{"id":23902,"date":"2019-09-05T09:59:31","date_gmt":"2019-09-05T04:29:31","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=23902"},"modified":"2019-09-04T17:52:34","modified_gmt":"2019-09-04T12:22:34","slug":"procedure-for-the-alteration-of-share-capital","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/procedure-for-the-alteration-of-share-capital\/","title":{"rendered":"Procedure for the alteration of Share Capital"},"content":{"rendered":"

The Company which has decided for increasing its Capital, first it need to check the existing Authorised Share Capital because the Company cannot issue the shares beyond the authorized Share capital<\/a> therefore for issuing the shares is required to increase the authorized share capital<\/a><\/strong> by altering the Memorandum of Association of the Company. The Company having the Share Capital may if so authorized by the Article of Association can alter the Share Capital the Company needs to follow the procedure as prescribed under the Companies Act, 2013.<\/p>\n\n\n\n

Notes As per the Companies Act, 2013 definition of altering or alteration includes the making of additions, omission, and substitution.<\/astrong><\/div>\n\n\n\n

Types of Alteration of Share Capital<\/h2>\n\n\n\n

As mentioned in Section 61 of the Companies Act, 2013<\/strong>[1]<\/a><\/sup> there are different types of alteration of Share Capital are as under:<\/p>\n\n\n\n

  1. Increase in Authorised Share Capital;<\/li>
  2. Consolidation and division all or any of the Share Capital into shares of larger amount than existing Share;<\/li>
  3. Convert all or any of its fully paid-up shares into the stock and  re-convert that stock into the fully paid-up shares of any denomination;<\/li>
  4. Sub-divide its shares or any of them, into the shares of smaller amount than is fixed by the memorandum the proportion between the amount paid and the amount if any, the unpaid amount on each reduced share shall be the same as it was in the case of share from which the reduced share has been derived;<\/li>
  5. Cancellation of shares which at the date of passing of the resolution in that behalf, have not been taken or agreed to be taken by any person and diminish the amount of its share capital by the number of shares so canceled (not be deemed as Reduction of Share Capital).<\/li><\/ol>\n\n\n\n

    Also, Read:<\/b> Share Capital Types: What are the Types of Share Capital in India<\/a><\/mark>.<\/p>\n\n\n\n

    Steps to be followed for the alteration\nof share capital<\/h2>\n\n\n\n