SALE AND TRANSFER OF SHARES OF PUBLIC LIMITED LIABILITY COMPANIES IN NIGERIA – PROCEDURES LEGAL AND ACCOUNTING IMPLICATION. A CASE STUDY OF NIGERIA STOCK EXCHANGE
SALE AND TRANSFER OF SHARES OF PUBLIC LIMITED LIABILITY COMPANIES IN NIGERIA – PROCEDURES LEGAL AND ACCOUNTING IMPLICATION.
A CASE STUDY OF NIGERIA STOCK EXCHANGE
This project reviews procedures, legal and accounting implication of public limited liability companies to the sale and Transfer of shares in Nigeria stock Exchange, it will list various problems facing sale and transfer of shares in Nigeria state exchange market.
Research hypothesis will be formulated for effective conduct and understanding due to declarative statement that relate generally or specially and do not vary from another.
Data will be used which made of some mathematical and statistical techniques some of the fact collected.
Analysis will base on chi- square and percentage which will be used to test the research hypothesis which consist of null hypothesis etc.
Requirement which will be fulfilled be interested parties for admission into the official list of exchange trader are listed.
Explanation will be made on Application which stresses standard format which is completed by issuing house stating the securities for which application is being made.
Generally I undertake writing this project to have on insight and through understanding of what it means to issue and transfer shares in public limited companies in Nigeria.
To understand the various activities of the stock exchange in the area of legal procedures in listing any particular security and of the same time to make appropriate recommendation to Nigeria stock exchange where necessary like in the area of capitalization on the public limited companies and restore the confidence of the interested parties.
CHAPTER ONE
1.1 Objective of study 2
Reference 9
CHAPTER TWO
2.1 Sale of shares/Debentures procedures 17
respect of sale of shares. 21
market/market for outstanding securities. 25
market (S.S.M) Historical Background . 30
of civil Administration. 49
Reference 51
CHAPTER THREE
3.1 Source of data 53
Reference 58
CHAPTER FOUR
4.1 Presentation 60
CHAPTER FIVE
Summary of findings, conclusion and recommendation 74
5.1. Summary findings 74
5.2 Conclusion 75
5.3 Recommendation 76
Bibliography 78
Questionnaire 80
CHAPTER ONE
Over the years, business have grown from sole proprietorship to partnership to private limited liability companies and now to public limited liability companies.
This revolution in business growth over the years has necessitated the need for long and permanent sources of financing business expansions and other projects. The age has passed when business used to be financed adequately with private savings or other short-term funds. Infact there is urgent need and necessity for business to be financed through long-term or permanent sources of finance.
The issue of shares, stocks and debentures constitute of the major sources of permanent and long-term financing of business projects. Shares, stocks and debentures are not issued, in the open and neither are they issued with out some strict legal guidelines and the public are all involved in the process. It is in recognition of these facts that the topic sale and transfer of shares in public limited liability company in Nigeria was carefully chosen by the researcher to have an indepth study and knowledge of what it takes a public limited liability company in Nigeria to sell her shares through issuing houses, what it takes an average shareholder in Nigeria to transfer his or her shares and the accounting implication on the legal procedures that involve in the quoting of any particular securities in the stock exchange market of the country.
It also help to acquire a better skill in this particular, area of endeavour.
1.1 OBJECTIVES OF STUDY
this research work is under taken to have an insight and through understanding of work it means to issue and transfer shares in public limited companies in Nigeria. It also expresses the various activities of the stock exchange market in the area of legal procedure in listing any particular security.
It also makes appropriate recommendation to Nigeria stocks exchange where necessary like in the area of capitalization of public limited liability companies and restore the confidence of the interested parties.
Finally to provide a basis for further investigation by future generation.
Since shares, stocks and debentures are not issued in an open air, neither are they issued without some strict legal guidelines, the researcher will have inept knowledge of what it takes a public limited liability company in Nigeria to issue shares or debentures, what it takes an average share holder in Nigeria to transfer his or her shares whenever he pleases. To know if there are any laws and guidelines shares. The accounting implication on the part of the company making the issue.
Floating of shares is one of the permanent sources of finance available to the public companies. A public company that desires to have its securities quoted on the stock exchange market does not go straight to the exchange market which acts as an intermediary. There is a high lost in obtaining quotation and fear loosing control of the business upon obtaining quotation.
Also companies have little or no knowledge of the benefits of stock exchange quotation and hence their reluctance to disclose accurate financial information. All these problems therefore prompted the researcher to under take a research on this particular subject.
Hypothesis are declarative statement that relate generally or specifically and do not vary from one another. In this research for effective conduct and understanding some research hypothesis have been formulated viz.
Ho: Issue of share has no procedure, legal and accounting implications
Hc: Issue of shares has procedures, legal and accounting implication.
Null Hypothesis (Ho)2
There are no strict guidelines for transfer of shares.
ALTERNATIVE HYPOTHESIS (HO)3
It is not only the Nigerian stock exchange that is in the issue and transfer of share.
