This is the amount the sole member/shareholder agrees to pay for EACH SHARE in
the proposed company, irrespective of when it will be payable. It may be as
little as AU$'0.00' or as much as you like (subject, of course, to the
member/shareholder being able to afford to pay this amount for EACH SHARE
which the member/shareholder will initially own/hold in the proposed company - the
member/shareholder will be legally bound to pay this amount to the company
on each of the number of shares you specify).
This amount may be agreed to be payable:
· entirely on incorporation,
· partly on incorporation and partly subsequent to incorporation,
· entirely subsequent to incorporation.
As mentioned above, the member/shareholder will be legally bound to pay this amount to the company. Do not assume that this will present no problem - for example, if the company was to go into liquidation, the liquidator would be able, and would be likely to, (successfully) sue the member/shareholder for any amount which the member/shareholder had agreed to pay per share and which remained unpaid.
Where should this money (if any) go?
To the extent that it is paid on incorporation, this amount-
· will form part of the company's initial capital; and
· ought (as a matter of good practice) be the paid into the company's bank account as the first deposit.
To the extent that it is paid subsequent to incorporation, this amount-
· will also form part of the company's capital; and
· ought (as a matter of good practice) be the paid into the company's bank account.
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