On 23 November 2009, the Department for Business, Innovation and Skills (BIS) published a consultation paper on the information required to be disclosed in statements of capital.
The consultation follows concerns regarding the practical problems encountered by some companies in completing statements of capital (see our October 2009 E-Bulletin article: Companies Act 2006: Statements of capital and publication of ICSA guidance paper).
The BIS consultation paper sets out the practical difficulties encountered by some companies under the current rules and suggests how these difficulties might be dealt with going forward.
BIS has proposed that (as a minimum) all companies be required to disclose the following in statements of capital (both for each class of share and in total): (i) the number of shares and (ii) the amount not paid up on the shares. Public companies will also need to provide, both for each class of share and in total, the total nominal value paid up on shares.
Depending on the responses to the consultation, BIS proposes to extend these "minimum" requirements such that all companies would be required to disclose the following in statements of capital (both for each class of share and in total): (i) the number of shares, (ii) the amount not paid up on the shares, (iii) the total nominal value paid up on the shares and (iv) the total nominal value of shares (paid up or not). In addition, it is proposed that, as an aggregate figure for the whole company, the value of the share premium account be included.
Any comments or views should be submitted to BIS by 11 January 2010. BIS plans to publish a response within six weeks of the closing date explaining how it intends to proceed.
View the BIS consultation paper (32 page pdf)