Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 1035

1035. (1) A company shall not make an allotment of shares in the company if
the shares have been offered for subscription, or an invitation to subscribe
for the shares has been issued, whether the offer or invitation was made or
issued before or after the commencement of this Part, unless:

   (a)  the minimum subscription has been subscribed; and

   (b)  the amount payable on application for the shares so subscribed has
        been received by the company.

(2) For the purposes of subsection (1), where a company has, whether before or
after the commencement of this Part, received a cheque or order for the
payment of money for the amount payable on application for an allotment of
shares in the company, the amount shall be deemed not to have been received by
the company until the cheque or order is paid by the banker or other person on
which it is drawn.

(3) In ascertaining for the purposes of subsection (1) whether the minimum
subscription has been subscribed in relation to an allotment of shares, there
shall, in respect of each share for the allotment of which an application has
been made, be deemed to have been subscribed an amount equal to the sum of:

   (a)  the nominal value of that share; and

   (b)  if the share is, or is to be, issued at a premium-the amount of the
        premium payable on the share; less any amount payable otherwise than
        in cash.

(4) Except in the case of a no liability company, the amount payable on
application for each share that has been offered or in respect of which an
invitation to subscribe has been issued shall be not less than 5% of the
nominal amount of the share.