Reminder: Compliance With Regulation 13 Of Companies Regulation – On Issuance/Cancellation Of Unissued Shares

By virtue of Regulation 13 of the Companies Regulations 2021 (the “Regulations”) issued pursuant to the Companies and Allied Matters Act 2020 (“CAMA”) and a public notice issued by Corporate Affairs Commission (CAC) dated April 16, 2021 (the “Notice”), any company which, at the commencement of CAMA, has unissued shares in its capital, has to fully issue or cancel such shares no later than December 31, 2022.

Unissued shares refer to shares that have been authorized for use in the company but have not been sold (issued or allotted) to any shareholder.

All Existing Companies are advised that any share capital of a Company that shall remain unissued after 31st December 2022 shall not be recognised as forming part of the Company’s share capital.

Thus, please be reminded to issue any unissued shares before the stipulated deadline [ December 31, 2022 ]. Failure to deal with such unissued shares by the above date renders a company liable to penalty as prescribed under the Regulations.