COMPANIES ACT - 1963 (ACT 179)

    Section - 42 - Payment of Shares

    (1) Except on a capitalisation issue pursuant to subsection (1) of section 74 of this Code, shares shall not be issued otherwise than for valuable consideration paid or payable to the company and unless otherwise agreed shares shall be paid for in cash.

    (2) If a company shall have agreed to accept payment for any shares otherwise than wholly in cash the company shall, within twenty-eight days after the allotment of such shares, deliver to the Registrar for registration a contract in writing duly stamped evidencing the terms of such agreement and the true value of the consideration or, if such agreement shall not have been reduced to writing, particulars in the prescribed form of such agreement duly stamped, as if it were a written agreement:

    Provided that such particulars shall not be required on a capitalisation issue of shares pursuant to subsection (1) of section 74 of this Code.

    (3) The statement in the agreement of the value of the non-cash consideration shall be prima facie evidence of the true value thereof, but when a company limited by shares is in course of being wound up under the Bodies Corporate (Official Liquidation) Act, 1963 (Act 180) the liquidator or any creditor may apply to the Court and if the Court is satisfied that the true value of such consideration was less than stated it may, in its discretion, direct that the shares shall be treated as unpaid to such an amount as its shall direct.