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Version status: In force | Document consolidation status: Updated to reflect all known changes
Version date: 1 October 2009 - onwards
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598. Public company: agreement for transfer of non-cash asset in initial period

(1) A public company formed as such must not enter into an agreement -

(a) with a person who is a subscriber to the company's memorandum,

(b) for the transfer by him to the company, or another, before the end of the company's initial period of one or more non-cash assets, and

(c) under which the consideration for the transfer to be given by the company is at the time of the agreement equal in value to one-tenth or more of the company's issued share capital,

unless the conditions referred to below have been complied with.

(2) The company's "initial period" means the period of two years beginning with the date of the company being issued with a certificate under section 761 (trading certificate).

(3) The conditions are those specified in -

section 599 (requirement of independent valuation), and

section 601 (requirement of approval by members).

(4) This section does not apply where -

(a) it is part of the company's ordinary business to acquire, or arrange for other persons to acquire, ass

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