Section 56: Consideration for issue of shares

56. Consideration for issue of shares (1) Before it issues any shares, the Board shall determine the amount of the consideration for which the shares shall be issued and shall ensure that such consideration is fair and reasonable to the company and to all existing shareholders. (2) The consideration for which a share is issued may take any form including payment in cash, promissory notes, contracts for future services, real or personal property, or other securities of the company. (3) The amount of consideration for which a share with par value is issued in accordance with any dispensation given by the Registrar under section 47, shall not be less than the par value. C35 – 47 [Issue 4] Companies Act