thanks
regards CS Sumat singhal
CA Sumat Singhal (Credit Analyst/ Financial Services/ Accounts & Finance) (3677 Points)
04 April 2011thanks
regards CS Sumat singhal
Jayashree S Iyer
(Company Secretary)
(3224 Points)
Replied 04 April 2011
Increase in authorised capital requires shareholders approval. You being the majority shareholder (holding more than 51% of shares), without your consent auhtorised capital cannot be increased.
However increase in paid up capital within the ASC is very much possible. Check your articles, if it contains any restrictions on allotment of new shares. Many private companies incorporate some clauses restricting allotment or transfer of shares to third parties without making offers to the existing shareholders. If you have any such articles in your AOA, then they have to offer new shares to you.
Sudhir Garg
(Service)
(236 Points)
Replied 05 April 2011
Agree with Jayashree
Furter, please check the applicability of right issue if Pb company.
Further to check the increase of PUC in future, please amend the AOA incorporting it as "RESERVE MATTER". Further being the holding company, you must have the majority of directors on the board.
Regards- Sudhir
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)