How to Increase the Authorized Capital of an Organization?
Step 1: Vetting of AOA & MOA
A company is required to check the respective AOA & MOA to know about the given limit of the authorized capital. In case the shares and the respective issues might be beyond the given limit, then the authorized share capital increase occurs.. Therefore, altering AOA turns out to be a viable solution for amending such provisions.
Step 2: Holding a Board Meeting
There should be an arrangement of a specialized board meeting for ensuring the approval of the board to increase the authorized share capital.
Step 3: Holding a Meeting of the Shareholders
The company should look forward to holding the AGM or EGM on the decided date for ensuring the approval of the given increase in the authorized capital.
Step 4: Informing the ROC
Once the shareholders have given approval for the same, the company can go forward with drafting the altered MOA for increasing the given capital. The company should inform the same with the help of the Form SH-7along with the MCA. It is expected that the form should be filled out within 30 days from the resolution date. Some of the essential documents that you need to submit are:
- AOA’s altered copy
- MOA’s altered copy
- AGM/EGM notice
- A true certified copy of Board Resolution for altering AOA
- A true certified copy of Board Resolution for altering MOA