Alteration of Share Capital
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Drafting of revised MOA
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Filing of SH-7 and MGT-14 form with MCA
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Filing of PAS-3 for allotment of shares
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Preparation of necessary documents and completing compliances as per Secretarial standards
All Inclusive price of
₹ 4,999/- Only
* Exclusive of Goods and Services Tax​
Understanding Share Capital:
Share capital, as per the Companies Act, 2013, refers to the total amount raised by a company through the issuance of common stock, equity stock, preferred stock, or preference share capital. It can be raised through public offerings like IPOs and FPOs or private placements. In accounting terms, the units of stock are known as “shares.”
Share capital consists of two essential components:
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Face Value: The nominal amount at which the shares are accounted for in the balance sheet. It represents the original price of the shares and is typically denoted in denominations such as ₹5, ₹10, or ₹100.
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Share Premium: The excess amount paid by investors over the face value of the shares. It represents additional paid-in capital and is reported in the balance sheet under shareholders’ equity.
Types of Share Capital:
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Authorised Share Capital: The maximum limit set by the company for issuing shares. It includes both issued and unissued shares and can be altered to raise additional capital.
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Issued Share Capital: The portion of authorized capital that has been offered to investors.
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Unissued Share Capital: The capital that remains unissued and can be issued by the company to raise funds.
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Subscribed Capital: The part of issued capital that has been fully subscribed by the public or investors.
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Called-Up Capital: The portion of subscribed capital that the company has called up and received from shareholders. Uncalled share capital represents the contingent liability of shareholders.
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Paid-Up Capital: The amount of called-up capital that shareholders have paid to the company.
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Reserve Share Capital: A special type of share capital sold only during liquidation or bankruptcy proceedings, with specific restrictions attached to it
List of Documents Required
When altering the share capital of a company, here's a list of documents commonly needed for altering the share capital of a company:
1. Board Resolution: A resolution passed by the board of directors approving the alteration in the share capital.
Shareholders' Resolution: If required by the company's Articles of Association or relevant laws, a resolution passed by the shareholders approving the alteration in the share capital.
2. Form MGT-14: Filing of Special Resolution with the Registrar of Companies (RoC), if applicable, within 30 days of passing the resolution.
3. Memorandum of Association (MoA): If the alteration affects the authorized share capital, an amended MoA reflecting the change should be prepared and filed with the RoC.
4. Articles of Association (AoA): If the alteration affects any provisions related to share capital in the AoA, an amended AoA reflecting the change should be prepared and filed with the RoC.
5. Digital Signatures: Ensure that the necessary documents are digitally signed by authorized signatories, such as directors or company secretaries.
6. Details regarding the revised share capital.
It's essential to consult with legal and financial advisors to ensure compliance with all relevant laws, regulations, and procedures when altering the share capital of a company. The specific requirements may vary depending on the jurisdiction and the nature of the alteration.
Conclusion:
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Alteration of share capital is a crucial process that allows companies to adapt their capital structure to meet their changing needs. By altering share capital, companies can issue new shares, convert stock, and make other changes to support their growth and comply with legal requirements.