Get Statement Of Increase Of Nominal Capital Kenya

The Nominal capital of a company in Kenya, therefore refers to the amount of capital, in shares, a company through its constitution or Articles is authorized have and issue to its shareholders.

Nominal capital is the aggregate par value of those shares that have been issued by a corporation. Since par value is typically set at $0.01 per share, the total nominal value of a company is quite low. In cases where there is no par value at all, a firm has no nominal capital. June 26, 2022 / Steven Bragg/

Sub-division or consolidation of share capital A sub-division increases the number of shares that a company has in issue. Consolidation is a process by which a company may change the structure of its share capital by amalgamating some or all of its issued shares into shares of a higher nominal value.

Authorized capital, also called nominal capital, as stated in the Memorandum of Association (MOA) is the amount of share capital that a company can raise at any time by issuing new shares. A company cannot issue shares of the value more than the authorized capital.

A company may, unless its articles provide otherwise, by special resolution, alter its share capital by increasing or reducing its share capital by new shares of such an amount as it thinks expedient. A reduction in share capital must be sanctioned by a court order.

The authorised capital of ₹ 16,00,000 of XYZ Ltd. is divide into 1,60,000 Equity Shares of ₹ 10 each. Out of these shares , 80,000 Equity Shares were issued at par to public for subscription . The full nominal value is payable on application . All the shares were subscribed by the public and total amount was paid for .

When registering a limited company in Kenya, the minimum nominal share capital is Ksh. 100,000 (1,000 shares). Legally the law (The Company Act) allows a minimum of 1,000 shares with a nominal share capital of Ksh.

Upon completion of the process Form 204, Notice of Increase of Nominal capital is filled out to Notify the Registrar of the proposed resolution and changes to the Nominal capital of the company. The Notification has to be filed within thirty days of passing of such Resolution.