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increase of authorised capital

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(Querist)
03 September 2009 what is benefit/disadvantages for increase of authorised capital by the company
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CA CS CIMA Prakash Somani

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CA CS CIMA Prakash Somani (Expert)
03 September 2009 Mainly there is no direct advanatage but there is scope for fund expansion if needed
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Ankur Garg

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Ankur Garg (Expert)
03 September 2009 No direct advantage. But there is a indirect benefit.

Paid up share capital of a company can not be more then the authorised capital of the company.

If your paid up and authorised capital are same you can not issue further share and can not inject more money in the company.

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