Hide Nav Show Nav
SOLR_PROP

Companies Act, 1990

Requirements as to shares allotted by a company to which section 155 applies.

156.(1) Where a company to which section 155 applies allots a share which is not fully paid up as required by section 150 (3) (b) the share shall be treated as if its nominal value together with the whole of any premium had been received, but the allottee shall be liable to pay the company in cash the full amount which should have been received in respect of the share under that subsection less the value of any consideration actually applied in payment up (to any extent) of the share and any premium on it, and interest at the appropriate rate on the amount payable under this subsection.

(2) Where a company to which section 155 applies allots a share which is not fully paid for in cash as required by section 150 (3) (c) the allottee of the share shall be liable to pay the company in cash an amount equal to its nominal value, together with the whole of any premium, and shall be liable to pay interest at the appropriate rate on the amount payable under this subsection.

(3) Subsection (1) shall not apply in relation to the allotment of abonus share which is not fully paid up as required by section 150 (3) (b) unless the allottee knew or ought to have known that the share was so allotted.

(4) Subsection (1) does not apply to shares allotted in pursuance of an employees' share scheme within the meaning of section 2 of the Companies (Amendment) Act, 1983 .

(5) In this section, “appropriate rate” has the meaning assigned to it by section 2 of the Companies (Amendment) Act, 1983 .

(6) Section 26 (4) of the Companies (Amendment) Act, 1983 , shall apply for the purposes of this section as it applies for the purposes of that section.