Consideration for shares in public company: cash is king

In Zavarco plc v Sidhu [2022] EWCA Civ 1040, the Court of Appeal held that shares which were allegedly allotted as part of a share for share exchange arrangement were actually issued as subscriber shares and, therefore, were required to be paid up in cash.   

Allotment of shares in public companies

The general rule in the Companies Act 2006 (CA 2006) is that payment for the allotment of shares in a company can be in money or money’s worth. That general rule is, however, subject to additional rules for public companies, including that: