The authorized capital of a Company determines the number of shares a Company can issue to its shareholders. The share capital is that part of a company’s equity which has been raised by issuing shares and selling them to stockholders in exchange for capital.
Section 61 of the Companies Act, 2013, orders that for expanding the Authorized offer capital, approval in Articles of Association is a pre-condition. Articles of Association is a document which prescribes the rules and bye-laws for the general management of the company.
To increase the authorised share capital, first, convene a Board Meeting by providing notice to the Director. A board meeting is called wherein it is decided that an EGM is to be held to discuss and vote on the matter of raising authorized share capital.
An extraordinary general meeting (EGM) is a different meeting from the annual general meeting (AGM) of a company. An EGM is also called a general emergency meeting. Once notice of the impending EGM has been sent out and the meeting is in session, conducting the Extra-Ordinary General Meeting and obtain shareholders approval for increase of authorized capital The approval of shareholders must be in the form of an ordinary resolution.
Purpose of the Form Whenever a company change its share capital or increases the share capital then a return shall be filed with the registrar within 30 days of such alteration or increase.
The following documents must be attached:
The following documents are required.
Digital Signature Certificate:
DSC of one of authorised director to be provided.
MoA & AoA:
A copy of latest amended MoA and AoA of the company.
Certificate of Incorporation:
Certificate of Incorporation of company to be provided.
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