Reduction in Share Capital

From: NGN30,000

Legally Reduce Your Company’s Issued Share Capital with CAC

Whether restructuring, returning capital, or eliminating losses, reduce your company’s share capital with the Corporate Affairs Commission. SplashDict’s CAC-accredited chartered secretaries handle the entire process.

✔ Filing of Notice of Reduction in Share Capital with CAC.

✔ All CAC filing fees included—no extra charges.

✔ Receive an Updated CAC Status Report reflecting reduced share capital.

✔ Fast processing: 2-10 business days.

From: NGN30,000

Key Features of Reduction in Share Capital

Overview: A reduction in share capital enables a company to decrease its issued share capital, either to return value to shareholders or streamline its financial structure.
Capital Adjustment: Lowers the company’s issued share capital, directly altering shareholder equity by reducing the total capital base.
Flexible Purposes: Facilitates returning surplus capital, canceling unneeded or unpaid shares, simplifying the capital structure, or offsetting accumulated losses that block dividend payments.
Special Resolution: Requires a 75% majority vote at a general meeting (AGM/EGM) to authorize the reduction, ensuring shareholder approval.
Court Confirmation: Mandates a Federal High Court order for certain reductions (e.g., creditor-impacting cases), validating the process and protecting stakeholders.
Share Structure Impact: Modifies the nominal value or number of circulating shares, potentially affecting shareholder equity, voting rights, and ownership proportions.
CAC Filing Deadline: This must be filed with the Corporate Affairs Commission (CAC) within 15 days of board resolution or court approval to ensure timely compliance.

Requirements for Filing Reduction in Share Capital with CAC

Company Details: Provide full company name, registration number, and nature of business.
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.
Updated Annual Returns: Ensure all annual returns are filed and current prior to submission.

Get Started

Benefits of Filing Reduction in Share Capital

Financial Flexibility: Returns excess capital to shareholders or frees funds for dividends, buybacks, or other corporate needs.
Simplified Structure: Streamlines capital by eliminating unissued or surplus shares, enhancing efficiency.
Loss Mitigation: Cancels capital tied to losses, enabling dividend payments and financial recovery.
Operational Continuity: Maintains company status with updated, legally recognized records.

Company Post-Incorporation

File Reduction in Share Capital with CAC

Here's how SplashDict's CAC-accredited Chartered Secretaries can assist you:

Reduction Filing: We file your Notice of Reduction in Share Capital with the Corporate Affairs Commission (CAC) on your behalf.
Documentation: We prepare and manage all required filing documents.
Transparent Pricing: All CAC filing fees are included—no hidden charges.
Quick Turnaround: Receive an Updated CAC Status Report within 2-10 business days post-court approval.
Continuous Support: We assist with future compliance and statutory needs.