Company Capital is, without a shadow of doubt, the lifeblood of a company. Whether viewed in the light of the subjective approach, (capital as residing in physical goods which can produce other goods and services), or objective approach (the monetary sum at the investors’ disposal), one thing remains true. Without capital, companies cannot function. However, a company may alter its capital for different reasons, some of them include: to suit the needs of the investors, to write off the deficit and fund current liabilities, to maintain a balance between preference and equity shares, and balance out the financial plan, and even to meet legal requirements. In altering their capital, companies must abide by the hallowed provisions set out in the Companies and Allied Matters Act (CAMA) 2020. To this end, this paper gives a detailed explanation of the meaning, nature, and legal requirements for the alteration of company capital.
Inhaltsverzeichnis (Table of Contents)
- 1.0. MEANING OF ALTERATION OF COMPANY CAPITAL.
- 2.0. NATURE OF ALTERATION OF COMPANY CAPITAL.
- 3.0. LEGAL REQUIREMENTS FOR ALTERING COMPANY CAPITAL..
- 4.0. CONCLUSION
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to provide a detailed explanation of the meaning, nature, and legal requirements for the alteration of company capital in Nigeria. It examines the various forms of capital alteration, including reconstruction, increase, and reduction, within the framework of the Companies and Allied Matters Act (CAMA) 2020.
- Meaning of Alteration of Company Capital
- Nature of Alteration of Company Capital
- Legal Requirements for Altering Company Capital
- Impact of Capital Alteration on Stakeholders
- Significance of CAMA 2020 in Regulating Capital Alteration
Zusammenfassung der Kapitel (Chapter Summaries)
- 1.0. MEANING OF ALTERATION OF COMPANY CAPITAL. This section explores the concept of alteration of company capital, outlining its various forms, such as reconstruction, increase, and reduction. It clarifies that altering share capital involves changes to the company's existing capital structure and requires amendments to its charter, bylaws, and registration with the relevant regulatory authority.
- 2.0. NATURE OF ALTERATION OF COMPANY CAPITAL. This section delves into the specific nature of different capital alteration forms. It explains how consolidation and subdivision of shares affect the company's capital structure, analyzing their impact on stakeholders. It further discusses the consequences of increasing and reducing company capital, highlighting the different perspectives of shareholders and creditors.
Schlüsselwörter (Keywords)
Key terms and concepts related to the alteration of company capital in Nigeria include: company capital, share capital, reconstruction, consolidation, subdivision, increase, reduction, Companies and Allied Matters Act (CAMA) 2020, stakeholders, shareholders, creditors, legal requirements, regulatory authority.
- Quote paper
- Anonymous,, 2021, Alteration of Company Capital in Nigeria, Munich, GRIN Verlag, https://www.grin.com/document/1064722
