542. Public companies: must not accept undertaking to do work or perform services
Past version: effective from 14/06/2015 - 13/06/2015
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(1) A public company must not accept at any time, in payment up of its shares, an undertaking given by any person that he or another should do work or perform services for the company or any other person.
(2) If a public company accepts such an undertaking in payment up of its shares, the holder of the shares when they are treated as paid up (in whole or in part) by the undertaking is liable—
(a) to pay the company in respect of those shares an amount equal to their aggregate issue price, or, if the case so requires, such proportion of that amount as is treated as paid up by the undertaking, and
(b) to pay interest at the appropriate rate on the amount payable under subsection (2)(a).
(3) The reference in subsection (2) to the holder of shares includes a person who has an unconditional right—
(a) to be included in the company's register of members in respect of those shares, or
(b) to have an instrument of transfer of them executed in his favour.