Increase in paid up capital without increase in authsd captl

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Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2012 The company has following structure regarding capital in 2003:

Authorised Capital: 1 Lac
Paid Up Capital: 1 lac

Now the company increases its Paid up capital to Rs. 3,00,000 without increasing Authorised capital!!!

Later on company filed form 5 in 2005 increasing Authorised Capital to Rs. 5,00,000.!!! (from 2005 date)

What is the impact of this????

Can we do something to rectify this???

Ajay Mishra

Ajay Mishra (Expert)
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01 March 2012 Hi

I think, in 2003 Form -5 was filed physically with ROC. But now due to electronic filing with MCA it will be easy to file on line of back dated form.

I will suggest you to file Form-5 with additional fee and rectify the mistake.

Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2012 in 2003, there were no any facility of electronic filing!!!

So can we file the Form 5 taday with back date???

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Ajay Mishra

Ajay Mishra (Expert)
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01 March 2012 Yes you can file electronically with additional payment, but please ensure that the Annual Return on or after 2003 give the correct authorised capital or not.

My question is whether company give the correct capital in Annual Filing or not after 2003 and capital increase.

CS SIDDHARTHA BANIK

CS SIDDHARTHA BANIK (Expert)
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01 March 2012 I like to suggest that along with filing back dated form 5 file simultaneous application for compounding of offence.

Thanks,

ARUN KUMAR MAITRA

ARUN KUMAR MAITRA (Expert)
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26 June 2012 I presume you have already held your AGM for the year 2003 and 2004 in which inter-alia Annual Accounts for the said years were placed and also approved by the shareholders.I further presume that in your Balance Sheets for the above years , you have shown the Authorised Capital at Rs. 1 Lac only.Therefore , at this stage,it will not be proper to file a back dated Return to rectify the mistake committed in issuing the shares beyond the limit of your Authorised Capital.You can file the Return only if your Authorised Capital was increased by complying with the necessary formalities and by mistake ,you have not filed the Return.Please take n.a. in consultation with a Co. Law Expert to avoid further complications.