Procedure for increasing the face value of shares

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2012 The authorised capital of our company is Rs.3,00,00,000/- consisting of 30,00,000 Equity Shares of Rs.10/- each and the paid up capital is Rs. 51,00,000/- consisting of 5,10,000 equity shares of Rs.10/- each. Now we want to increase the paid up capital of the company by Rs.51,00,000/- by increasing the face value of the shares from Rs.10/- to Rs.20/- thus keeping the no. of issued shares as it is. Can anyone provide me the checklist and procedure for increasing the face value of shares. Also whether this will amount to consolidation of shares or anything else??

Plz its urgernt.

Srirang Mahabhagwat

Srirang Mahabhagwat (Expert)
Follow

03 January 2012 Dear Member,

The same can be done by passing a resolutions in the General meeting. Refer to Section 94(1)(b)of the Companies Act...

Jiten Gupta

Jiten Gupta (Expert)
Follow

03 January 2012 As per my view procedure for this would be as follows:

1. Convene a BM and increase paid up capital by Rs. 51,00,000.
2. File form 2 within 30 Days.
3.Convene a BM for calling General meeting
3. Convene a general Meeting and pass necessary resolution for consolidation of share capital U/S 94(1)(b).
4. alter MOA in General Meeting by passing ordinary Resolution.
5. File form 5 with altered MOA.

other views are solicited..

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