INCREASE IN SHARE CAPITAL
| board_resolution.doc |
| egm.docx |
| explanatory_statement.doc |
| notice_and_explinatory.doc |
capital increase procedure under the Companies Act , 2013
1. Checking Articles of Association
First, the company's AOA to check if appropriate authority / powers are there to increase the company 's approved share capital.
Where no such authority is provided for in the Articles of Company, the provisions in AOA must be amended (Section 14 of the Companies Act,2013) to include provisions allowing the company to raise its share capital, which can be accomplished by passing a special resolution.
2. Board of directors Meeting
Notice for Board Meeting will be given in writing (no less than seven days notice before the Board Meeting) and convene the Board Meeting.
Board of directors will discuss and approve:
a.Increased approved company capital subject to shareholder approval.
b.Fix day, date, time and location of the Shareholders' Extra-Ordinary General Meeting for approved capital increase approval.
c.Approval and issue of EGM Notice (not less than 21 days before the EGM) along with agenda & explanatory statement to all Business members, directors & auditors.
Authorizing Director or Company Secretary to give EGM Notice.
3. Extraordinary General Meeting (EGM)
Holding Extraordinary General Meeting of Members as on Day, Date , Time and Site as agreed by the Board of Directors in the board meeting and passing ordinary resolution to increase authorization capital.
4. Forms for ROC filling:
File Form SH-7 (With Copy of Capital Alteration Resolution, Altered Association Memorandum, Note of EGM with Explanatory Statement as Annex to Form) within 30 days of such alteration.
Paying stamps online.
The Company's modified status of Approved Capital can be reviewed on the MCA site's company profile.
Note: Type MGT-14 is only necessary in case of a special resolution passed to amend the AOA. (Noted above).
1. Checking Articles of Association
First, the company's AOA to check if appropriate authority / powers are there to increase the company 's approved share capital.
Where no such authority is provided for in the Articles of Company, the provisions in AOA must be amended (Section 14 of the Companies Act,2013) to include provisions allowing the company to raise its share capital, which can be accomplished by passing a special resolution.
2. Board of directors Meeting
Notice for Board Meeting will be given in writing (no less than seven days notice before the Board Meeting) and convene the Board Meeting.
Board of directors will discuss and approve:
a.Increased approved company capital subject to shareholder approval.
b.Fix day, date, time and location of the Shareholders' Extra-Ordinary General Meeting for approved capital increase approval.
c.Approval and issue of EGM Notice (not less than 21 days before the EGM) along with agenda & explanatory statement to all Business members, directors & auditors.
Authorizing Director or Company Secretary to give EGM Notice.
3. Extraordinary General Meeting (EGM)
Holding Extraordinary General Meeting of Members as on Day, Date , Time and Site as agreed by the Board of Directors in the board meeting and passing ordinary resolution to increase authorization capital.
4. Forms for ROC filling:
File Form SH-7 (With Copy of Capital Alteration Resolution, Altered Association Memorandum, Note of EGM with Explanatory Statement as Annex to Form) within 30 days of such alteration.
Paying stamps online.
The Company's modified status of Approved Capital can be reviewed on the MCA site's company profile.
Note: Type MGT-14 is only necessary in case of a special resolution passed to amend the AOA. (Noted above).
