4.19 Equity and Minimum Paid-up Capital Requirements
N 35/2018 STA
4.19.1Total Equity of the Licensed Person must not fall below the minimum required paid-up capital as stipulated in Paragraph 2.3 of Chapter 2;
4.19.2Total Equity includes:
a)Paid-up Capital;
b)Statutory/Legal Reserves;
c)General Reserves or any other Reserves of similar nature;
d)Current year profits or losses (i.e. profits to be added and losses to be deducted); and
e)Retained earnings/accumulated profits or losses (i.e. retained earnings/profits to be added and losses to be deducted).
4.19.3Debit balance in the current account of the owner/partners/shareholders, if any, must be deducted from the Total Equity;
4.19.4Where the Total Equity falls below the minimum required paid-up capital, the Licensed Person must inject additional paid-up capital to balance the equity position after obtaining a Letter of No Objection from the Banking Supervision Department. Such injection of additional paid-up capital must be made within six (6) months from the date when the equity falls below the minimum required paid-up capital; and
4.19.5In the case of a newly established business, the Licensed Person is entitled for a grace period of one (1) year from the date of commencement of the business before being required to inject additional paid-up capital to comply with the requirements of Paragraph 4.19.4 of this Chapter, unless specifically instructed by the Central Bank to do so.