50 Consideration for shares

(1) Subject to subsections (2) and (3), a share may be issued for consideration
in any form, including money, a promissory note, or other written
obligation to contribute money or property, immovable property, movable
property (including goodwill and knowhow), services rendered or a
contract for future services.

(2) Subject to section 55, the consideration for a par value share shall not be
less than the par value of the share.

(3) Subject to any provision to the contrary in its memorandum or articles, a
company may —

(a) issue bonus shares, partly paid shares and nil paid shares; and

(b) accept payment of consideration for a share in such installment
amounts and at such times after issue of the share as the company
may approve.

(4) If a share is issued in contravention of subsection (2), the person to whom
the share is issued is liable to pay to the company an amount equal to the
difference between the issue price and the par value.

(5) Where a par value company issues a par value share, the consideration in
respect of the share constitutes share capital to the extent of the par value
and the excess constitutes surplus.

(6) Subject to any limitations in its memorandum or articles, where a no par
value company issues a no par value share, the consideration in respect of
the share constitutes share capital to the extent designated by the directors
and the excess constitutes surplus, except that the directors shall designate
as share capital an amount of the consideration that shall be at least equal
to the amount that the share is entitled to as a preference, if any, in the
assets of the company upon its liquidation.