Your Company Incorporation Documents: Increase Or Decrease in Share Capital – Make Changes To Your Company Share Capital: Increase Or Decrease in Share Capital. In fact, in Your Company Incorporation Documents you can make changes: Increase Or Decrease in Share Capital. This article concerns increase or decrease in share capital of private limited liability company in Nigeria, increase in share capital @ CAC, stamp duty on share capital in Nigeria and minimum share capital for private limited company in Nigeria. Furthermore, changes To Your Company Share Capital – Increase Or Decrease in Share Capital also relates to share capital accounting, share capital in balance sheet and cash flow statement.
Your Company Incorporation Documents: Increase Or Decrease in Share Capital
Table of Contents
In fact, Increase/decrease share capital of a private limited liability company is the subject matter. In this article you will Learn how to increase/decrease share capital of a private limited company along with its consequences in share allotments for the shareholders. As a matter of fact, this post deals with changes in company authorised and issued share capital. It looks at the implications of such changes, and how to remedy them. It further gives details of the CAC requirements for an increase or decrease in a company’s authorised share capital and gives direction on how you can obtain help to make these changes in your incorporation documents. You have to read through for all of these.
Your Company Incorporation Documents: Increase Or Decrease in Share Capital
To start with, here are relevant questions relating to this subject matter.
- Can a company increase the number of its shares?
- Can a company decrease the number of its shares?
- What happens when a company increases or decreases its number of shares?
- Furthermore, Does the increase/decrease in shares affect share allotments?
- Is there any differences between authorised share capital and issued share capital?
- Must issue capita always equal allotted capital?
- What is the minimum share?
- Why do companies make changes in their authorised and issued share capital?
- How can these changes be effected in the company’s incorporated documents.
After all, this is one of the post incorporation adjustments or changes you can make in your incorporation documents. In the listed questions above, you can learn one thing or the other in relation to this topic. Just hold it there and let’s look at the requirements always demanded by CAC to effect these changes.
REQUIREMENTS FOR FILING NOTICE OF CHANGE IN AUTHORISED SHARE CAPITAL
1. INCREASE IN SHARE CAPITAL
These requirement and conditions ust apply.
- You have to submit through us a special board resolution for this change. The resolution must be signed by a director and the secretary or 2 directors only.
- A formal application requesting for this change, and giving reasons for the change. This must be signed by 2 directors or a director and secretary.
- Submit duly stamped and signed form for this
- Furthermore, you have to bring your company annual returns up-to date
- Updated section 553 of CAMA, where applicable
- Payment of the appropriate fees.
- Evidence of payment of FRC annual dues.
Other Conditions:
- This filing must be within 15 days of passing the resolution. This increase will not take effect until the directors confirm to the commission that at least 25% of the shares are issued.
- If after 6 months of this filing the 25% condition is not met, the company will have to file a new notice for increase in shares if it still wants to do so.
Your Company Incorporation Documents: Increase Or Decrease in Share Capital
2. DECREASE INSHARE CAPITAL
Again, these conditions must apply.
- Submit through us a special board resolution for this change. This resolution must be signed by a director and the secretary or 2 directors only.
- A formal application requesting for this change, and giving reasons for the change. This must be signed by 2 directors or a director and secretary.
- In addition, Submit a certified true copy of court instruction for this change
- Evidence of publications, if directed by the court
- Court approved minutes of meeting stating the amount of share capital, number into which the shares are divided into, amount of each share, and amount deemed paid at the time of incorporation,
- New & Duly stamped Memorandum and article of association reflecting these changes.
- You have to bring your company annual returns up-to date
- Updated section 553 of CAMA, where applicable
- Payment of the appropriate fees.
Other Conditions:
This filing must be within 15 days of the court order for the reduction in shares.
As you can see, everything you need to know about changes in your corporate documents, changes in share capital, has been highlighted here. If you still need more clarifications, send in your questions or comments through our comment platform on this page. In fact, if you benefited in this exposure, do well to share this post to reach others. Like us on our Facebook handle if you will like regular updates like this.
How May We Help You?
In fact, our approach to this is simple and good for everyone at all times. Simply give us the personal data of every persons involved and the court order . We will generate the other information for you. Do the publication etc. This is the only way you can do this very fast.
In conclusion, we are Chartered accountants. Our firm Complete Full Marks Consultants Limited, is an accounting, auditing, taxation and management consulting firm. We are CAC accredited agents and consultants. So we are sure of how to help you better. Just contact us.
Finally, Contact us if you have need of us, via,
e-mail: cfmclimited@gmail.com
Phone: +234 8034347851, +234 8097900795
Website: www.completefmc.com
Post incorporation changes: Change of Company Name
Deacon Anekperechi Nworgu, a seasoned economist who transitioned into a chartered accountant, auditor, tax practitioner, and business consultant, brings with him a wealth of industry expertise spanning over 37 years.
