Authorized capital - increase

MCA 1306 views 18 replies

Dear SAneha and Vidisha, just read out the question once again as follows:

Dear All, I'm practising CA in Bangalore. Kindly suggest me for the below mentioned issue :- One of my client ask to increase authorise capital for INR 10,00,000/- by keeping 100,000/- unalloted (INR 900,000/- is paid up capital) but due to error, Paid up capital is mentioned in the Form 5 of INR 10,00,000/-. and it is approved by ROC. Is there any way to correct it? How to rectify this error? Kindly Suggest. Regards, Divya

Here the question was that the company wish to keep Rs. 1 lakh un alotted and 9 lakh as paid up. so simple here is that if the company wish to keep 9 lakh as paid up capital, then company is to allot the shares. Hence, need to file form 2 for allottment. How without allotment, the paid up capital can be increased to 9 lakh.

Hope everyone is clear over it

Replies (18)

Dear SAneha and Vidisha, just read out the question once again as follows:

Dear All, I'm practising CA in Bangalore. Kindly suggest me for the below mentioned issue :- One of my client ask to increase authorise capital for INR 10,00,000/- by keeping 100,000/- unalloted (INR 900,000/- is paid up capital) but due to error, Paid up capital is mentioned in the Form 5 of INR 10,00,000/-. and it is approved by ROC. Is there any way to correct it? How to rectify this error? Kindly Suggest. Regards, Divya

Here the question was that the company wish to keep Rs. 1 lakh un alotted and 9 lakh as paid up. so simple here is that if the company wish to keep 9 lakh as paid up capital, then company is to allot the shares. Hence, need to file form 2 for allottment. How without allotment, the paid up capital can be increased to 9 lakh.

Hope everyone is clear over it

Yes. Mohit sir is right, Earlier Company has 1L capital now it increased to 10L(in that 9L is Paid up capital and balance 1L is un alloted) therefore i gave 8L shares (i.e 9L - 1L) as bonus share. convened EGM, passed resolution  for bonus issue and filed form 2. 

So it is resolved...

thank you for calrifying mohit, so u mean to say that the allotment if of 8 lakh by filling form 2 r8

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