On incorporation the sole trader set up a company with an incorrect share capital of £500,000 and allotted all 1000 x £500 ordinary shares to himself. This was over a year ago and the first annual return is now a month overdue. No money for the shares has been paid. As far as I can see this information will need to be declared on the return as per the original Articles and Memorandum to comply with the made up date (there were no changes during the year).
Secondly, to change the structure to a typical one man private company with him owning one £1 share I propose to subdivide the 1000 shares to 500,000 making them £1 each and then surrender 999 shares by agreement. I believe this will require ordinary written resolutions under CA2006, amending of share certificates, etc and a completed form 122 to Companies House accompanied by a statement of capital.
It is probably unnecessary to change the authorised share capital, even though it is rather high for a small company, as this appears to a be a more complex procedure.
Any comments would be welcome regarding procedures and pitfalls.