Abstract

This chapter deals with ‘pay in’ rules, i.e. the regulation of the amount of share capital that is put into a company and the forms of consideration that a company can accept in return for its shares. The basic idea that underpins ‘pay in’ rules is that investors should in fact put into the company the amount in cash or non-cash consideration that they have agreed to invest in return for their shares. The discussions cover the minimum price of individual shares (par values); minimum capital; allotted, issued, and equity share capital; rules governing payment for shares; rules governing share premiums; and other capital contributions.

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