What must be the form of payment for shares according to company law?

The correct answer is that the form of payment for shares must be money or money's worth. This principle is grounded in company law to ensure that a company receives adequate value when issuing shares.

When shares are issued, the company must receive something of value in exchange for the equity provided to shareholders. This "value" can come in various forms, not limited to just cash. "Money's worth" can include other tangible assets or services that can be measured in financial terms. For example, if a shareholder contributes equipment, intellectual property, or services to the company, these can constitute valid forms of payment for the shares, provided they can be reasonably valued.

This flexibility is important as companies may seek different types of investments that can enhance their operations or provide capital without necessarily involving cash transactions. Understanding the definition of "money or money's worth" is crucial because it encompasses a broader scope of acceptable payment forms, aligning with the principle that companies should secure real value in their equity raises.

Options such as cash only, order notes, or company bonds are too restrictive or not sufficiently aligned with the fundamental principle of fair exchange outlined in company law.