Companies Act 2014 section 833

Allotment of share not fully paid for in cash by company that has a restricted person

Section 833 deals with the consequences when a company with a restricted director allots shares that have not been fully paid for in cash, as required by the capitalisation rules in section 819(3)(c).

• Where a company with a restricted person allots shares not fully paid for in cash, the allottee must pay the company the full nominal value plus any premium, in cash
• Interest at the appropriate rate is also payable on the amount owed
• Subsequent holders of those shares are jointly and severally liable for the same amount, unless they purchased the shares for value without actual knowledge of the non-compliance, or derived title from someone who was not themselves liable
• A "holder" includes anyone with an unconditional right to be entered on the company's register of members or to have a transfer instrument executed in their favour