Reduction of share capital

Reduction of share capital

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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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By DMGbus
29th Apr 2015 13:56

Statement of solvency - reduction in capital

See:

http://www.companylawsolutions.co.uk/shares_capital_reduction.shtml#stat

 

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By johngroganjga
29th Apr 2015 13:56

Not sure what you mean. On my calculator 100 x £100 is £10,000.

What is the problem?

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Replying to SteveHa:
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By MDK45
29th Apr 2015 19:26

You're absolutely right. 100 x £1 it should be.

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By User deleted
29th Apr 2015 14:41

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

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By Briar
29th Apr 2015 15:16

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)

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By TerryD
29th Apr 2015 16:28

Or you could simply file a Form RP04 (second filing) to correct the original SH01.

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By MDK45
29th Apr 2015 19:28

I'll look into the options above, thank you for your responses.

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By johngroganjga
29th Apr 2015 20:29

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.

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By MDK45
13th Sep 2015 19:02

Indeed. As simple as filing an ameded return.

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