Can a company buy its own shares?
By virtue of Sec 160 Companies and Allied Matters Act 2004, A company is not allowed to buy shares issued by it unless in the following circumstances or events; If the company is settling or compromising a...
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Forfeiture of shares based on refusal of members to respond to call on shares
Where a member fails to pay any call or installment of a call on the day appointed for payment, the directors are required to serve a notice on such member requesting the payment and the accrued interest. If...
Call on and payment for shares
The directors are empowered by Sec 133 CAMA to make call on shares in respect of any monies unpaid on the shares of the members. A call on shares is made when; A resolution shall be passed by the directors...
Issue of shares at a discount
A company has the power to issue shares to its subscribers up to the total number authorized in the memorandum. Issuing of shares at a discount is made possible by virtue of sec 121 Company and Allied...
How to change my company from a public company to a private company in Nigeria
First, we will differentiate a private company from a public company. A limited liability company, also referred to as a private company limited by shares is restricted from offering its shares to the...
Can I convert my shares into stock?
What is the difference between a share and a stock? A Share is the smallest unit into which the company’s capital is divided, representing the ownership of the shareholders in the company. A Stock on the...
Does payment for shares have to be in cash?
Subject to the provisions of the CAMA, the shares of a company and any premium on them shall be paid up in cash, but where the articles so permit, shares can be paid for by a valuable consideration other...
Issuing company shares at a premium
When shares are issued at a price higher than the face value (also called par value or nominal value), it is called an issue of shares at a premium. Where a company issues shares at a premium, whether for...
How do companies allot shares?
A person becomes a shareholder of a Company either by shares being allotted, transferred or transmitted to him/her. What is allotment? A company may allot shares when it is first set up or at any time during...
Certificate of good standing
A Certificate of Good Standing, also called a “Certificate of Existence” or “Certificate of Authorization,” is a state-issued document that shows that your company has been duly incorporated, is authorized...
Who is a shareholder?
A shareholder is an individual or institution (including a corporation) that legally owns one or more shares of stock in a public or private corporation. Shareholders may be referred to as members of a...
How to form a group company.
The use of the word ‘Group’ in the name of a company is restricted by the law and as such, consent must be sought and obtained from the Registrar-General of the Corporate Affairs Commission (CAC) before the...
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