Section 359 of The Companies Act No. 17 of 2015: Meaning of payment in cash
For the purposes of this Act, a share in a company is paid up, as to its nominal value or any premium on it, in cash, or allotted for cash, if the consideration received for the payment or allotment is a cash consideration.
(2) In subsection (1), “cash consideration” means—
(a) cash received by the company;
(b) a cheque received by the company in good faith that the directors have no reason for suspecting will not be paid;
(c) a release of a liability of the company for a liquidated sum;
(d) an undertaking to pay cash to the company at a future date; or
(e) payment by any other means giving rise to a present or future entitlement of the company or a person acting on the company's behalf to a payment, or credit equivalent to payment, in cash.
(3) The regulations may provide that particular means of payment specified in the regulations are to be 40 regarded as being included in subsection (2)(e).
(4) In relation to the allotment or payment up of shares in a company—
(a) the payment of cash to a person other than the company; or
(b) an undertaking to pay cash to a person other than the company, counts as consideration other than cash.
(5) Subsection (4) does not apply to or in relation to those sections of this Part relating to the allotment of equity securities and to the existing shareholders' right of preemption.
(6) For the purpose of determining whether a share is or is to be allotted for cash, or paid up in cash, cash includes foreign currency.
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