Week 13 - Issue of Shares for Non-cash Consideration in Public Companies Flashcards
1
Q
What do more restrictions apply to?
A
Public companies issuing shares for non-cash consideration
2
Q
s.585
A
Undertaking for future personal services is banned as consideration for shares
3
Q
Usually, what must happen to any non-cash consideration?
A
It must be valued by an independent expert
4
Q
How must reports be filed?
A
With the Companies Registry, if they are a public company and they’re accepting things other than cash for those shares
5
Q
What are the sanctions for non-compliance like?
A
- fines
- could be struck off if they are a director that has been involved
- if company goes insolvent, looked into for fraudulent/wrongful trading
