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Companies Act 2006

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586Public companies: shares must be at least one-quarter paid upU.K.
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(1)A public company must not allot a share except as paid up at least as to one-quarter of its nominal value and the whole of any premium on it.

(2)This does not apply to shares allotted in pursuance of an employees' share scheme.

(3)If a company allots a share in contravention of this section—

(a)the share is to be treated as if one-quarter of its nominal value, together with the whole of any premium on it, had been received, and

(b)the allottee is liable to pay the company the minimum amount which should have been received in respect of the share under subsection (1) (less the value of any consideration actually applied in payment up, to any extent, of the share and any premium on it), with interest at the appropriate rate.

(4)Subsection (3) does not apply to the allotment of bonus shares, unless the allottee knew or ought to have known the shares were allotted in contravention of this section.

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