Issue of Fresh Change capital
Every Company requires capital in form of shares to operate and maintain the business. The organization utilizes this capital to generate business. Where company choses to expand its capital, we need to first check the limit for authorized capital. For issuing shares beyond the authorized share capital, the company needs to increase the authorized capital by altering the Memorandum of Association of the Company.
Basic Requirements for fresh issue of Share Capital- Article of association must authorize increase in share capital
- Approval from board of directors and shareholders
- Intimation to Registrar of Companies and approval thereof
E-Tax Service Offerings:
- Preparation of necessary documents for share capital increase like altered MOA and AOA
- Drafting of documents required to call and hold the required meetings like notice of meetings, certified true copy of resolutions and minutes
- Filing of ROC forms SH-7 and MGT-14 along with uploading of necessary attachments
Our Procedure for Change in Share Capital
- If required, drafting an altered Memorandum of Association and Articles of Association
- Issue notice to all the directors of company for calling the board meeting
- Hold the meeting of Board of Directors and pass the following Board Resolutions:
- To consider the alteration of MOA and AOA;
- To consider increase in share capital;
- To approve notice of general meeting along with explanatory statement;
- To fix day, date, time and venue for holding general meeting;
- To authorize the director or company secretary to do such acts, deeds and things as may be necessary to give effect to the Board’s decision
- Send notice of general meeting along with explanatory statement to those who are entitled to receive notice like directors, members, auditors and others
- Obtain shareholders’ consent by passing the necessary resolutions at the general meeting for approving the increase in share capital of the company
- For intimating the ROC, file form SH-7 for increase in share capital along with notice of general meeting, certified true copy of the ordinary resolution, altered memorandum of association and altered articles of association
- In case special resolution is passed for the alteration of AOA, file MGT-14 within 30 days of passing resolution
- Obtain approval from registrar for change in share capital