Query regarding alteration of moa
This query is : Open
01 March 2018
Does reduction of share capital amount to alteration of capital clause in the MOA?
Details :
The capital clause in the MOA consists of particulars such as the authorized share capital of a company, the face value of share, the class of shares, number of shares and the subscribers to such shares.
Reduction of share capital amounts to alteration of paid up/called up share capital of a company. Such particulars do not form part of the capital clause of the MOA.
So how does this type of reduction alter the MOA?
And if not, then Sec 61 of Companies Act, 2013 states that cancellation of unsubscribed capital of a company amounts to alteration of MOA. Again, such particulars of subscribed/paid up/called up/issued capital do not form part of the capital clause of MoA, so how does it really amount to altering the MOA?
Correct me if I’m wrong in my approach here.
Details :
The capital clause in the MOA consists of particulars such as the authorized share capital of a company, the face value of share, the class of shares, number of shares and the subscribers to such shares.
Reduction of share capital amounts to alteration of paid up/called up share capital of a company. Such particulars do not form part of the capital clause of the MOA.
So how does this type of reduction alter the MOA?
And if not, then Sec 61 of Companies Act, 2013 states that cancellation of unsubscribed capital of a company amounts to alteration of MOA. Again, such particulars of subscribed/paid up/called up/issued capital do not form part of the capital clause of MoA, so how does it really amount to altering the MOA?
Correct me if I’m wrong in my approach here.
03 March 2018
Yes. If Company propose to reduce its share capital by pay off any paid-up share capital which is in excess of the wants of the company, it require alteration of its memorandum by reducing the amount of its share capital and of its shares accordingly
03 March 2018
Reduction of share capital may be effected in one of the following ways
1. if the shares are of face value of INR 100 each of which INR 75 has been paid, the company may reduce them to INR 75 fully paid-up shares and thus relieve the shareholders from liability on the uncalled capital of INR 25 per share
2. if the shares of face value of INR 100 each fully paid-up is represented by INR 75 worth of assets. In such a case, reduction of share capital may be effected by cancelling INR 25 per share and writing off similar amount of assets
3. shares of face value of INR 100 each fully paid-up can be reduced to face value of INR 75 each by paying back INR 25 per share
Paid-up share capital for the purpose of for aforesaid capital reduction will involve alteration of capital clause of MOA.
1. if the shares are of face value of INR 100 each of which INR 75 has been paid, the company may reduce them to INR 75 fully paid-up shares and thus relieve the shareholders from liability on the uncalled capital of INR 25 per share
2. if the shares of face value of INR 100 each fully paid-up is represented by INR 75 worth of assets. In such a case, reduction of share capital may be effected by cancelling INR 25 per share and writing off similar amount of assets
3. shares of face value of INR 100 each fully paid-up can be reduced to face value of INR 75 each by paying back INR 25 per share
Paid-up share capital for the purpose of for aforesaid capital reduction will involve alteration of capital clause of MOA.
03 March 2018
Sir, does the capital clause of MOA contain particulars about the called up/paid up capital of the company?
If yes, could you share a sample MOA?
If not, then why would reduction of share capital alter the MOA? Can you explain how?
Thank you for your help. Your reply is awaited.
If yes, could you share a sample MOA?
If not, then why would reduction of share capital alter the MOA? Can you explain how?
Thank you for your help. Your reply is awaited.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Regis.
- Inventory of finished goods
- Disallowance of Section 43B(h) to sez units
- Applicability of Ind As to associate of associate
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Confusion around Form 26QB fields
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Sale of property furniture sale
- Bogus purchase treatment for it act gst dealer
- Tax on capital gains revoked us 54f
- Company Incorporation - CA and directors signing from different states
- Filing of Form 10BB instead of Filing Form 10B
- HSN Details in IFF/GSTR-1 & in GSTR 9
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
