Increase in share capital

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saheb

saheb (Querist)
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02 January 2014 Is alteration of aoa is compulsary while increase in capital??

Anandakrishnan V, Chengannur

Anandakrishnan V, Chengannur (Expert)
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03 January 2014 Authorized capital already specifying in AoA. If the company need to increase paid capital more than specified in AoA,should be alter the same and passing a Special Resolution in connection with same by company is very necessary.

Apart from existing shareholders, if the company having share capital at anytime, proposes to increase its subscribed capital by the issue of further shares, such shares may also be offered to employees by way of ESOP subject to approval of shareholders by way of special resolution. (Clause62 of Companies Act 2013)