ISSUE AND CHANGE IN DENOMINATION OF SHARES.

Save Share

This query is : Resolved

CS.... (Querist)
Follow

26 June 2010 DEAR EXPERTS PLZ SOLV MY QUERY:

A private limited Co. was incorpotrated in 2009 with Rs. 5 Crores Authorized Share Capital which contain Rs. 1 crore Equity Share Capital and rs. 4 Crore Optionally convertible pref shares. The Paid up Capital is Rs. 1 lac equity shares which devided in 1000 equity shares of rs. 100 each.
Now thw Co. wants to sub divide its Equity shares face value to Ra. 10 each share from Rs. 100 each. and also after subdivision the Co. wants to increase its ASC to Rs 8 crore which contain Rs. 3.5 Crore in equity and Rs. 4.5 in pref shares. I have prepared the documents for sub division of eq shares and increase in ASC by making notice of EOGM and passing the O/R for both purposes. Now My query is that what should I do in case of paid up capital of Rs. 1 lac. should i have also pass an O/R in the same EOGM or not because from the consequence of subdivision in Authrised equity share capital from 100 to whether paid up equity wil effect or not?
Please reply AS SOON AS POSSIBLE or any other further clarification in this regard please do let me know.

Srikant

Srikant (Expert)
Follow

26 June 2010 Just get cool dear,
Do not get mess up.
Simple thing,,,,,,,1st Alter the denomination from 100 to Rs 10 for existing Eq shares and allot them 10,000 shares inplace of 1000 shares.,,,,,And pass necessary resolution for that...( hope you 'll do that)

Now complete the formalities for increasing Auth Sh Cap limit.........

And at this time only you need to show the break up of Auth Sh cap as 3.5 and 4.5 respectively.
You can do it in same meeting.

CS....

CS.... (Querist)
Follow

26 June 2010 thanx

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now