Companies Act 2014 section 1320

Application of certain other provisions of Part 17 on allotments to a body that passed resolution for registration as a PLC

Section 1320 extends the share allotment rules that normally apply to public limited companies (PLCs) so that they also apply to any corporate body that has resolved to register as a PLC but has not yet completed (or has not revoked) that process.

• The share capital subscription and allotment rules in sections 1025 to 1033 apply to a body corporate that has passed an unrevoked resolution to register as a PLC, just as they apply to an existing PLC.
• The relief provisions in section 1036, the special rules on issuing shares to subscribers in section 1037, and the enforceability of undertakings in section 1038 likewise apply to such a body corporate.
• These rules cover matters such as minimum share capital requirements, the valuation of non-cash consideration for shares, and the enforceability of undertakings given in connection with share allotments.
• The effect is that a body corporate in the process of converting to PLC status must comply with the same allotment disciplines as if it were already a PLC, ensuring no regulatory gap exists during the transition.