INCREASE IN THE COMPANY'S AUTHORIZED SHARE CAPITAL

The authorised share capital is the maximum amount of capital that a corporation can issue and allot as equity or preference shares, depending on the situation. To enhance authorised share capital, members must pass a special resolution. It can be expanded to allow for the issuance of new shares and/or the infusion of additional capital into the company. We can help you with timeframes, procedures, and e-filing for the Company's increase in authorised share capital.

INCREASE IN AUTHORIZED SHARE CAPITAL

Basic information

The approved share capital is the maximum amount of capital that a corporation can issue and allot as equity or preference shares, depending on the situation. To enhance authorised share capital, members must pass a special resolution. It can be expanded to allow for the issuance of new shares and/or the infusion of additional capital into the company. We can help you with timeframes, procedures, and e-filing for the Company's increase in authorised share capital.

The increase in authorised share capital allows for more allocation of shares via Private Placement, Bonus Issue, Rights Shares, ESOP, and other methods.

The Stamp Duty must be paid at the time of submitting applicable Eforms with the MCA, and the amount varies depending on the state Stamp Duty Acts.

The sum indicated in Clause V of the Memorandum of Association is the Capital Clause in regard to a firm.

What will you receive in Increase in authorised capital package ?

Preparation of documents for increase in authorised capital
Shareholders’ Ordinary Resolution
Alteration of Memorandum of Association (MOA)
Govt. Stamp duty payment

What is the process for increase in authorised capital of Company ?

Step 1: Board Resolution:

The Company must first hold a Board meeting to review and discuss whether or whether the authority granted in the Company's Articles of Association (AOA) allows for an increase in the authorised capital. If the answer is no, change the AOA and hold a general meeting to increase the authorised capital.

Step 2: Ordinary Resolution for increase in authorised capital:

The Company will hold a General Meeting of Members and approve an ordinary resolution increasing the company's authorised capital and making corresponding amendments to the Memorandum of Association at that meeting.

Step 3: Filing of necessary forms:

The company will file forms MGT-14 for filing resolutions and Form SH-7 together with appropriate documentation for increase in authorised capital with the Registrar of Companies (ROC) through the MCA portal once the Ordinary Resolution for increase in authorised capital of the business is passed.

Step 4: Approval of the ROC:

Endless supply of the Forms of expansion in approved capital of the Company by the Registrar of Companies, and assuming it is happy with the structures documented and consistence made, he will handle the structures and support such expansion in approved capital. When the structure is supported, the Master information of the Company will be refreshed on the MCA gateway.

What can be the reasons for increase in authorised capital of the Company ?

Requirement for huge funds
Financing the new projects of the Company
Combination of two businesses through merger and their capital infusion as part of scheme of arrangement
Further issue of share capital
Conversion of debt into share capital
To meet the statutory requirements


What Documents are required for increase in authorised capital Company ?

Details and breakup of increase in capital
Ordinary resolution for increase in authorised capital
Alteration of MOA
DSC token of Director for filing of forms.

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