An approximate continuum model of a ductile, porous material is used to study the influence of the nucleation and growth of micro-voids on the formation of shear bands and the occurrence of surface shear fracture in a solid subject to plane strain tension. Bifurcation into diffuse modes is analysed for a plane strain tensile specimen described by these constitutive relations, which account for a considerable plastic dilatancy due to void growth and for the possibility of non-normality of the plastic flow law. In particular, bifurcation into surface wave modes and the possible influence of such modes triggering shear bands is investigated. For solids with initial imperfactions such as a surface undulation, a local material inhomogeneity on an inclusion colony, the inception and growth of plastic flow localization is analysed numerically. Both the formation of void-sheets and the final growth of cracks in the shear bands is described numerically. Some special features of shear band development in the solid obeying non-normality are studied by a simple model problem.