Reduction in Share Capital

NGN30,000.00

File Notice of Reduction in Share Capital with CAC

Reduce your company’s issued share capital with confidence through the Corporate Affairs Commission (CAC). Whether restructuring, returning capital, or eliminating losses, let SplashDict’s CAC-accredited experts handle the process seamlessly for you.

Filing of Notice of Reduction in Share Capital with CAC.
All CAC filing fees included—no extra charges.
Receive Updated CAC Status Report reflecting the reduced share capital.
Quick Turnaround: Processing time of 2 to 10 business days post-court approval.

NGN30,000.00

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.

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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

Obtain CTC of Company Certificate of Incorporation in Nigeria

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

Reduction Filing: We file your notice of reduction in share capital with CAC on your behalf.
Documentation: We handle all Filing documents.
Transparent Pricing: All CAC filing fees are included—no extra charges.
Quick Turnaround: Receive updated CAC Company Status report within 2 to 10 business days.
Continuous Support: We assist with future compliance and statutory needs.