Increase in authorised capital and allotment of shares
This query is : Resolved
06 November 2012
Dear All,
I have a query... i am puting it in a example kindly resolve it...
ABC Co. is a private co. on 25.07.2012 they issued shares within the limit of Authorised capital by filing form 2 at that time authorised capital was Rs. 3 crores.
but in October they filed form 5 showing back dated 13.06.2012 for increasing Authorised capital from 3 crores to 5 crores.
Till now no query from ROC has been raised.
What to do... please help.
Will it affect in future?
I have a query... i am puting it in a example kindly resolve it...
ABC Co. is a private co. on 25.07.2012 they issued shares within the limit of Authorised capital by filing form 2 at that time authorised capital was Rs. 3 crores.
but in October they filed form 5 showing back dated 13.06.2012 for increasing Authorised capital from 3 crores to 5 crores.
Till now no query from ROC has been raised.
What to do... please help.
Will it affect in future?
ARUN KUMAR MAITRA
(Expert)
06 November 2012
A company may issue further shares within the limits of its Authorised Capital.Since, you have issued additional shares within the said limit ,probably RoC has not raised any objection.Increase in the limit of the Authorised Capital becomes effective from the date of passing of the Ordinary Resolution by the Shareholders.Filing of the Return with the McA is a mere formailty and for any delay in filing the same,they will impose penalty but the increase will not become invalid.
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06 November 2012
but in form 2 i had mention Authorised capital as Rs. 3 crores.
form 2 filed on 25.07.2012 but back dated EGM resolution on 13.06.2012 shows increased Authorised as Rs. 5 crores.
It means increase took place before allotment.
I am really worried.
form 2 filed on 25.07.2012 but back dated EGM resolution on 13.06.2012 shows increased Authorised as Rs. 5 crores.
It means increase took place before allotment.
I am really worried.
Ajay Mishra
(Expert)
06 November 2012
Hi
filing of form-2 and Form-5 is an intimation of capital updation with ROC.
If you have Filed Form-5 showing that our Authorised Capital is Rs. 5 crores but as on date of allotment of further shares or date of filing of Form-2 you have not filed Form-5 with ROC. It means your company have increased the authorised capital but has not intimated to ROC about such increase by Form-5. You have filed Form-5 late after filing of form-2 is not an issue. For this You have paid interest thereon.
In case of filing of Form-2 with ROC, you have given wrong information about authorised capital.
i will suggest you to file revised Form-2, if possible to update the current capital structure.
filing of form-2 and Form-5 is an intimation of capital updation with ROC.
If you have Filed Form-5 showing that our Authorised Capital is Rs. 5 crores but as on date of allotment of further shares or date of filing of Form-2 you have not filed Form-5 with ROC. It means your company have increased the authorised capital but has not intimated to ROC about such increase by Form-5. You have filed Form-5 late after filing of form-2 is not an issue. For this You have paid interest thereon.
In case of filing of Form-2 with ROC, you have given wrong information about authorised capital.
i will suggest you to file revised Form-2, if possible to update the current capital structure.
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06 November 2012
MCA master data is showing updated as per our current Capital structure. Even we have allotted another shares also after the above matter. Even this new allotment details also got update on MCA Master data.
So there's need of filing revised form 2?
So there's need of filing revised form 2?
ARUN KUMAR MAITRA
(Expert)
07 November 2012
Please file a revised Form-2 to rectify the mistake.
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07 November 2012
Thanks for solving my query... i am taking step towards revised form 2.
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