Increase
in Authorized Capital of Company
The authorized capital of a
company is the maximum amount of share capital that the company is authorized
by its constitutional documents to issue to shareholders. It is also known as s
the authorized share capital, registered capital. Part of the authorized
capital can remain unissued. The company can raise capital up to this amount. The
part of the authorized capital which has been issued to shareholders is
referred to as the issued share capital of the company.
The device of
the authorized capital is used to limit or control the ability of the directors
to issue or allot new shares, which may have consequences in the control of a
company or otherwise alter the balance of control between shareholders. Such an
issue of shares to new shareholders may also shift the profit distribution
balance. The authorized capital can be changed with shareholder’s approval.
This is increased with a view to raise more funds in terms of equity finance,
because beyond the limit of authorized capital equity cannot be raised. After
the increase in authorized capital the company may raise the required funds by
the way of equity.
Documents required:
Ø Certificate of Incorporation.
Ø Copy of MOA/AOA.
Procedure of Increase
in Authorized Share Capital
Ø Articles of Association of
the Company to provide necessary authority/powers is there to increase the authorized
share capital of the Company.
Ø Issue the Board Meeting
notice in writing and convene the Board Meeting to decide about the increase
and to fix up the date, time, place and agenda for convening a General Meeting
for passing of the Resolution, if so required by the Articles, for the same.
Ø Issue notices in writing at
least 21 days before the date of the meeting for the General Meeting with
Explanatory Statement.
Ø Pass the necessary
Resolutions in the meeting.
Ø File the proceedings of the
meeting and necessary e-Forms with ROC and ROC will approve the such.
Inclusions in our services
Ø Drafting of Notices for
required Meetings
Ø Preparation of All required
Resolutions.
Ø All Documentation.
Ø Alteration in MOA.
Ø Statutory Fees.
Ø Share Capital Application
Preparation.
Ø Share Capital Application
Filing.
Ø All other Consultancies
regarding that.