The maximum limit of share capital up to which a company can issue its share to shareholders is known as authorized capital. A company is not authorized to issue paid-up capital beyond authorized capital. If the company proposes to issue shares beyond authorized share capital amount, if do so then it has to increase the authorized share capital after fluffing the particular compliance.
For increasing authorized capital company has to follow the provisions led down under section 61, section 13 and section 64 of the company’s act 2013.
➲ Article authorizes for this: Article of the company must contain the provision related to the increase of authorized capital. Means article must allow for increasing the share capital of the company. If the company article doesn’t have such provision then the first step is to amend the article of the company and add such provision.
➲ Commence Board meeting: Pass resolution for:
➲ Issue Notice of EGM: send notice to all the shareholders of the company including directors and auditor of the company at least 21days before the EGM date
➲ Commence EGM: hold EGM on the due date and passing an ordinary resolution under section 61(1)(a) for increasing the authorized share capital
➲ File form SH-7: in within 30 days from the date of passing resolution company need to file SH-7 along with following attachments;
➲ Concerned ROC (registrar of the company ) will scrutinize the form and attachment and will approve for increasing authorized share capital
Forms |
Filing date |
SH-7 |
Within 30 days from passing such resolution |
The share transfer is a process through which the transferring of share takes place between the existing person or from existing person to the third person. Transferability of shares are govern under companies article. The securities like equity share are
The maximum limit of share capital up to which a company can issue its share to shareholders is known as authorized capital. A company is not authorized to issue paid-up capital beyond authorized capital. If the company proposes to issue shares beyond aut
The process by which Company buy-back it’s Shares from the existing Shareholders usually at a price higher than the market price is known as buyback of shares. Situation when the Company buy-back the Shares, the number of shares outstanding in the marke
We are just a call or message away!
Call or WhatsApp us on +91-99991-39391 to free consultation about this service with our team of professional. You can also email us on reach@corpzo.com.
Precision is our speciality!
Upon completion of the documentation we waste no time in preparation and filing of your application. Once filed we will share the acknowledgement with you.
We understand your business needs!
We align a professional to ensure you have you to discuss in detail the compliance requirements of your business and through assistance throughout the process.
Accuracy ensures timelines!
Our team warrants hassle free documentation. We collect the necessary documents and share the relevant drafts to ensure a timely filing and delivery.
Keeping you informed is our responsibility!
We thrive to keep you apprised about the status of your application until its completion. Every development on your application is brought to your attention.
We deliver what we commit!