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Companies Act 2006

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Changes to legislation:

Companies Act 2006, Section 798 is up to date with all changes known to be in force on or before 03 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

798Penalty for attempted evasion of restrictionsU.K.

This section has no associated Explanatory Notes

(1)This section applies where shares are subject to restrictions by virtue of an order under section 794.

(2)A person commits an offence if he—

(a)exercises or purports to exercise any right—

(i)to dispose of shares that to his knowledge, are for the time being subject to restrictions, or

(ii)to dispose of any right to be issued with any such shares, or

(b)votes in respect of any such shares (whether as holder or proxy), or appoints a proxy to vote in respect of them, or

(c)being the holder of any such shares, fails to notify of their being subject to those restrictions a person whom he does not know to be aware of that fact but does know to be entitled (apart from the restrictions) to vote in respect of those shares whether as holder or as proxy, or

(d)being the holder of any such shares, or being entitled to a right to be issued with other shares in right of them, or to receive any payment on them (otherwise than in a liquidation), enters into an agreement which is void under section 797(2) or (3).

(3)If shares in a company are issued in contravention of the restrictions, an offence is committed by—

(a)the company, and

(b)every officer of the company who is in default.

(4)A person guilty of an offence under this section is liable—

(a)on conviction on indictment, to a fine;

(b)on summary conviction, to a fine not exceeding the statutory maximum.

(5)The provisions of this section are subject—

(a)to any directions under—

  • section 794(2) (directions for protection of third parties), or

  • section 799 or 800 (relaxation or removal of restrictions), and

(b)in the case of an interim order under section 794(3), to the terms of the order.

Commencement Information

I1S. 798 wholly in force at 20.1.2007, see s. 1300 and S.I. 2006/3428, art. 3(1)(d) (subject to art. 5, Sch. 1 and with arts. 6, 8, Sch. 5)

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