Increase of Authorized Share Capital - Procedure
- Check the Articles of Association of the company to see whether necessary authority/powers is there to increase the authorised share capital of the Company.
- Issue the Board Meeting notice and Convene the Board Meeting to decide about the increase and to fix up the date, time, place and agenda for convening a General Meeting for passing of an Ordinary Resolution or Special Resolution, if so required by the Articles, for the same.
- Issue notices in writing at lease 21 days before the date of the meeting for the General Meeting with Explanatory Statement as required under Section 173 of the Companies Act 1956.
- Hold the general meeting and pass the necessary resolution with required majority.
- File the Form No. MGT-14 within 30 days for the Special Resolution passed at the General Meeting.
- File the Form SH-7 with the annexures the notice and board and general meeting resolution and make payment for the stamp duties online.
With the approval of the form SH-7 the change in authorised capital will get effected and can be checked at www.mca.gov.in/MCA21.
- The above mentioned form MGT-14 and form SH-7 is available at the Ministry of Corporate Affairs website.
- After the coming into force of companies act 2013, new forms were prescribed, earlier form 5 was used for SH-7 and MGT-14 is now used in place of form 23.