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increase authorized

Increase in Authorised Capital

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  •    Increase in Authorized Share Capital
  •    Ideal at the time of expansion



Increase in Authorised Capital

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.

Reasons to Increase in Authorized Capital

Process for Increase in Authorize share Capital

Authorisation in Article is must for Increase

    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.

  • The company has to make sure that its Courses of Connotation contains a provision, approving it to increase its approved share capital.
  • So, first one should check whether there is an allowing provision in the apprenticeships of Connotation regarding the increase in approved share capital.
  • If there is no such facility, then the company has to take steps for amendment of its Articles of Association in harmony with the provision of Section-14 of the Companies Act, 2013, so as to insert the article allowing an increase in the approved share capital of the Company.

Calling of Board Meeting

    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:

  • To get in-principal authorization of Managers for increase in approved Share Capital;
  • Fix date, time and place for property extra-ordinary EGM to get authorization of stockholders by way of Commonplace Resolve, for alteration in approved share Capital clause of Memorandum of Connotation. This alteration in authorised share Capital clause of Memorandum of Overtone shall be in accord with the prerequisite of section 61 of the Companies Act, 2013.
  • To agree on notice of EGM, the programme and descriptive speech has to be occupied to the notice of General Meeting as per section 102(1) of the Companies Act, 2013.

EGM to all Participants, Managers and the Auditors of the company in accordance with the provisions of Section 101 of the Companies Act, 2013

Holding of General Meeting

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.

ROC Form filing

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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