We have passed the special resolution in the Extra-Ordinary General Meeting for increase in Authorised Share Capital of a listed company. Now the company does not want to go ahead with the increase.
How can i rescind the resolution?
It would require the share holders approval once again.
Do i need to file the Form 5 and Form 23 meanwhile till i again take the shareholders approval for rescinding the increase? what will be the consequences of not filing the form 5 and 23?
Hello,
I think by convening a EGM and passing the resolution by shareholder u can rescind the earlier resolution.
U can register the same with ROC by filing a form 23.
That is just my point of view rest comments of learned members are solicited.
Regards
Nidhi
| Originally posted by : dipali shinde | ||
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We have passed the special resolution in the Extra-Ordinary General Meeting for increase in Authorised Share Capital of a listed company. Now the company does not want to go ahead with the increase. How can i rescind the resolution? It would require the share holders approval once again. Do i need to file the Form 5 and Form 23 meanwhile till i again take the shareholders approval for rescinding the increase? what will be the consequences of not filing the form 5 and 23? |
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Hi Dipali
I stand by to Nidhi's view.
Call EGM, and rescind the earlier resolution by passing special resolution again.
File Form 23 with ROC ( where you have cancelled earlier resolution).
No need to file Form 5 & 23 for earlier resolutions in my view.
Other views solicited
regards
Santosh Shah
I think form 23 needs to be filed for both the resolution
As if you haven't informed the ROC regarding first special resolution how can you rescind that ...how the ROC will take effect of rescinding of earlier resolution which is not been informed............
As regard form 5 is concerned that need not to filed as there is no increase in authorised capital.....
others views are welcome
CAclubindia
