Increased Authorized Capital

Can authorized capital be increased?

Company can increase its authorized share capital, only if it is authorized by its Articles of Association and after obtaining approval of members by ordinary resolution.

Is MGT 14 required for increase in Authorised capital?

In less than 30 days of the resolution being passed, a company must file eForm SH-7 and eForm MGT – 14 (if applicable) along with the prescribed fees with the Registrar.

Can Authorised capital be reduced?

Yes Authorized share capital can be reduced, this is known as Diminution. Diminution of capital (i.e. share capital) of a Company means reduction of the share capital by cancellation of the unsubscribed part of the issued capital.

How can a company increase Authorised share capital?

Convene a Meeting of Board of Directors [As per section 173 & SS-1]

1. to consider and approve increase of Authorized Share Capital and altering the Memorandum of Association, subject to the approval of shareholders in General Meeting.
2. to fix day, date, time and venue for holding General Meeting of the Company.

What is paid up capital of a company?

Paid–up capital is the amount of money a company has received from shareholders in exchange for shares of stock. Paid–up capital is created when a company sells its shares on the primary market directly to investors, usually through an initial public offering (IPO).

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