INCREASING THE AUTHORIZED SHARE CAPITAL OF A COMPANY

Verify Authorization In Articles Of Association:
  • For Increase in Authorise Share Capital, the company shall verify whether its Articles of Association contain aprovision authorising it to increase its authorized share capital.
    (The reason being Section 61 of the Companies Act, 2013, mandates that for increasing the Authorised share capital of the company, authorization in Articles of Association is a pre-condition.)
Convening of a Board Meeting:
  • To increase the authorized share capital, a notice is required to be issued for convening of meeting of Board of Directors and obtain in principal sanction of Board of Directors for increasing the authorized share capital of MOA.
  • Further a notice to call EGM along with explanatory statement is required to be issued to all the shareholders in accordance with section 102(1) of companies Act, 2013.
Passing of Ordinary Resolution:
  • Obtain consent of shareholders of the company in the conducted EGM by passing ordinary resolution.
ROC Form Filing:
  • The Ordinary resolution passed in EGM is required to be filed with ROC in form SH-7 within 30days of passing of OR along with following attachments:
    •       Certified True Copy of Ordinary Resolution
    •       Altered Memorandum of Association (capital clause of MOA will be changed)
    •       Notice related to EGM
Fill the form for Increasing Authorised Capital