Good afternoon coach and the community. Please I'm doing a company registration with one individual shareholder and a corporate shareholder. The corporate shareholder has 51% of the allocated shares. I keep receiving this query below:
Note That Corporate Shareholders With 5% Or More Of The Allotted Shares Must Be Represented By A Natural Person With Details Of The Corporate Shareholder In Bracket.
I am confused on what to do. I've tried several ways, but it's still being queried
Victory Ugbome, The query is simply telling you that the corporate shareholder itself cannot stand alone as the shareholder representation on the allotment page.
Since the corporate shareholder owns more than 5%, CAC wants you to attach a natural person to represent that company.
What you should do is:
On the shareholder/allotment section, instead of putting only the corporate company name, insert the name of a director or representative of that company first.
Then in bracket, put the corporate shareholder name.
Example:
John Doe (representing XYZ Limited)
Then allocate the 51% shares to that representation.
Also ensure:
- The corporate shareholder company is active on CAC
- The representative’s details match properly
That should clear the query.
Here is the confusion. I have filled in the natural person's part already and submitted. It was queried again.
Should I fill in the individual shareholder part while attaching the details of the corporate shareholder there?
Victory Ugbome, this is okay. I think the issue is from the PSC section. Can, I have a screenshoot of what is there at the moment.
Coach Franklin I didn't add the corporate shareholder as a PSC
Only the individual shareholder is a PSC
Victory Ugbome, that's where the issue is. You simply add the neutral person to become the PSC and a lot the 51% to him or her.
This will solve the issue.