The present capital of the Company is Rs. 10,50,00,000. The Company has reclassified its equity shares as class I and Class II. The classII shares include the equity shares alotted under investment agreement. The Company wants to make a Bonus issue to the Investor Company. The Company in order to issue bonus issue increased its authorised capital to Rs. 10,55,00,000. The funds are insufficient. Can the Company use the unpaid capital under class I shares for allotment under class II? OR can it reclassify the existing classes together with increase in authorised capital?
CAclubindia
