Companies Act, 1973 (Act No. 61 of 1973)

Chapter V: Share capital, Acquisition by Companies of own Shares, Shares, Allotment and Issue of Shares, Members and Register of Members, Debentures, Transfers, and Restrictions on Offering Shares for Sale

Allotment and issue of shares

93. Register and return as to allotments
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1)Every company having a share capital shall keep at its registered office or at the office where it is made up, a register of allotments of shares.

 

2)Every company shall forthwith after the allotment of any shares enter in the register of allotments the names and addresses of the allottees, the number of shares allotted to each of them, the amount paid for such shares and in the case of shares allotted as fully paid-up otherwise than for cash, full particulars of the consideration in respect of which the allotment was made and of the transaction or contract concerned.

 

3)Whenever a company makes any allotment of its shares, the company shall within one month thereafter lodge with the Registrar-
a)a return in the form prescribed stating full particulars of the nominal and previously issued share capital or stated capital and the number and description of the shares comprised in the allotment;
b)in the case of shares allotted otherwise than for cash, a copy of the contract in writing constituting the title of the allottee to the allotment, together with any contract of sale, or for service or other consideration in respect of which that allotment was made (or if such contract is not in writing, a memorandum containing full particulars of such contract), and a return in the prescribed form stating the number and description of the shares so allotted, the name and address of such allottee and the consideration for which they have been allotted.

 

4)If any allotment of shares becomes void as a result of any provision of this Act, the company shall within one month after the date on which such allotment becomes void, lodge a notice in the prescribed form to that effect with the Registrar.

 

5)If default is made in complying with any of the requirements of this section, the company, and every director or officer of the company who knowingly is a party to the default, shall be guilty of an offence.

 

6)The provisions of section 113 shall mutatis mutandis apply to the inspection of and the furnishing of copies of or extracts from such register of allotments.