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What should the directors do with the share capital paid by shareholders?

Best practice may be to put the money in a bank account, as it evidences that it's actually been paid. Perhaps the directors can speak to the bank, or search around, to get an account with no fees (to ensure the share capital is not eroded by bank fees).
 
If they don't want to do that, then there's nothing stopping them keeping the money in, for example, a petty cash box. However doing this may make it difficult to prove the shareholders actually paid for their shares.