NOTICE OF ALTERATION IN CAPITAL
A company may, unless its articles provide otherwise, by special resolution, alter its share capital by increasing or reducing its share capital by new shares of such an amount as it thinks expedient. A reduction in share capital must be sanctioned by a court order. A Notice of Alteration in Capital (Form 29) and a resolution must be filed within one month from the date when the resolution for alteration in capital was passed.
The Registration fee for Notice of Alteration in Capital is 2.5% of every K200 or part thereof of the increased capital plus K60,000. If the company is increasing its capital from below K5,000,000, a late filing fee of K145,000 is added to the relevant Registration fee. Upon payment of the relevant filing fee, the Registrar of Companies issues a Replacement Certificate of Share Capital worded to meet the circumstances of the case.
The Minimum Authorized Share Capital for various companies is as follows:-
|1.||Private Company -Minimum Nominal Capital||K5, 000, 000|
|2.||Public Company - Minimum Capital||K50, 000, 000|
|3.||Bureau de Change - Minimum Capital||K250, 000, 000|
|4.||Financial Institution or Insurance Company||K500,000,000|
|5.||Bank - Nominal Capital||K1,000,000,000|
Accordingly, any of the above companies with a nominal capital below the prescribed minimum is required to increase its capital pursuant to Statutory Instrument No. 29 of 2005.