What is required for any non-cash payment for shares?

For any non-cash payment for shares, an independent valuation is required to ensure that the shares are issued at fair value. This process helps protect the interests of both the company and its shareholders by providing an objective assessment of the asset being exchanged for shares. An independent valuation is particularly important when the asset involved may not have a readily ascertainable market value, such as services, intellectual property, or real estate.

This requirement is integral in maintaining the credibility and fair treatment of all parties involved in the transaction, as it addresses potential conflicts of interest and ensures that the value of the shares issued is substantiated by an expert assessment. It also helps prevent issues related to under- or overvaluing the shares, which could lead to disputes among existing shareholders or regulatory scrutiny.

While audit certification, board of director approval, and shareholder assent may be important in various contexts of corporate governance and transactions, they do not specifically address the valuation requirement for non-cash payments in the issuance of shares. An independent valuation directly serves the purpose of confirming the fairness of the consideration being exchanged, making it the most relevant requirement in this scenario.