Companies Act 2014 section 1360

Further supplemental provisions in relation to section 1358: effect of irregular allotment

Section 1360 deals with the consequences when a PLC makes an allotment of shares that breaches the minimum subscription requirements, including the right to cancel the allotment and the personal liability of directors involved.

• An applicant who receives shares allotted in breach of minimum subscription rules can cancel that allotment within 30 days, even if the PLC is being wound up
• If an allotment is cancelled, the PLC must notify the Registrar within 30 days of the cancellation
• Any director who knowingly breaches or permits a breach of the allotment rules is personally liable to compensate both the PLC and the allottee for any resulting losses, damages, costs or expenses
• Legal proceedings to recover such losses must be commenced within 2 years after the date the return of allotments was delivered to the Registrar

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