| Commentary

160 Prohibition of commissions, discounts and allowances

| Commentary

160 Prohibition of commissions, discounts and allowances

As a natural extension of the basic rule prohibiting a company from allotting shares at a discount1, the Companies Act 2006 also provides that, with one exception, a company must not apply any of its shares or capital money (either directly or indirectly) in payment of any commission, discount or allowance to any person in consideration of his subscribing or agreeing to subscribe (whether absolutely or conditionally) for shares in the company, or procuring or agreeing to procure subscriptions (whether absolute or conditional) for shares in the company2. It is not possible to

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