A public company must not allot shares as fully or partly paid up (as to their nominal value or any premium on them) otherwise than in cash unless—
the consideration for the allotment has been independently valued in accordance with the provisions of this Chapter,
the valuer's report has been made to the company during the six months immediately preceding the allotment of the shares, and
a copy of the report has been sent to the proposed allottee.
If a company allots shares in contravention of subsection (1) and either—
the allottee has not received the valuer's report required to be sent to him, or
there has been some other contravention of the requirements of this section or section 596 that the allottee knew or ought to have known amounted to a contravention,
the allottee is liable to pay the company an amount equal to the aggregate of the nominal value of the shares and the whole of any premium (or, if the case so requires, so much of that aggregate as is treated as paid up by the consideration), with interest at the appropriate rate.
This section has effect subject to—
section 594 (exception to valuation requirement: arrangement with another company), and
section 595 (exception to valuation requirement: merger or division).