MENU

Section 435 of The Companies Act No. 17 of 2015: Public companies: general rule against lien or charges on own shares

    

(1) A lien or other charge of a public company on its own shares(whether taken expressly or otherwise) is void, except as permitted by this section.(
2) In the case of any description of company, a charge is permitted if the shares are not fully paid up and the charge is for an amount payable in respect of the shares.
(3) In the case of a company whose ordinary business—
includes lending money; or
(b) consists of or includes providing credit or hiring or selling goods under hire-purchase, conditional sale or retention of title agreements, a charge is permitted (whether the shares are fully paid or not) if it arises in connection with a transaction entered into by the company in the ordinary course of that business.
(4) In the case of a company whose conversion into a public company has been registered, a charge is permitted if it was in existence immediately before the application for registration was lodged with the Registrar.

« Previous:   Section 434 - Transfer to reserve on acquisition of shares by public company ornominee          Next: »   Section 436 - Interests to be disregarded in determining whether company has beneficial interest

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