553 Permitted commission
553 Permitted commission
Companies Act 2006 | Legislation

(1)     A company may, if the following conditions are satisfied, pay a commission to a 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 company.

(2)     The conditions are that—

(a)     the payment of the commission is authorised by the company's articles; and

(b)     the commission paid or agreed to be paid does not exceed—

(i)     10% of the price at which the shares are issued, or

(ii)     the amount or rate authorised by the articles,

whichever is the less.

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