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Section 426 of The Companies Act No. 17 of 2015: Liability of others if nominee fails to make payment in respect of shares

    

(1) This section applies to shares in a limited company that—
(a) are taken by a subscriber to the memorandum as a nominee of the company;
(b) are issued to a nominee of the company; or
(c) are acquired by a nominee of the company, partly paid up, from a third person.
(2) If the nominee, having been called on to pay an amount for the purposes of paying up, or paying any premium on, shares to which this section applies, fails to pay the amount within twenty-one days after being requested to do so, the following persons are jointly and severally liable with the nominee to pay the amount—
(a) in the case of shares that the nominee has agreed to take as subscriber to the memorandum—the other subscribers to the memorandum;
(b) in any other case—the persons who were directors of the company when the shares were issued to, or acquired by, the nominee.
(3) If, in proceedings for the recovery of an amount under subsection (2), it appears to the Court that the subscriber or director— (a) has acted honestly and reasonably; and
(b) having regard to all the circumstances of the case, ought fairly to be relieved from liability, the Court may make an order relieving the subscriber or director wholly or partly from the liability on such terms as the Court considers just.
(4) A subscriber to a company's memorandum or a director of a company who reasonably believes that a claim will or might be made for the recovery of such an amount—
(a) may apply to the Court for relief; and
(b) the Court has the same power to grant relief as it would have had in proceedings for recovery of the amount.
(5) This section does not apply to shares acquired by a nominee of the company if the company has no beneficial interest in the shares.

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

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