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Re : Authorised Capital

Jasjeet (in practice) (196 Points)

05 January 2011

Hi friends, I have a query dat company increased authorised capital in March, 2010 and after 10 days passed resolution for alltment of shares and allotted shares also. But Form 5 and Form 2 was filed in June, 2010 on different dates and , which means increase in authorised capital not intimated to ROC and further shares alloted. Is it valid.

One More query is company increased authorised capital on 30.12.2010 and noitce in Form 5 filed is still pending for approval. Can a company in its interim balance sheet as on 31.12.2010 can show is increased authorised capital or not.

Waiting for ur valuable replies. Thanx

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8 Replies

Jayashree S Iyer (Company Secretary) (3224 Points)
Replied 05 January 2011

Share allotment is very much valid. Non-filing of Form 2 or 5 will not invalidate share allotment. This is a procedural lapse which need to be rectified by filing returns with additional fee.

Form 5 may be pending for approval but your Balance sheet should reflect the increased authroised capital as approved by the shareholders.

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udit sharma (Company Secretary) (2303 Points)
Replied 05 January 2011

Hi..

Very much agreed with the expert

Ajay Mishra (Company Secretary) (74337 Points)
Replied 05 January 2011

Agree with Jayashree......

First of all you File Form-5 forMarch 10 and approved by ROC, otherwise your second Form 5 regarding second increased made in 31.12.2010 will not be approved by ROC.

Regards

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 05 January 2011

Originally posted by : Jayashree S Iyer
	Share allotment is very much valid. Non-filing of Form 2 or 5 will not invalidate share allotment. This is a procedural lapse which need to be rectified by filing returns with additional fee. Form 5 may be pending for approval but your Balance sheet should reflect the increased authroised capital as approved by the shareholders.

Fully Agreed...

Jasjeet (in practice) (196 Points)
Replied 05 January 2011

Thanx 2 all for ur valuable advice.

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PRAKASH CHANDER (ACCOUNTANT) (23 Points)
Replied 17 March 2011

1)WHAT IS AUTHORISED CAPITAL

2)SUBSCRIBED & ISSUED CAPITAL

3) MEMORANDUM OF ASSOCIATION

4) FULLY PAID UP SHARE

Neetu Agrawal (PCS) (213 Points)
Replied 18 March 2011

Dear All,

Bt hw cn company allott shares unless its Form 5 is approved. I mean Form 2 cn nt take the details if the paid up capital is greater than ASC...

and to update ASC form 5 need to be approved.......

Sudhir Garg (Service) (236 Points)
Replied 18 March 2011

Dear Neetu

What if Form 2 is also not filed??

As correctly said by Jayashree, filing of Form 2 and 5 are procedural steps. if company does not file any of these forms, it does not mean these activites are invalid. Filing of said forms are for information only and under present situatio, it is under automatic approval route.

Yeah, i agree you have to file form 5 first before uploading of Form 2.

regards- Sudhir