Change in Authorised Capital

Share capital (shareholders’ capital, equity capital, contributed capital, or paid-in capital) is the amount invested by a company’s shareholders for use in the business. Every Company requires fund to run its business be its working capital requirement or purchase of fixed assets. Company raises money by issuing shares to its existing shareholders or new investors.

A company can issue shares only within the limit as authorised under its Memorandum of Association (MOA). However, a company can increase its Authorised share capital by amending its MOA.

The Company having Share Capital if so authorized by the Article of Association, can modify the Share Capital. In this case, the Company needs to follow the procedures as prescribed under the Companies Act, 2013, which is quite lengthy and involves drafting of various documents. My Legal Clinic can help you in completing the procedures in most efficient ways which is also hassle free for you.

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