Where any contract entered into by the director or any other employee, without obtaining the co...
The authorized share capital of the company is the maximum amount of capital which can be raised by the company through the issue of the shares to its shareholders and the company can raise capital up to this amount only. It is mentioned in the memorandum of association of the company.
In the case of a company require additional capital for expansion and to meet working capital requirements, then authorized capital can be increased by issuing new shares.
For the increase in authorized share capital, it is required to obtain the approval of the registrar of companies by filing requisite forms.
The increase the capital of the company is governed by the provisions of section 61 read with section 13 and 64 of the Companies Act 2013.
The article of association of the company must contain the provisions regarding authorizing it to increase its authorized share capital. If there is no such provision in the article, then the company is required to alter its article of association as per the provision of section 14 of the Companies Act 2013.
Notice of the board meeting shall be given to all the board of directors as per the provision of section 173(3) of the Companies Act 2013. For the purpose of convening the board meeting the agenda would be:
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Increase in Authorized Share Capital.Know More
The notice of the extra general meeting (EGM) will be issued to all the shareholders, directors and auditors of the company as per the provision of section 101 of the companies act 2013.
To hold the Extra Ordinary General Meeting of the company on the date decided and pass the necessary special resolution for an increase in the authorized share capital of the company.
Form MGT-14 is required to be filed within 30 days of passing the resolution in the general meeting and;
From SH-7 is required to be filed within 30days of passing the resolution in the general meeting with the concerned registrar of companies with the necessary fees along with the necessary attachments:
The concerned registrar of the company shall verify all the necessary documents and E- Form and approve the increase in the authorized share capital of the company.
Read our article:Procedure for the alteration of Share Capital