HOW TO INCREASE YOUR EXISTING COMPANY SHARE CAPITAL IN NIGERIA


Your company must be in existence before you can increase its share capital.
For a new company, all you need is to apply for the number of shares you want in your new application.

For old companies, you will Increase your Share Capital as follows:

Any Company limited by share capital or limited by guarantee and having share capital may alter its authorized share capital by increasing its share capital once the following conditions are met.


Step 1: Verification of authority from the Articles of Association
Section 63 of the Companies Act, provides that a Company may increase its share capital if so authorized/permitted under the Articles of Association, hence this is a first step in increasing share capital.
Step 2: Passing of a Resolution
Secondly, the powers authorized under the Articles of Association and conferred by the Companies Act are only exercised by the General Meeting. As such, a Resolution (special or Ordinary) of the members and shareholders of the company needs to be passed.
Step 3: Preparation of Notice of Increase of Share Capital and payment of Stamp Duty
Once a Resolution is passed, a Notice of Increase of Share Capital (Form 204) is prepared to be filed with the Registrar. Thereafter, stamp duty is paid on the additional share capital.
Step 4: Filing of a Notice of Increase of Share Capital
The Registrar is notified of increase of share capital by filing Notice of Increase of Share Capital (Form 204) within thirty (30) days of passing of such Resolution for registration as specified under section 65 of the Companies Act.
A company may thereafter allot the shares to the interested persons by filing Return of Allotment.
5) Payment of filing fees.
6) Evidence of compliance with S.636 where applicable.

Comments

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