Companies Act 2014 section 1294

Application of certain other provisions of Part 17 on allotments to a company that passed resolution for re-registration

Section 1294 extends the PLC rules on paying for shares with non-cash consideration to any company that has resolved to re-register as a PLC.

• Once a company passes a resolution to re-register as a PLC, it must comply with the same share allotment rules that apply to PLCs.
• These rules govern how share capital is subscribed for and restrict the use of non-cash consideration (such as assets or services) when paying for shares.
• An independent valuation of non-cash consideration is required, just as it would be for an existing PLC allotting shares.
• These obligations remain in force unless the company revokes its re-registration resolution before the process is completed.