CAC Releases Notice On Unissued Share Capital, Extends Date To 2022

The Corporate Affairs Commission (CAC) has issued a public
notice on existing Companies and the requirements of issued share
capital under the Companies and Allied Matters Act 2020.

According to the public notice all Existing Companies, Esteemed
Customers and the General Public are hereby informed that the
Minister of Industry, Trade and Investment has approved an
amendment to Regulation 13 of the Companies Regulation 2021
allowing an extension to the period complying with the requirements
of issued share capital under section 124 of the Companies and
Allied Matters Act 2020 (CAMA) by existing Companies with unissued
share capital op to 31^st December 2022.

Existing Companies with unissued share capital are advised to
take advantage of the extended period to comply with the
requirements of issued share capital under the Section.

According to the notice all customers are to note that, all
existing Companies are further advised that in line with the
definition of “share capital” in Section 868 CAMA as
“the issued share capital of a company at any given time”,
any share capital of a company that shall remain unissued after
31^st December 2022 shall not be recognized as forming
part of the share capital of the Company until the share capital of
the company is fully issued or reduced accordingly.

The General Public, all Existing Companies and Esteemed
Customers should note that any application filed in compliance with
Section 124, CAMA after the extended date shall attract the
applicable penalty prescribed under the Section and the Companies
Regulations 2021.

The Corporate Affairs Commission (CAC) has issued a public
notice on existing Companies and the requirements of issued share
capital under the Companies and Allied Matters Act 2020.

According to the public notice all Existing Companies, Esteemed
Customers and the General Public are hereby informed that the
Minister of Industry, Trade and Investment has approved an
amendment to Regulation 13 of the Companies Regulation 2021
allowing an extension to the period complying with the requirements
of issued share capital under section 124 of the Companies and
Allied Matters Act 2020 (CAMA) by existing Companies with unissued
share capital op to 31^st December 2022.

Existing Companies with unissued share capital are advised to
take advantage of the extended period to comply with the
requirements of issued share capital under the Section.

According to the notice all customers are to note that, all
existing Companies are further advised that in line with the
definition of “share capital” in Section 868 CAMA as
“the issued share capital of a company at any given time”,
any share capital of a company that shall remain unissued after
31^st December 2022 shall not be recognized as forming
part of the share capital of the Company until the share capital of
the company is fully issued or reduced accordingly.

The General Public, all Existing Companies and Esteemed
Customers should note that any application filed in compliance with
Section 124, CAMA after the extended date shall attract the
applicable penalty prescribed under the Section and the Companies
Regulations 2021.