DCA: "Called up share capital not paid"

[LeoW]

Hello,

I'm attempting to file my Dormant Company Accounts for a company which has never traded. The company was set up with £100 of share capital (this is where I get a little out of my depth!) allocated in £1 shares to two directors.

There is no money in the company - the "£100" doesn't really exist, if you see what I mean. I understand that I may well have gone the wrong way about the shares and that I should have "put" the money from shareholders into the company but I'm really not sure.


Now I'm filing my DCA, and I'm confused by the box for "Called up Share Capital not Paid". Should this "£100" be in the "Cash at bank and in hand" box or in the Called up capital box?

I'm filing this in advance of striking the company off, so if anyone can offer some handy tips on that then I'd appreciate it!

Thanks a lot, this forum and its members deserves a lot of credit for the help they give out!

Leo

 

[Alpha]

Called up share capital not paid £100

Authorised share capital ? shares at £1 £x

Issued Share capital 100 shares @ £1 per share £100


are the entries that you require

 

[LeoW]

Ok, next problem!

I'm now having to provide info the "First Year Accounts" section which states:



During the first year the company allotted (SPACE) ordinary shares with an aggregate nominal value of £ (SPACE) the consideration received by the company was £ (SPACE)


Firstly, I don't know what consideration is and it doesn't seem to provide any useful information, secondly, would this include those 100 shares which were allocated right at the company's formation when I set it up?

Thanks again,


Leo

 

[Jaydee]

During the first year the company allotted 100 ordinary shares with an aggregate nominal value of £100 the consideration received by the company was £100

The unpaid share capital is the consideration.

 

[Nuventure]

Ok, next problem!

I'm now having to provide info the "First Year Accounts" section which states:



During the first year the company allotted (SPACE) ordinary shares with an aggregate nominal value of £ (SPACE) the consideration received by the company was £ (SPACE)


Firstly, I don't know what consideration is and it doesn't seem to provide any useful information, secondly, would this include those 100 shares which were allocated right at the company's formation when I set it up?

Thanks again,


Leo

Hi Leo, fill it out as:

During the first year the company allotted 100 ordinary shares with an aggregate nominal value of £100 the consideration received by the company was £0

Because you have not paid for the shares you must state this in the statement along with the shares nominal worth and how many.

Nuventure

 

[LeoW]

Anyone able to shed some light over who has got the consideration value correct?

 

[Nuventure]

During the first year the company allotted 100 ordinary shares with an aggregate nominal value of £100 the consideration received by the company was £100

The unpaid share capital is the consideration.

Jaydee, you state that the unpaid share capital is the consideration. Actually, the consideration is the amount received for issued shares. So if they have not been paid for then this amount will be £0 and not £100.

 

[Jaydee]

Nuventure - we beg to differ!

"consideration" by definition does not need to be money - the top half of the balance sheet now shows a debtor - the called up share capital unpaid of £100 - there was no debtor before the shares were subscribed for, and hence the debtor is the considersation for the shares.

The double entry will be Dr Share capital unpaid, Cr Share capital.

Furthermore, there must be consideration otherwise in common law the contract is unenforceable. If the contract was unenforceable, then the caompany would have no issued shares.

To the OP, if you are still not convinced, put the £100 onto the form and I bet you a fiver that Companies House don't reject it!

 

[Alpha]

Nuventure - we beg to differ!

"consideration" by definition does not need to be money - the top half of the balance sheet now shows a debtor - the called up share capital unpaid of £100 - there was no debtor before the shares were subscribed for, and hence the debtor is the considersation for the shares.

The double entry will be Dr Share capital unpaid, Cr Share capital.

Furthermore, there must be consideration otherwise in common law the contract is unenforceable. If the contract was unenforceable, then the caompany would have no issued shares.

To the OP, if you are still not convinced, put the £100 onto the form and I bet you a fiver that Companies House don't reject it!

I would agree with Jaydee re the consideration however

Put either on the form and I bet Jaydee £10 that they don't reject it

 

[Nuventure]

I would agree with Jaydee re the consideration however

Put either on the form and I bet Jaydee £10 that they don't reject it

Yes I agree with that, they would accept either £0 or £100 in that space.

 

[miketombs]

Ask an actuary - they'll tell you to put in £50.