3) Use of item 22 – repayment of previously paid-up equity

Factual information:
A is the sole shareholder in company X. The company has one share class, ordinary shares. The company has decided to repay NOK 500,000 of previously paid-up equity.

Information from the previous year:
Total share capital in the company: NOK 5,500,000 (balance brought forward) 5,000,000 (balance carried forward)
Number of shares: 1,000
Nominal value per share NOK 5,500 
Paid-up share capital: NOK 6,000,000

At the end of the year, it was decided that NOK 500,000 of the share capital would be converted to other capital. This reduces the company’s total share capital and nominal value, but not the paid-up share capital, as no repayments will be made to the shareholders.

Information for the year:
Total share capital in the company: NOK 5,000,000 (reduced by NOK 500,000 (last year))
Number of shares: 1,000
Nominal value per share NOK 5,000 (reduced by NOK 500)
Paid-up share capital: NOK 5,500,000

Solution:
Enter the figures above as shown in the attachment below.

We will also look at the actual solution for the repayment to the shareholder. Reduction in repaid capital is entered directly under item 5 of the business return. Paid-up capital is reduced by NOK 500,000 At shareholder level, fill in item 22. See completion in the attachment below.

Special remarks:
Item 22 should not be used if the company repays share capital directly to the shareholders without first converting it to other equity. Items 1, 2 and 5 must be reduced at company level, and the reduction in capital must be entered under item 17 and under item 27 at shareholder level.

Distribution of the company’s unrestricted capital will be considered to constitute a dividend and must be entered under items 8 and 21.

 

For correct completion, see the correctly completed shareholder register statement.

 Repayment of paid-up equity Main form and sub-form