Reduction In Share Capital
NGN 25,000.0
7 days
Corporate Amendment
Description
Information about the compliance service
Companies can allocate their unissued share capital in several ways. This includes distributing shares to existing shareholders, offering them to new potential shareholders, or reducing the total share capital to match what's already been issued. However, companies must ensure they maintain the minimum required share capital throughout this process. This decision often comes up when businesses are restructuring their capital or looking to bring in new shareholders.
Requirements
Info and documents needed for this service
- Company details.
- Shareholders details.
- Payment of Stamp Duties on the amount of decrease.
- Special resolution at a general meeting to reduce share capital.
- Court order.
- Minutes of meeting.
- Authentication in a form authorised by a Director, Secretary or any authorised officer of the company.
Process
Steps involved in this compliance service
- The company must pass a special resolution (resolution approved by ¾ or 75% of members present and voting)
- Obtain the consent of its creditors to the reduction.
- Obtain a Court order confirming the reduction of the share capital.
- Fill in the company information.
- Fill in the details for the reduction of share capital.
FAQs
Frequently asked questions about this service
- Can a company operate below minimum share capital requirements?
Companies must maintain their minimum issued share capital at all times as required by law. Operating with less than the required minimum share capital can lead to compliance issues and potential legal complications. This ensures companies maintain adequate financial resources and protects both shareholders and creditors.