Reduction in Share Capital

Reduction in Share Capital

NGN30,000

Reduce a Company’s Issued Share Capital with CAC

Whether you’re restructuring, returning surplus capital, or eliminating accumulated losses to strengthen your balance sheet, streamlining your financial structure, or ensuring the issued shares accurately reflect the company’s true value or ownership proportions, this service helps you legally reduce your company’s share capital with the Corporate Affairs Commission (CAC).

  • *Company Type:

Service Fee (All inclusive):

NGN30,000

File Reduction in Company’s Share Capital in Nigeria

Here’s how SplashDict's CAC-accredited experts assist you:

  • Documentation & Filing: We prepare the necessary documents and resolutions, and file the notice of Reduction in Share Capital with the CAC.

  • Official Document: Receive a Certificate of Issued Share Capital, updated CAC Status Report, and updated Memorandum and Articles of Association (MEMART) confirming the reduction in your company's share capital.

  • Transparent Pricing: Covers CAC fees, FIRS' stamp duty fees, and our service fee with no hidden charges.

  • Fast Processing: Filing is completed within 3 to 7 working days, depending on CAC approval.

  • Ongoing Support: Get expert help from our Chartered Secretary and compliance team for all regulatory needs.

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Why File Reduction in Share Capital with CAC?

Filing a reduction in share capital with the Corporate Affairs Commission (CAC) ensures your company’s capital structure aligns with its true financial and operational position. It allows a business to return surplus capital to shareholders, eliminate accumulated losses, meet regulatory requirements, or simplify ownership without requiring individual consent from every shareholder.

This process may also involve repurchasing the company’s own shares, consolidating share classes, or removing unpaid capital no longer needed. Proper filing keeps your company compliant, ensures transparency in public records, and provides official documentation for investors, regulators, and stakeholders.

Depending on the nature of the reduction, it may require shareholder approval by special resolution (75% majority) and, in certain cases, confirmation by the Federal High Court to safeguard creditor and stakeholder interests.

  • To Eliminate Losses: A company can use a reduction to offset accumulated losses on its balance sheet. This helps restore a healthier financial position and enables the company to pay future dividends.

  • To Return Surplus Capital: When a company has more capital than it needs for its current operations, it can reduce its share capital to return this excess amount to its shareholders, thereby increasing shareholder value.

  • To Simplify Capital Structure: This process allows a company to streamline a complex ownership structure, such as by consolidating different share classes or redeeming preference shares.

  • To Comply with Regulations: A reduction may be necessary to meet specific regulatory requirements, particularly in industries with complex capital rules.

  • Capital Adjustment: Reduce issued share capital to directly alter shareholder equity and ownership proportions.

CAC Post-Incorporation Services

Requirements for Filing Reduction in Share Capital with CAC

  • Company Details: Provide the company’s name and CAC registration number.

  • Special Resolution: Submit the resolution passed at a general meeting approving the reduction, signed by directors or authorized officers.

  • Court Order: Provide a Certified True Copy (CTC) of the Federal High Court order sanctioning the reduction.

  • Court-Approved Minutes: Include minutes of the company meeting, approved by the court, detailing: Amount of the reduced share capital, Number of shares into which it is divided, Nominal value of each share, Amount (if any) deemed paid on each share at registration date.

  • Share Capital Details: Provide a breakdown of the reduction, including - Old Issued Share Capital, New Issued Share Capital (Must be less than the previous amount), Difference in Share Capital, and New Issued Share Capital in Words.

  • Equity (Ordinary) Share Details: Specify newly issued Equity Share Capital, newly issued Equity Share in Words, Number of Share Division, and Price Per Share.

  • Preference Share Details (if applicable): Specify for preference shares - New Issued Preference Share Capital, New Issued Preference Share in Words, Number of Share Division.

  • Annual Returns: It is mandatory that all of your company’s annual returns are fully paid and up to date before submitting this application.

  • Authorization: The application must be signed by the company's directors, secretary, or an authorized representative.

Reduce Share Capital

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