Change Share Capital

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Change Share Capital Process

What is Share Capital?

The term "Share capital" means the money that a company raises through the issuance of common or preferred stock. With additional public offerings, the amount of share capital or equity financing that a firm has can change over time.

What Documents required for change in Share Capital?

1. Declaration of EGM with the descriptive report;

2. Altered MOA or Memorandum of Association

3. Duplicate of the resolution passed at the general meeting of the associates;

4. Modified AOA or Articles of Association

5. Certificate as a proof of new capital arrangement and class of shares introduced consolidated or divided;

6. A certificate copy of Board resolution for modified in AOA

7. A copy of Board resolution for modified in MOA

8. A valid certified copy of the resolution of Shareholders

9. Two duplicate copies of the application

10. Copies of audited balance sheets for the preceding three years;

11. Resolution for allowing such consolidation or division and furnishing explanation for the equivalent;

12. Legal document authenticating the petition.

13. Bank draft confirming the payment of request fee.

14. The enforced Vakalatnama or Memorandum of appearance along with a copy of the Board's Resolution, whatever is needed

Can a company spend or use its share capital?

If the company authorized by its articles or AOA.So, a company may utilise its share premium account or capital redemption reserve to fund a business issue of wholly or partly paid-up bonus shares in ratio to their existing shareholdings.

what are the charges paid for Change in Share Capital?

Charges to be paid for Share Capital Rs. 9,999.

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