Section 362 of The Companies Act No. 17 of 2015: Public companies: shares to be at least one quarter paid up
(1) A public company shall not allot a share except as paid up at least as toone-quarter of its nominal value and the whole of any premium on it.
(2) Subsection (1) does not apply to shares allotted under share scheme ofan employee.
(3) If a company allots a share in contravention of this section—
(a) the share is to be treated as if one-quarter of its nominal value, together with the whole of any premium on it, had been received; and
(b) the allottee is liable to pay the company the minimum amount that should have been received in respect of the share under subsection (1) (less the value of any consideration actually applied in payment up, to any extent, of the share and any premium on it), with interest at the appropriate rate.
(4) Subsection (3) does not apply to the allotment of bonus shares, unless the allottee knew or ought to have known the shares were allotted in contravention of this section.
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