Wednesday, August 19, 2020 / 09:32 AM /By
NAICOM / Header Image Credit: NAICOM
1.1 This Circular is in furtherance to our earlier Circulars referenced NAICOM/DPR/CIR/25/2019 dated May 20, 2019; July 23, 2019 and December 30, 2019 respectively on the above subject matter.
2. Minimum Paid - Up Share Capital
2.1 The Commission hereby reiterates that the Minimum Paid-up Share Capital shall be through any or a combination of the following:
a. Existing paid-up share capital;
b. Cash payment for new shares;
c. Retained earnings - capitalisation of undistributed profits;
d. Payment in kind (such as properties, T-Bills, Shares, Bonds, etc.) for new shares issued -which must be converted to cash not later than three (3) months to the recapitalisation deadline; and
e. Share premium.
2.2 The components of 2.1(b - e) are to be converted to Paid-up Share Capital in compliance with the recapitalisation exercise and applicable laws and regulations in Nigeria.
2.3 For Private Placement, appropriate clarification have been obtained from the relevant regulatory agency to the effect that insurance and reinsurance companies may offer more than 30% of the existing issued and fully paid shares.
3. Submission of Recapitalisation Progress Report shall now be monthly. The report shall be submitted not later than five (5) working days after the end of each month, effective end of August, 2020.
4. Timeline of the activities for the first phase of the recapitalisation exercise is attached below: