63C. Notice of increase in total amount paid up on shares

Question 1

63C. Notice of increase in total amount paid up on shares

Answer 1

General overview
[63C.01] This section provides for a reporting obligation when the company receives an increase in the total paid-up capital on shares which were previously issued as partly paid or unpaid shares. A notice in the prescribed form has to be lodged with ACRA within 14 days after receipt of such payment.

Question 2

Increase in paid-up capital

Answer 2

[63C.02] The company has to lodge a notice with the registrar of any increase in the total amount of paid-up capital on any partly paid or unpaid share: s 63C. This will ensure that the amount of the capital reflected in the financials is consistent with the statutory records.

Question 3

According to constitution

Answer 3

[63C.03] A company may alter or increase its capital within the confines of its articles: Re Doecham Gloves Ltd [1913] 1 Ch 226, Ch D ; Re Palace Hotel Ltd [1912] 2 Ch 438 not followed.

Question 4

Financial reporting standards

Answer 4

[63C.04] In accordance with current reporting standards under FRS 102, equity-settled options granted by a company are recorded as an employee expense in the profit and loss statement and a credit to the reserve account. When the option is exercised and the shares are issued, the reserve will be accredited to the share premium account to become part of the share capital. FRS 39 treats interest-free loans between a parent and subsidiary as part of the share capital. Redeemable preference shares are classified as a liability rather than share capital under FRS 32 (note: the Report of the Steering Committee for the Review of the Companies Act, April 2011, Chapter 5, paras 139–142).