Companies Act 2014 section 1029

Supplemental provisions in relation to section 1028

Section 1029 provides supplemental rules supporting the requirement under section 1028 for an expert's report on non-cash consideration before a PLC allots shares, including penalties for contravention, valuation requirements for mixed consideration, and relevant definitions.

• Where shares are allotted in breach of section 1028, the allottee must pay the PLC the nominal value plus any premium in cash, together with interest, ensuring the shares are fully paid for
• Where non-cash consideration is given partly for shares and partly for other consideration such as debentures, the expert must carry out additional valuations to determine the proportion attributable to the shares and report on those valuations
• Bonus or capitalisation issues — where shares are paid up from reserve accounts or the profit and loss account — are exempt from the expert's report requirement under section 1028
• Contravention of section 1028 or section 1029 by a PLC or any of its officers in default is a category 3 offence

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