Non Cash Consideration for Shares….

This topic has 2 replies, 3 voices, and was last updated 15 years ago by MikeLittle.

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April 17, 2011 at 12:46 pm #48124
willynwilson
Member
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As public companies can accept non cash consideration, as long as they are valued at nominal value,

what happens if the non cash consideration exceeds the nominal value?

cash consideration would be credited to the share premium, so would the company have to credit share premium with non cash consideration?
April 21, 2011 at 6:47 pm #80901
MikeLittle
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Quote from the Companies Act: “When shares are issued, whether for cash or otherwise, for an amount in excess of their nominal value, an amount equal to that excess shall be credited to the Share Premium Account”
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