Following a consultation by the Department for Business, Innovation and Skills (BIS), the Government is considering simplifying the financial information requirements for statements of capital. A statement of capital is a snapshot of a company's share capital, to be filed at Companies House at various points including the formation of a new company, the alteration of a company's share capital and with a company's annual return. The information currently required includes:
- the total number of shares of the company;
- the aggregate nominal value of the shares;
- the total number of shares in each class;
- the prescribed particulars of the rights attached to each class of share; and
- the amount paid up and the amount unpaid (if any) on the shares in each class.
Many companies have reported providing this information to be costly and burdensome, particularly the requirement to provide details of the prescribed particulars of different classes of share. Additional proposals include removing the requirement to specify the amount paid up and unpaid on each class of share.
The legislation does not currently allow the requirements to be altered in relation to all 15 instances where statements of capital are required. The Government therefore intends to introduce a suitable means of doing so. In the meanwhile, BIS has proposed that from October 2011 the annual return statement of capital should only include:
- the total number of shares of the company and their aggregate nominal value; and
- the total number of shares of each class and their aggregate nominal value.
Accordingly, there will be a consultation on draft regulations early this year.