MENU

Section 355 of The Companies Act No. 17 of 2015: Public companies: effect of irregular allotment if issue not fully subscribed

    

(1) If an allotment of shares is made to an applicant in contravention of section354, the applicant has a right to avoid the allotment at any time within one month after the date of the allotment, but not later.
(2) An allotment made in contravention of section 356 is voidable even if thecompany is in liquidation or under administration.
(3) If section 354 is contravened with respect to an allotment, each director ofthe company who is in default is liable to compensate the company and the allottee respectively for any loss, damages or expenses that the company or allottee may have sustained or incurred because of the contravention.
(4) Proceedings to recover any such loss, damages or expenses may not be brought more than three years after the date of the allotment.

« Previous:   Section 354 - Public companies: allotment if issue not fully subscribed          Next: »   Section 356 - Shares not to be allotted at a discount

Disclaimer: This document is not to be taken as legal advise.

Enhance Your Research with Bookmarks and Annotations

Here's how you can use these features:

  • To bookmark this page, click the "Bookmark this Page" button below the document title.
  • To add an annotation, highlight text in the document and select "Add Annotation" from the toolbar that appears.
  • These features are great for organizing your research and keeping track of key information.
  • You can view and manage your bookmarks and annotations on your Bookmarks and Annotations page.

Cited By:

More Sections