The data’s in this study are:-
Primary data
Secondary data
Primary data that are relevant to this study are collected through face to face inter views conducted with some officers of the companies and shares holders. Besides, it is through questionnaire and interviews that primary data collection are conducted. Questions which reflect the theme of the study are also used. The responses from them are very helpful in throwing more light on the operation of the Nigeria stock exchanges, the issuing houses and the public companies.
On the other hand secondary data are collected from available data that are contained in the Nigeria stock exchange journals and yearly financial statements. Other relevant data’s were gotten from the intensive review of related literature ranging from text books, journals articles as well as from unpublished works of experts in the field of issued and transfer of shares.
Finally, data are used which are made of some mathematical and statistical techniques is analyzing some of the fact collected. Data analysis are based on chi-square and percentages which are used to test the research hypothesis (rejected), & the alternative hypothesis (Accepted).
For the purpose of this project references have been restricted to public limited liability company in Nigeria, the Nigeria stock exchange and the issuing houses. This project does not involve the ex-dividend and com-dividend computation of the values of shares. The lack of time and money to carry out the research work has highly limited the scope of this study.
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COMPLETE MATERIAL COST N2,500 Or $10. FRESH PROJECT MATERIAL COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.
THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 24 HOURS
CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
WE HAVE SECURITY IN OUR BUSINESS.
A CASE STUDY OF NIGERIA STOCK EXCHANGE
PROPOSAL
This project reviews procedures, legal and accounting implication of public limited liability companies to the sale and Transfer of shares in Nigeria stock Exchange, it will list various problems facing sale and transfer of shares in Nigeria state exchange market.
Research hypothesis will be formulated for effective conduct and understanding due to declarative statement that relate generally or specially and do not vary from another.
Data will be used which made of some mathematical and statistical techniques some of the fact collected.
Analysis will base on chi- square and percentage which will be used to test the research hypothesis which consist of null hypothesis etc.
Requirement which will be fulfilled be interested parties for admission into the official list of exchange trader are listed.
Explanation will be made on Application which stresses standard format which is completed by issuing house stating the securities for which application is being made.
Generally I undertake writing this project to have on insight and through understanding of what it means to issue and transfer shares in public limited companies in Nigeria.
To understand the various activities of the stock exchange in the area of legal procedures in listing any particular security and of the same time to make appropriate recommendation to Nigeria stock exchange where necessary like in the area of capitalization on the public limited companies and restore the confidence of the interested parties.
CHAPTER ONE
- Introduction 1
1.1 Objective of study 2
- Significance of the study 3
- Statement of the problem 3
- Hypothesis formulation 4
- Research methodology 5
- Scope and limitation of study 6
- Definition of terms 6
Reference 9
CHAPTER TWO
- Review of Related Literature 11
2.1 Sale of shares/Debentures procedures 17
- Listing Requirements 18
- The Application 20
- The role of Nigeria stock exchange in
respect of sale of shares. 21
- Kinds of securities traded in the primary secondary
market/market for outstanding securities. 25
- The development of the second-Tier securities
market (S.S.M) Historical Background . 30
- Marketing of securities will be by the following methods 32
- Applications and Allotment of shares. 47
- Performance On two years
of civil Administration. 49
Reference 51
CHAPTER THREE
- Research design and methodology 53
3.1 Source of data 53
- Administration of Questionnaire 54
- Sampling presentation 55
- Population 55
- Method of Analysis 55
- Statistical Test for Hypothesis 56
Reference 58
CHAPTER FOUR
- Presentation and analysis of data 59
4.1 Presentation 60
- Analysis and interpretation of data 60
CHAPTER FIVE
Summary of findings, conclusion and recommendation 74
5.1. Summary findings 74
5.2 Conclusion 75
5.3 Recommendation 76
Bibliography 78
Questionnaire 80
CHAPTER ONE
- INTRODUCTION
Over the years, business have grown from sole proprietorship to partnership to private limited liability companies and now to public limited liability companies.
This revolution in business growth over the years has necessitated the need for long and permanent sources of financing business expansions and other projects. The age has passed when business used to be financed adequately with private savings or other short-term funds. Infact there is urgent need and necessity for business to be financed through long-term or permanent sources of finance.
The issue of shares, stocks and debentures constitute of the major sources of permanent and long-term financing of business projects. Shares, stocks and debentures are not issued, in the open and neither are they issued with out some strict legal guidelines and the public are all involved in the process. It is in recognition of these facts that the topic sale and transfer of shares in public limited liability company in Nigeria was carefully chosen by the researcher to have an indepth study and knowledge of what it takes a public limited liability company in Nigeria to sell her shares through issuing houses, what it takes an average shareholder in Nigeria to transfer his or her shares and the accounting implication on the legal procedures that involve in the quoting of any particular securities in the stock exchange market of the country.
It also help to acquire a better skill in this particular, area of endeavour.
1.1 OBJECTIVES OF STUDY
this research work is under taken to have an insight and through understanding of work it means to issue and transfer shares in public limited companies in Nigeria. It also expresses the various activities of the stock exchange market in the area of legal procedure in listing any particular security.
