Section 373 of The Companies Act No. 17 of 2015: Public company: agreement for transfer of non-cash asset in initial period
(1) A public company formed as such shall not enter into an agreement—(a) with a person who is a subscriber to the company's memorandum;
(b) for the transfer by the person to the company or another, before the end of the company's initial period; and
(c) under which the consideration for the transfer to be given by the company is at the time of the agreement equal in value to one-tenth or more of the company's issued share capital,
unless the relevant conditions have been complied with.
(2) For the purpose of subsection (1), a company's initial period is the period of two years from and including the date on which the company is issued with a certificate under section 516.
(3) For the purpose of subsection (1), the conditions are those specified in sections 374 and 376.
(4) This section does not apply if—
(a) it is part of the company's ordinary business to acquire; or arrange for other persons to acquire, assets of a particular description; and
(b) the agreement is entered into by the company in the ordinary course of that business.
(5) This section does not apply to an agreement entered into by the company under the supervision of the Court or of an officer authorised by the Court for the purpose.
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