Share certificates

Others 832 views 1 replies

vaibhav

CA & CS

577 Points Joined February 2008

Hi,

Can denomination of share certificates be changed ? Suppose company xyz has paid up capital of 1 lakh and issued 10 share certificates of denomination 10000.

Now the company has issued bonus of 20,00,000 ---- now there is need to issue share certificate for 20 lakhs.

Now my query is can i issue share certificate of denomination 50000 in place of 10000 ?

Replies (1)

P C Agrawal

Registered independent director Past Ch

8229 Points Joined March 2007

It will require amendment of capital clause of Memorandum. You can pass resolution for sub-division of equity shares and then issue share certificates accordingly.