It also makes appropriate recommendation to Nigeria stocks exchange where necessary like in the area of capitalization of public limited liability companies and restore the confidence of the interested parties.
Finally to provide a basis for further investigation by future generation.
- SIGNIFICANCE OF THE STUDY
Since shares, stocks and debentures are not issued in an open air, neither are they issued without some strict legal guidelines, the researcher will have inept knowledge of what it takes a public limited liability company in Nigeria to issue shares or debentures, what it takes an average share holder in Nigeria to transfer his or her shares whenever he pleases. To know if there are any laws and guidelines shares. The accounting implication on the part of the company making the issue.
- STATEMENT OF PROBLEM
Floating of shares is one of the permanent sources of finance available to the public companies. A public company that desires to have its securities quoted on the stock exchange market does not go straight to the exchange market which acts as an intermediary. There is a high lost in obtaining quotation and fear loosing control of the business upon obtaining quotation.
Also companies have little or no knowledge of the benefits of stock exchange quotation and hence their reluctance to disclose accurate financial information. All these problems therefore prompted the researcher to under take a research on this particular subject.
- HYPOTHESIS FORMULATION
Hypothesis are declarative statement that relate generally or specifically and do not vary from one another. In this research for effective conduct and understanding some research hypothesis have been formulated viz.
Ho: Issue of share has no procedure, legal and accounting implications
Hc: Issue of shares has procedures, legal and accounting implication.
Null Hypothesis (Ho)2
There are no strict guidelines for transfer of shares.
ALTERNATIVE HYPOTHESIS (HO)3
It is not only the Nigerian stock exchange that is in the issue and transfer of share.
- RESEARCH METHODOLOGY
The data’s in this study are:-
Primary data
Secondary data
Primary data that are relevant to this study are collected through face to face inter views conducted with some officers of the companies and shares holders. Besides, it is through questionnaire and interviews that primary data collection are conducted. Questions which reflect the theme of the study are also used. The responses from them are very helpful in throwing more light on the operation of the Nigeria stock exchanges, the issuing houses and the public companies.
On the other hand secondary data are collected from available data that are contained in the Nigeria stock exchange journals and yearly financial statements. Other relevant data’s were gotten from the intensive review of related literature ranging from text books, journals articles as well as from unpublished works of experts in the field of issued and transfer of shares.
Finally, data are used which are made of some mathematical and statistical techniques is analyzing some of the fact collected. Data analysis are based on chi-square and percentages which are used to test the research hypothesis (rejected), & the alternative hypothesis (Accepted).
- SCOPE AND LIMITATION
For the purpose of this project references have been restricted to public limited liability company in Nigeria, the Nigeria stock exchange and the issuing houses. This project does not involve the ex-dividend and com-dividend computation of the values of shares. The lack of time and money to carry out the research work has highly limited the scope of this study.
- DEDICATION OF TERMS
| Public limited liability company | Any company limited by shares which is not private company |
| Memorandum of Association | This is the document of associates which contains the regulation which govern the company relationship with the outside world. |
| Articles of Association | Internal constitution of company |
| Shares | A share may be defined as the interest which a shareholder has in a company. |
| Authorized share capital | This the amount of capital with which the company is registered and empowered to issue |
| Preference shares | There are those to which the memorandum or Articles of Association attach some preferential right over the other classes of shareholders. |
| Ordinary share | These are regarded as the owners of the company. |
| Prospectus | This is document which gives information about shares to those who may be interested in subscribing for the shares of the company. |
| Debenture | This is a written acknowledgement of a debt by a company |
| Primary market | This is concerned with offering of new issues or initial issuance or securities in the stock exchange. |
| Secondary market | This is the market for already existing or outstanding shares |
| Secondary-tier securities market | This is stock market meant for small business that do not meet the requirement of the Nigeria stock exchange to enable them raise capital in the stock market |
| Securities and exchange commission | This is a body established with the responsibility of determining the issue prices before quotation. |
| Issuing houses | This is a specialized institution that assists, advises or undertakes on behalf of a company, the task of raising funds through the issue and sale of securities. REFERENCES ALILE H.L. The Nigeria stock exchange Historical operations and contribution to economic development published in Bullion (silver fudilees edition 1984). VICKERY Principle and Practice of book keeping and Accounts 2nd Edition Dominton press Ltd. AGUOLU P.S.O Financial Management and Edition 1998 P. 148 Nzewi .U.C and Aroh J.C Intermediate Financial Accounts 1991 P.195 Ibid P.199 Ibid P.199 Ibid P.204 Opcit P.148 |
Download our android mobile app for more materials
ORDER NOW
COMPLETE MATERIAL COST N2,500 Or $10. FRESH PROJECT MATERIAL COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.
THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
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GTBANK
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ACCOUNT NUMBER: 0138924237
First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631
Account Name: Chi E-Concept Int’l
Account Name: 3059320631
Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 24 HOURS
CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
WE HAVE SECURITY IN OUR BUSINESS.
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