When a company allots new shares it is usually in consideration of cash being paid by the investor. Sometimes shares are allotted when the consideration is non-cash or a mixture of cash and non-cash. Inform Direct makes this easy to record. For help with allotting shares please see How Do I Allot Shares?
Non-cash assets exchanged for shares would typically be a tangible asset such as a building or a machine, or non-tangible items such as shares in another company, IP rights or even time spent.
During the allotment process, after ascertaining whether the shares are fully paid, partly paid or nil paid, Inform Direct will ask whether the consideration was:
- Fully in cash (the default choice)
- Fully non-cash
- Mixture of cash and non-cash
The option selected will determine the information required to complete the allotment.
The default will always select Fully in Cash but the other options are detailed below:
If Fully non-cash is selected
You will be required to enter the value of the non-cash consideration say £250,000 and a description. Please note that this description will be sent to Companies House.
Once you have completed the description click the green 'Next' button. You will then return to the standard allotment flow.
Note: Inform Direct will automatically calculate the Share premium per share based on the value of the non-cash consideration
If Mixture of cash and non-cash is selected
You will be required to enter the value of the cash consideration and the non-cash consideration.
You will still need to give a description of the non-cash consideration which will be sent to Companies House.
Note: Inform Direct will automatically calculate the Share premium per share based on the value of the total cash and non-cash consideration being paid.