• 1 Marks

BMF – Nov 2021 – L1 – SA – Q9 – The Business Environment

Question on share capital requirements for private companies according to CAMA 2020.

In accordance with the provisions of the Companies and Allied Matters Acts (CAMA) 2020, which of the following is TRUE of a private company?

A. 15% of the issued share capital must be paid up at all times
B. 25% of the issued share capital must be paid up at all times
C. 35% of the issued share capital must be paid up at all times
D. 45% of the issued share capital must be paid up at all times
E. 55% of the issued share capital must be paid up at all times

B. 25% of the issued share capital must be paid up at all times

Explanation:
The correct answer is B because according to CAMA 2020, private companies in Nigeria are required to ensure that 25% of their issued share capital is paid up at all times. This provision helps regulate the financial structure of private companies and ensures they maintain a minimum level of solvency and capital adequacy.

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