Prodecure for increase in issued capital

This query is : Resolved

siva kumar (Querist)
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26 June 2009 A private company which is increasing the issued capital within the authorised capital limit.

whether ordinary resolution itself enough or any other procedure have to be complied.

Ankur Garg

Ankur Garg (Expert)
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26 June 2009 Yes, a Pvt Ltd company may increase its issued capital by issue further equity shares up to the limit of its authorised capital.

For further allotment of equity shares Return of allotment is required to be submitted u/s 75 by filing form-2 with concerned Registrar of Company.

Procedure

1. First convene Board Meeting for allotment of equity shares and pass necessary board resolution for allotment.
2. Download form-2 from MCA Site www.mca.gov.in
3. Fill form-2 and attach list of allottee.
4. Get form-2 certified from practicing CS/CA and upload the same on MCA Site.

In your case you are simply allotting equity shares to increase your issued capital hence no need to pass ordinary resolution by shareholders in general meeting.

Regards

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