Either the directors or shareholders of a company may increase or decrease the number of authorised shares for a particular share class by amending the Memorandum of Incorporation (“MOI”) and filing a COR15.2 with the CIPC.
To reduce authorised shares in InfoDocs, simply follow the easy steps below.
Step 1: In the company profile, go to the Share Classes tab and under Actions, click on Share Reorganisation
Step 2: Next, select the first option to Change Authorised Shares and click Next.
Step 3: Select the Share Class, the Date of the change, and change the total Authorised Shares for this share class to the desired amount. There is an added option to choose between “As Resolved by Directors” or “As Resolved by Shareholders”, select the option that applies and click Save when you are done.
Step 4: Download and save the generated Ordinary Resolution. If you don’t immediately download it, you can find it again in the Template Library under the Documents tab and with the PDF templates.
In order to finalise this transaction, you will need to submit the changes to CIPC and prepare signed copies of the following documents:
- Ordinary Resolution (generated by InfoDocs upon completion of the transaction), certified and signed
- A certified ID copy of the signatory
- A certified ID copy of the applicant
- A power of attorney if the change was effected by a representative
- A board report in terms of Reg 31(7) of the Companies Act
For more information, see the article written by the CIPC on the subject: