511. General prohibition of commissions, discounts and allowances

Past version: effective from 29/04/2020 - 28/04/2020
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(1) Except as permitted by section 512 (permitted commission), a company must not apply any of its shares or capital money, either directly or indirectly, in payment of any commission, discount to an issue price or allowance to any person in consideration of his-
(a) subscribing or agreeing to subscribe (whether absolutely or conditionally) for shares in the company, or
(b) procuring or agreeing to procure subscriptions (whether absolute or conditional) for shares in the company.
(2) It is immaterial how the shares or money are so applied, whether by being added to the purchase money of property acquired by the company or to the contract price of work to be executed for the company, or being paid out of the nominal purchase money or contract price, or otherwise.
(3) Nothing in this section affects the payment of such brokerage as has previously been lawful.