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Alteration Of Authorized Capital
Alteration Of Authorized Capital
“Authorised capital” means such capital as is authorised by the memorandum of a company to be the maximum amount of share capital of the company.
When a company is in its incorporation stages, one of the most important decisions that have to be made by the promoters is the amount of capital to invest in the company.
As the business begins to pick up, the company may look to expand its operations, expand in size, scale or structure. To make that dream a reality, it may require the pumping in of more funds into the company, basically increasing the share capital of the company. Sometimes, the amount of capital required might surpass the limit of the authorised capital at the time. The authorised capital is the maximum amount of capital for which the Company can issue shares to the shareholders.
Reasons for increase in authorised capital of the Company
- Requirement for huge funds
- Financing the new projects of the Company
- Combination of two businesses through merger and their capital infusion as part of scheme of arrangement
- Further issue of share capital
- Conversion of debt into share capital
- To meet the statutory requirements
Documents required for increase in authorised capital of the Company
- Details and breakup of increase in capital
- Ordinary resolution for increase in authorised capital
- Alteration of MOA
- DSC token of Director for filing of forms
The Company has to firstly conduct the Board meeting to consider and discuss the authority given in the Articles of Association (AOA) of the Company to increase in the authorised capital or not. If no, then alter the AOA and then call the general meeting for increase in the authorised capital. The Company will conduct General Meeting of the members and pass there at an ordinary resolution for increase in authorised capital of company and consequential changes to the Memorandum of Association. Call at 9962903855 to increase or alter the Authorized capital of the company.
