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Alteration & allotment of share capital

kapil (-) (809 Points)

11 August 2015

Dear Learned members,

Request you to Please advice on the following matters :-

I am in the process of Filing SH-7 for increasing the authorized share capital of a company. Now, I need to know:-

1) Whether filing MGT-14 is mandatory before filing SH-7, in case where company independently increasing its share capital.?

and

2) how can I allot equity shares of a company to the persons other than the existing shareholders/existing shareholders. Please elaborate the complete process.

Thanks in advance

-Kapil Dudeja

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8 Replies

prakash (Company Secretary) (1352 Points)
Replied 11 August 2015

Dear Kapil,

if your company is increasing authorized capital without altering AOA/Passing Special resolution, need not to file Form MGT-14.

your Company have to follow section 42 and 62(1) (c) of CA, 2013, Procedure is enclosed

Attached File : 735705 20150811175255 private placement of shares series 23.pdf downloaded: 160 times

kapil (-) (809 Points)
Replied 11 August 2015

Thanks prakash sir for the reply. Really helpful. One more thing for increasing authorized capital, we also need to amend MOA. For amending MOA, is it necessary to file MGT-14?

prakash (Company Secretary) (1352 Points)
Replied 11 August 2015

Dear Kapil,

If your company amending MOA by passing special resolution, require to file form MGT-14 within 30 days from date of passing Special Resolution.

kapil (-) (809 Points)
Replied 11 August 2015

Thanks a lot sir. Really Helpful :)

ACS Anjali Jain (SERVICE - CS) (472 Points)
Replied 12 August 2015

if a private company wants to increase its paidup capital by way of right issue and the existing shareholders renounce their rights to someone else, in that case mgt 14 is not required. Am i right?

prakash (Company Secretary) (1352 Points)
Replied 12 August 2015

Dear Anjali,

As per Section 117 (3) read with Section 179 (3) (c) of CA, 2013, Company has to file MGT-14 within 30 days from date issue of any kind of securities.