(1) A public company must not allot shares as fully or partly paid up (as to their nominal value or any premium on them) otherwise than in cash unless -
(a) the consideration for the allotment has been independently valued in accordance with the provisions of this Chapter,
(b) the valuer's report has been made to the company during the six months immediately preceding the allotment of the shares, and
(c) a copy of the report has been sent to the proposed allottee.
(2) For this purpose the application of an amount standing to the credit of -
(a) any of a company's reserve accounts, or
(b) its profit and loss account,
in paying up (to any extent) shares allotted to members of the company, or premiums on shares so allotted, does not count as consideration for the allotment.
Accordingly, subsection (1) does not apply in that case.
(3) If a company allots shares in contravention of subsection (1) and either -
(a) the allottee has not received the valuer's report required to be sent to him,
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