598 Public company: agreement for transfer of non-cash asset in initial period
598 Public company: agreement for transfer of non-cash asset in initial period
Companies Act 2006 | Legislation

(1)     A public company formed as such must not enter into an agreement—

(a)     with a person who is a subscriber to the company's memorandum,

(b)     for the transfer by him to the company, or another, before the end of the company's initial period of one or more non-cash assets, and

(c)     under which the consideration for the transfer to be given by the company is at the time of the agreement equal in value to one-tenth or more of the company's issued share capital,

unless the conditions referred to below have been complied with.

(2)     The company's “initial period” means the period of two years beginning with the date of the company being issued with a certificate under section 761 (trading certificate).

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