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share capital increment

Raviprakash (Chartered Accountant) (49 Points)

30 June 2010

procedure to tbe folloiwed and form in whcih increase in authorised share capital to be filed to ROC by a private limited.

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vivek (CS) (751 Points)
Replied 30 June 2010

CHECKLIST TO INCREASE THE AUTHORISED SHARE CAPITAL OF YOUR COMPANY

Consult the Articles of Association of your company to see whether they authorize the company to increase the share capital. If it does not authorize, complete proceedings to alter them accordingly.
Convene a Board Meeting after issuing notices to the directors of the company as per section 286 to decide about the increase and to fix up the date, time, place and agenda for convening a General Meeting and to pass an Ordinary Resolution for the same.
If the shares of your company are listed with any of the recognized Stock Exchange, then immediately after the Board Meeting intimate to the concerned Stock Exchange short particulars of the increase of capital.
Issue notices before at least twenty-one days from the date of the meeting for the General meeting with suitable Explanatory Statement.
Hold the general meeting and pass the Ordinary or Special resolution, as required under item 2 above.
If the shares of your company are listed with any of the recognized Stock Exchange, then forward three copies of the notice and a copy of the proceedings of the General meeting to the Stock Exchange.
If the resolution passed is a Special resolution, file the same with Explanatory Statement with the concerned Registrar of Companies in form No, 23 within thirty days, after paying the requisite fee prescribed under schedule X to the Companies Act, 1956.
File the notice of increase with the concerned registrar of Companies in Form no.5 within thirty days on which the Registrar of Companies will make necessary changes in the company’s Memorandum and Articles of Association.
While filing the above notice, the registration fees for the increased authorized share capital shall have to be paid electronically.
Make necessary changes in every copy of the memorandum and Articles of Association and in all other papers and documents.

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Vishal Dang ((Company Secretaries)) (93 Points)
Replied 30 June 2010

Dear

You may follow the following procedure to increase the authorised share capital

The Company is required to convene a Board Meeting approving the Notice convening an Extra-Ordinary General Meeting whereat the Approval of the Members is to be obtained for the Increase in Authorised Share Capital by Ordinary Resolution. Also to check if the Articles of Association is required to be altered regarding the Share Capital.

If required, Approval of Members is to be obtained for alteration of Articles by Special Resolution.

File for 23 for special resolution if required

File Form 5 for Application for Increase in Authorised share Capital.

Liasoning with the Registrar of Companies for the approval of Forms.

Regards

Vishal