Face value of company shares

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Pravin Mishra (Querist)
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24 July 2012 Sir,

Face value of my company (listed company)is 10 who wants to consolidate it to 100 can we do this? is there any limitation on the face value of share of the company or we can keep it to any amount say 200 or 500?

please provide legal provisions governing the face value.

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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25 July 2012 You have to change the capital clause of MOA by passing Ordinary Resolution.

With the permission of shareholders by way of Ordinary Resolution you can change the denomination of shares and consolidate them.

Pravin Mishra

Pravin Mishra (Querist)
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25 July 2012 thank you, but sir can we increase the face of the shares to any amount or there is any limit to face value.

please provide the provision of company act governing the same,if any.

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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27 July 2012 The SEBI in its meeting held on March 19, 1999, considered the issue of standard denomination of equity shares issued by companies with a view to give flexibility to the companies for determining the same. The standard denomination for securities was limited to Rs. 10 or Rs. 100 in terms of Central Government circulars.

However, at any given time there must be only one denomination of the shares of hte Company.

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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