Procedure for share transfer and share surrender in Nigeria
Before any company can be incorporated it is required by the law to have an authorised share capital which is divided among the members according to their contribution in the company. These shares can either be ordinary or preferred shares.
A subscriber in the Articles of Association or a shareholder can transfer their shares in whole or in part to another individual or company or can surrender the shares back to the company.
The transfer of shares to another individual or company is called share transfer. A share transfer is done internally through an instrument of transfer. It is however, deemed to be properly transferred when the name of the transferee is reflected in the company’s register of members in regards to shares upon an application by the transferor. Electronic instrument of share transfer is acceptable. A share transfer must be executed by both parties either by themselves or on their behalf. Where a share transfer is in writing it can be an acceptable means of transfer provided it is accepted by the director.
Share surrender on the other hand, is the surrender of shares back to the company by an individual or corporate body who subscribed for shares in the company. The first step in share surrender is for the shareholder to write a letter to the company stating the amount surrendered. Also, a special resolution by the company would be prepared to reflect the shareholder’s intention to surrender the shares back to the company and the number of shares so surrendered, it would also reflect the new share structure of the company. Finally, the application for share surrender would be filed with the Corporate Affairs Commission (CAC).
Lastly, as an unspoken rule, before any change can be effected for a company at the CAC, the company must have filed up to date Annual returns.
Team 618 Bees
618 Bees can quickly and easily help you file share transfers, surrenders and transmissions for your company in Nigeria. Log on to our website www.618bees.com or email firstname.lastname@example.org, or give us a call on +2349017190079. 618 Bees will complete your application with the Corporate Affairs Commission (CAC).
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