Companies (Amendment) Act, 1983
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Prohibition on allotment of shares at a discount. |
27.—(1) Subject to subsection (4) the shares of a company shall not be allotted at a discount. | |
(2) Where shares are allotted in contravention of subsection (1), the allottee shall be liable to pay the company an amount equal to the amount of the discount and shall be liable to pay interest thereon at the appropriate rate. | ||
(3) Section 26 (4) shall apply for the purposes of this section as it applies for the purposes of that section. | ||
(4) The repeal of section 63 of the Principal Act effected by section 3 (2) shall not affect an application for an order sanctioning the issue of shares at a discount which has been made to the court under that section and which has not been withdrawn or disposed of before the appointed day, or an order made on or after that day in pursuance of any such application, and— | ||
(a) any such application may be proceeded with and any such order, if not made before the appointed day, may be made as if that section had not been repealed; and | ||
(b) shares may be allotted at a discount in accordance with any such order (whether made, before, on or after the appointed day) accordingly. |