Section 108. Validation of shares improperly issued

(1) The Court may make an order validating the issue or allotment of the shares or confirming the terms of issue or allotment of the shares or both upon an application by the company or a shareholder or mortgagee of any of the shares or by a creditor of the company, if the Court is satisfied that in all the circumstances it is just and equitable to do so.

(2) The Court may make the order under subsection (1) if a company has purported to issue or allot shares and the creation, issue or allotment of the shares is invalid due to—

(a) any provision in this Act or any other written law;

(b) the constitution of the company or otherwise; or

(c) the terms of issue or allotment were inconsistent with or unauthorized by any such provision.

(3) The shares shall be deemed to have been validly issued or allotted on the terms of the issue or allotment of the shares upon an order of the Court being lodged with the Registrar.