A Private Limited company wants to increase its authorised share capital by issuing new equity shares and preference shares. Can it do so? The present authorised share capital is divided into equity shares only.
For altering the Clause V of Memorandum, special resolution will be required since preference shares are also being issued or an ordinary resolution will do?
The Articles of the company contains the following clauses:
The Authorised Share Capital of the Company shall be such amount and be divided into such shares as may from time to time be provided under Clause V of the Memorandum of Association of the Company.
Subject to the provisions of Section 80 any preference shares may, with the sanction of an ordinary resolution be issued on the terms that they are, or at the option of the Company, are liable, to be redeemed on such terms and in such manner as the Company before the issue of the shares may, by special resolution, determine.
Can anyone show me a general meeting resolution for increasing the authorised capital in above manner.
CAclubindia
