Alteration & allotment of share capital

Co Act 2013 805 views 8 replies

kapil

809 Points Joined November 2008

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

Replies (8)

prakash

Company Secretary

1352 Points Joined January 2012

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

kapil

809 Points Joined November 2008

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 Joined January 2012

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 Joined November 2008

Thanks a lot sir. Really Helpful :)

ACS Anjali Jain

SERVICE - CS

472 Points Joined July 2012

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 Joined January 2012

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.