Section 605(2)

If a company enters into an agreement in contravention of section 598 (public company: agreement for transfer of non-cash asset in initial period) and— the person who becomes the holder of the shares is also liable to pay that amount (jointly and severally with any other person so liable), unless he is exempted from liability under subsection (3) below. the agreement is or includes an agreement for the allotment of shares in the company, a person becomes a holder of shares allotted under the agreement, and by virtue of the agreement and allotment under it another person is liable to pay an amount under section 604, This applies whether or not the agreement also contravenes section 593.

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Source: legislation.gov.uk · retrieved 2026-09-04