Section 128 CAMA 2020

Section 128 Companies and Allied Matters Act is about Increase of issued capital on increase of shares. It is under Chapter 7 (Share Capital) of PART B (Incorporation of Companies and Incidental Matters) of the Act.

Increase of issued capital on increase of shares

(1) Where a company allots new shares, thereby increasing its issued share capital, the increase shall not take effect unless—
(a) at least 25% of the share capital including the increase has been paid up ; and
(b) the directors have delivered to the Commission a statutory declaration verifying that fact.

(2) Where a company fails to comply with the applicable subsection, it shall be liable to such fine as the Commission may prescribe by regulation for every day during which the default continues.