Your Company Incorporation Documents: Increase Or Decrease in Share Capital

Your Company Incorporation Documents: Increase Or Decrease in Share Capital 

Your Company Incorporation Documents: Increase Or Decrease in Share Capital – Make Changes To Your Company Share Capital: Increase Or Decrease in Share Capital. 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. 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.
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?
  • 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.

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. 

Your Company Incorporation Documents: Increase Or Decrease in Share Capital 

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
  • 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

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.
  • 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. 
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. 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.

Your Company Incorporation Documents: Increase Or Decrease in Share Capital 

How May We Help You?

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.

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.


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

Your Company Incorporation Documents: Increase Or Decrease in Share Capital 

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