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increase in authorised share capital

Shraddha Shukla (Corporate law Consultant) (346 Points)

30 November 2010

In the Annual General Meeting held on 15/07/2000 the shareholders of the company increases the authorized share capital from 10 cr to 30 cr, however due mistake/ignorance no filing regarding it was made by the company neither the same was shown in the books of accounts. Company is PSU and no public money is involved and uptil now no communication had being made to ROC about the same

(a) Can we make good this default by calling a new General Meeting approving the increase in share capital? Thereafter we will fulfill all formalities regarding filing of documents with Registrar of Companies. All the shareholders of the company unanimously agreed to it.

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5 Replies

HARDIK (COMPANY SECRETARY NCFM (Corporate Governance )) (664 Points)
Replied 30 November 2010

Take fresh approval and file forms.

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udit sharma (Company Secretary) (2303 Points)
Replied 30 November 2010

Hi...

As you said that the increase in the Authorised Capital was not reflected in the Books of Accounts, you can show an EGM in the Current Date and file the forms accordingly....

This is my opinion and views of eminent experts are welcome

God Bless

Udit Sharma

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 30 November 2010

Hi,

You should go for fresh approval of shareholders through GM for increase in AC. File the requisite forms with ROC without undue delay.

This course of action is very much advisable where paid up capital of the company is not more than Rs. 10 Crore.

Best Regards

Vaibhav Shukla (Company Secretary) (142 Points)
Replied 30 November 2010

Dear Shraddha ji,

As is evident from your query that approval of shareholders has been taken for increasing the authorised share capital but the same has not been acted upon as neither any filing has been done with the Registrar of Companies nor it has been incorporated in the books of accounts. In this case you can take a fresh approval of the shareholders in the general meeting and complete all the formalities with regard to the filing of the documents with the ROC.

Regards

ACS Vaibhav Shukla

CA Ayush Agarwal (Kolkata-Pune-Mumbai) (27186 Points)
Replied 30 November 2010

Originally posted by : Ankur Garg
	Hi, You should go for fresh approval of shareholders through GM for increase in AC. File the requisite forms with ROC without undue delay. This course of action is very much advisable where paid up capital of the company is not more than Rs. 10 Crore. Best Regards