Authorized Capital is the amount mentioned in the capital clause of the Memorandum of Association of the company.
The authorized capital of a Company determines the number of shares a Company can issue to its shareholders. To the extent of the amount specified in capital clause, the company can raise capital.
To begin the process for altering authorized capital, a resolution must be passed by the Board of Directors.
In the Board Resolution, authorisation must be provided for altering the authorised capital of the company, such change must be ratify by the members of the company by way of ordinary resolution, and making the necessary changes to the MOA and AOA of the company.
File form SH-7 within 30 days of passing of Ordinary Resolution with the Registrar of Companies, with prescribed fees and along with following attachments:
- Notice of EGM;
- Certified True copy of Ordinary Resolution;
- Altered Memorandum of Association