In what circumstances may a registered company pay a commission?

Under Section 55 (1) of the Companies Act a registered company may pay a commission to any person in consideration for his:
– Subscribing for the company‟s shares
– Agreeing to subscribe
– Securing subscription for the company‟s shares
– Agreeing to procure subscription for the shares.
The payment of such commission may be conditional or absolute. However the commission is only payable if:
It is authorised the articles
It does not exceed 10% of the price at which the shares are to be issued or the amount or rate authorised the articles whichever is less
 Particulars of the discount are disclosed in the company‟s prospectus

(Visited 38 times, 1 visits today)
Share this on:

Leave a Reply

Your email address will not be published.