being entitled to a right to be issued with other shares in right of them, or to receive any payment on them (otherwise than in a liquidation), enters into an agreement which is void under section 729(2) or (3).
(3) If shares in a company are issued in contravention of these Regulations, a contravention of these Regulations is committed by-
(a) the company, and
(b) every officer of the company who is in default.
(4) A person who contravenes these Regulations under this section is liable to a level 2 fine.
(5) The provisions of this section are subject-
(a) to any directions under-
section 726(2) (directions for protection of third parties), or
section 731 or 732 (relaxation or removal of restrictions), and
(b) in the case of an interim order under section 726(3), to the terms of the order.