Company Statement of Affairs
The Statement of Affair is a summary of a Company’s assets and liabilities. It states the net book value and amount expected to realise at the date of Insolvency of the business. It provides a useful source of information for both the Administrator and the creditors. And It is often referred to by lenders should directors get involved in new ventures before lending to the new company to understand how serious the previous insolvency was. The SOA may also be considered when determining whether a director should be disqualified.
Its analysis can be used to establish:
The likely return to creditors
The extent of the insolvency
Whether the directors have concealed assets from the administrator
Whether there are indications of wrongful trading
Once the administration is complete the actual performance of the administrator.
Filing of Statement of Affairs for CAC and FIRS Applications
For CAC Filing of Annual Returns, requirement include:
Audited financial statement or statement of affairs for “Small Companies” signed by 2 directors and duly certified by a chartered accountant where applicable.
Small companies include
Company with authorised share capital of less than N2million
Company with annual turnover of less than N2million
Company with no allien or foreign national member or government agent or nominee.
Where the directors among them hold more than 51% of the alloted share capital.
For FIRS Filling of annual return, requirement include:
Company Statement of Affairs whereby the company is yet to commence business or/and audited financial statement signed by a director and duly certified by a chartered accountant where applicable Payment of fees
Source: Marylea
