Section 116, The Companies Act, 2009

(1) Where a company agrees to accept for its sharesotherwise than wholly in cash, it shall appoint an independent valuer who shall determine the true value of the consideration other than cash and prepare and submit to the company a report on the value of the consideration. (2) The valuer shall be entitled to require from the officers of the company such information and explanation as he thinks necessary to enable him carry out the valuation or make the report under subsection (3). (3) The company shall, not more than three days after the receipt by it of the valuer’s report, send a copy of it to the proposed purchaser of shares, and indicate to the proposed purchaser whether or not it intends to accept the consideration as payment or part payment for its shares by the valuer as worth at least as much as may be credited as paid up in respect of the shares allowed to the proposed purchaser. (4) A company shall not accept as payment or partpayment for its shares consideration other than cash, unless the cash value of the consideration as determined by the valuer is worth at least as much as may be credited as paid-up in respect of the shares allowed to the proposed purchaser. (5) A valuer who, in his report or otherwise, knowingly or recklessly makes a statement which is misleading, false or deceptive in a material particular shall be guilty of an offence and be liable to imprisonment for a term not exceeding 12 months or to a fine not exceeding Le8,000,000 or both such imprisonment and fine. (6) A valuer shall be paid by the company and the buyer of the shares such amount as may be agreed upon. (7) For the purposes of this section “valuer” means an auditor, a valuer, a surveyor or an accountant not being a person in the employment of the company nor an agent or associate of the company or any of its directors or officers