Companies Act 2014 section 1319

Shares allotted by body corporate applying to register as PLC between balance sheet date and passing of registration resolution

Section 1319 deals with the valuation requirements that apply when a body corporate seeking to register as a PLC has allotted shares paid up otherwise than in cash during the period between its balance sheet date and the passing of its registration resolution.

• Where a body corporate allots shares between its balance sheet date and the passing of its registration resolution, and those shares are fully or partly paid up (as to nominal value or any premium) otherwise than in cash, special valuation rules apply.
• The body corporate cannot apply to register as a PLC unless the non-cash consideration for the allotment has been independently valued and reported on in accordance with Chapter 3 of Part 17, with the report made within the six months immediately before the allotment date.
• Specific provisions from Chapter 3 of Part 17 — namely section 1028(5) to (11), section 1029(4), and section 1030 — govern how the valuation and report must be carried out.
• Where exemptions from the valuation requirement exist under section 1028(1), those same exemptions apply equally to the valuation requirement under this section.

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