Increase Authorized capital

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Increase Authorized Capital, Authorised Capital, Share capital Increase

Authorized capital which is the maximum amount of share capital that a company issues to its members or the shareholders. Initially, the companies registered by a small authorized share capital, which increase their capital as per the requirements of the Company such as issuing new equity shares and increasing paid-up capital.

As per the provisions of Section 61 of Companies Act 2013, the companies can increase its authorised share capital with specific procedure read with Section 13 and 14 of the acts which govern the alterations to the Memorandum of Association and Articles of Association of the company.

Process to Increase the Authorized Share capital:

• Verifying the Authorization in Article of Association
• Calling up on Board Meeting
• Issuing Notice of Extraordinary General meeting
• Holding Extraordinary General Meeting
• ROC Form Filing
• Approval of ROC

Verifying the Authorization in Article of Association (AOA):

In order to Increase the Authorized share capital, the company must first ensure that its Article of Association has the authorisation for the directors to Increase the Authorised Share Capital. This condition is mandated by section 61 of Companies Act, 2013.

If the Article of Association of the company has no such provisions the company must first take a step for the alteration of its Article of association in order to insert the clause enabling the Increase of Authorised Share Capital.

Calling up on Board Meeting:

Issue Notice to the directors of the company in accordance with the section 173(3) of companies Act, 2013, for calling up for the meeting of the board of the Directors.

Agenda for the meeting would be as follows,

To get the Prior approval of the directors to increase the authorization of share capital.
Date, time and place for holding the Extra-ordinary General meeting (EGM) should be fixed to get approval of shareholders, by passing Ordinary Resolution.
Agenda and Explanatory statement of EGM must be annexed to the notice of General Meeting in order to approve the Notice of EGM as per section 102(1) of companies Act, 2013.
Issue notice of EGM approved by the board to Authorize Director or Company Secretary.

Issuing Notice of Extra Ordinary general Meeting:

Issue Notice of Extra Ordinary general Meeting to all the members, Directors, Auditors and Company Secretary of the company in accordance with the provision of section 101 of the companies Act, 2013.

Holding of EGM Meeting:

Hold the Extraordinary general meeting on the date, time and Place fixed and pass the Ordinary Resolution in order to increase the Authorized Capital of the Company.

ROC Form Filing:

Form SH-7 must be filed within 30 days of passing the Ordinary Resolution to Increase the Authorized Capital of the company with the concerned Registrar of Companies along with the Prescribed fees and the Document to be attached with are,

Certified copy of Ordinary Resolution
Notice and Minutes of EGM
Altered MOA and AOA

Approval of ROC

The Concerned Registrar of companies will verify the form and the documents attached to it and will approve the Increase in Authorized share capital.

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Process to Increase the Authorized Share capital:

Verifying the Authorization in Article of Association (AOA):

Calling up on Board Meeting:

Issuing Notice of Extra Ordinary general Meeting:

Holding of EGM Meeting:

ROC Form Filing:

Approval of ROC

Head Office :- Kodambakkam

Branch Office :- Tambaram

Branch Office :- Nagercoil

Our Office Hours

Welcome to ARAMA

Process to Increase the Authorized Share capital:

Verifying the Authorization in Article of Association (AOA):

Calling up on Board Meeting:

Issuing Notice of Extra Ordinary general Meeting:

Holding of EGM Meeting:

ROC Form Filing:

Approval of ROC

Head Office :- Kodambakkam

Branch Office :- Tambaram

Branch Office :- Nagercoil

Our Office Hours