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The authorised capital of a company concludes the number of shares, a company can issue to its shareholders. It is required for issuing new shares and inducting more capital into the company. The early approved capital of the company is mentioned in the memorandum of the connotation of the company and is usually Rs. 1 Lakh. The approved capital can be increased by the company at any time with shareholders approval and by paying an additional fee to the registrar of companies. To begin the process for increasing approved capital, a resolution must be passed by the "Board of Managers". In the Board Determination, an approval must be provided for increasing the certified capital of the company and making the compulsory changes to the MOA and AOA of the company.
For an increase in Approve Share Capital, the company has to make sure that its Courses of Connotation cover a provision approving it to increase its approved share capital. The purpose being Division 61 of the Companies Act, 2013, commands that for increasing the Approved Share Capital, approval in Articles of Connotation is a pre-condition.
Issue notice in accordance with the necessities of section 173(3) of the Companies Act, 2013, for assembling a meeting of the Board of Managers. The main plan for this Board meeting would be:
EGM to all Participants, Managers and the Auditors of the company in accordance with the provisions of Section 101 of the Companies Act, 2013
Hold the Extra-ordinary EGM on the due date and pass the necessary Ordinary Resolution under section 61(1)(a) of the Companies Act, 2013, for an increase in authorized share capital of the Company.
File form SH-7 within 30 days of the passing of Commonplace resolve with the concerned Registrar of Companies, with arranged fees and along with the following add-ons as anticipated by section 64:a. Notice of EGM.b. Certified True copy of Ordinary Resolution.c. Reformed Memorandum of Connotation.
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