COMPANIES ACT - 1963 (ACT 179)

    Section - 28 - Minimum Capital

    (1) A company limited by shares shall not transact any business, exercise any borrowing powers or incur any debt except such as shall be incidental to its incorporation or to obtaining subscriptions to or payment for its shares until-

    (a) there has been paid to it for the issue of its shares consideration to the value of at least-

    (i) twenty million cedis of which at least five million cedis shall be paid in cash within section 45 of this Code in respect of a public company; or

    (ii) five million cedis of which at least one million cedis shall be paid in cash within the meaning of section 45 of this Code in respect of a private company". [As substituted by the Companies Code (Amendment) Act, 1997 (Act 531) s.1].

    (b) the company has delivered to the Registrar for registration a declaration in the prescribed form verifying that such payments have been received.

    (2) An existing company limited by shares shall not continue after the expiration of six months from the commencement of this Code to transact any business, exercise any borrowing powers, or incur any indebtedness unless,

    (a) prior to the expiration of the six months and whether before or after the commencement of this Code, there shall have been paid to it for the issue of its shares consideration to the value of at least five hundred pounds of which at least one hundred pounds shall have been paid in cash within the meaning of section 45 of this Code; and

    (b) the company has delivered to the Registrar for registration a declaration in the prescribed form verifying that such payments have been received.

    (3) For the purposes of this section any value attributed to the goodwill of a business or to services rendered or to be rendered to the company shall not be regarded as valuable consideration for the issue of shares.

    (4) The declarations referred to in subsections (1) and (2) of this section shall be signed by all the directors and by the secretary of the company.