(1) This section applies where shares in a limited company -

(a) are taken by a subscriber to the memorandum as nominee of the company,

(b) are issued to a nominee of the company, or

(c) are acquired by a nominee of the company, partly paid up, from a third person.

(2) If the nominee, having been called on to pay any amount for the purposes of paying up, or paying any premium on, the shares, fails to pay that amount within 21 days from being called on to do so, then -

(a) in the case of shares that he agreed to take as subscriber to the memorandum, the other subscribers to the memorandum, and

(b) in any other case, the directors of the company when the shares were issued to or acquired by him,

are jointly and severally liable with him to pay that amount.

(3) If in proceedings for the recovery of an amount under subsection (2) it appears to the court that the subscriber or director -

(a) has acted honestly and reasonably, and