Legal Question in Business Law in Nigeria

Top of the day Sir,

I am very interested in you clarifying an issue for me.

I did set up a company and registered 1,000,000 shares. 4 of us shared the shares at N1 per share remain 210,500 shares to be sold.

We are setting up a factory and have invested our funds and waited for 7 months. Now the factory is set and equipment installed. We still need more funds to complete and start up operation. It was suggested to sell the remaining shares at N1.50. Is this possible?

The simple question is "can we increase the price of our shares even when operation have not started"?

Awaiting your response Sir.

Thanks in anticipation.

Tosin Sotande

tosin.sotande@gmail.com

Asked on 4/04/13, 10:24 am

1 Answer from Attorneys

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Yes, it is possible. The Companies and Allied Matters Act refers to such an increase as the "issue of shares at a premium" and this can be done at any time though subject to the provision of your company's articles of association. chukwuyere.izuogu@yahoo.com.

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4/05/13, 2:14 am

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