Hi,
Without checkly too carefully . I have realised I have set up a company with 100 shares, capital £10,000 rather than 100 @ £100. What's the quickest way of correcting this? I was going to leave it but I realised parent co hasn't the cash and it means a lot of interco netting off but If it means that rather than organising a directors meeting to correct it....
Thanks in advance
Replies (9)
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Statement of solvency - reduction in capital
See:
http://www.companylawsolutions.co.uk/shares_capital_reduction.shtml#stat
Couple of options available to you are:
a) If you think your intention was to create 100 shares x £1, then sub-divide the capital (s.618) and after all the paperwork has been done file form SH02
b) Alternatively go for capital reduction (s.642) which involves much more paperwork
Form another company correctly
If the new company hasn't traded yet, change its name at Companies House (easy). After the new name is accepted, form another company with the original name (with the correct share capital (£1?)). Then apply to strike off the old company (also easy)
Well if the return of allotments says that 100 x £100 shares were issued at par, it is probably null and void because the company, from the sound of it, has no such shares to issue - only £1 shares.
So just file a corrected form.