Share capital under CAMA 2020: sections 124 to 137
Chapter 7 deals with the share capital of a company: the minimum, consolidating and subdividing shares, increases, reductions, and the directors’ duty when a public company loses much of its capital.
Chapter 7 of Part B has 14 sections. Every section is listed below with its title.
Guides in this chapter
Key rules in this chapter
- An increase through allotment takes effect only if at least 25% of the capital, including the increase, is paid up (section 128).
- A reduction needs a special resolution and the court’s confirmation (sections 131 to 133).
- Directors of a public company must call a meeting within 30 days of learning that net assets are half or less of called-up capital (section 137).
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Source: the Companies and Allied Matters Act 2020 as published in the Official Gazette.