Issuance of fully paid-up shares as gifts is invalid; allotment without consideration is ultra vires. A company limited by shares cannot issue shares as fully paid up by way of gift or bonus without payment in money's worth; even a bona fide registered contract does not validate such an allotment, which is ultra vires. Therefore, issuing fully paid up shares by donation to a charitable trust is not a valid allotment.
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Provisions expressly mentioned in the judgment/order text.
Issuance of fully paid-up shares as gifts is invalid; allotment without consideration is ultra vires.
A company limited by shares cannot issue shares as fully paid up by way of gift or bonus without payment in money's worth; even a bona fide registered contract does not validate such an allotment, which is ultra vires. Therefore, issuing fully paid up shares by donation to a charitable trust is not a valid allotment.
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