Increase Authorize Capital
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Benefits of increasing authorised capital
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ESSENTIAL FEATURE OF AUTHORISED CAPITAL
A company’s authorised capital denotes the maximum amount of shares it may sell to the shareholder. There is no minimum capital required as per the constitutional documents. To issue new shares or to raise the capital, the capital clause is amended by passing a resolution by the board.
Documents Required to Increase Authorize Capital
Checklist For Increasing the Authorized Capital are as followed
Followings are the Procedure to Increase the Authorized Capital
- First we need to Check if the company allows it to raise its authorised capital. If not you must pass a special resolution to amend it
- Schedule a board meeting and then pass a resolution to increase the authorised capital of the company
- Schedule and conduct an EGM on the given date, place, and time, and pass a resolution with shareholder approval.
Within 30 days of passing the shareholders’ resolution, SH-7 form should be filed with the registrar of companies. And If the resolution is passed you must file MGT-14 form too within 30 days of the resolution passing
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