Alteration in MOA

Pvt ltd 759 views 2 replies

aravindh

student

68 Points Joined July 2007

Hi please resolve.

its a case that my friend who is working as accountant of a foreign co has asked me.

The foreign company which is a public ltd in that country has started its operations in india with some authorised capital.Now it is on the go to increase its share capital.

Now the need arises for me to ask a question is whether the company shall first state the amount reqd to be raised as auth capital in its moa or the company could bring in its capital and then shall it state in the memorandum.

Which is the right way to do

Replies (2)

saurabh divekar

nil

78 Points Joined December 2009

i think, u have to first complete all the procedural formalities regarding alteration in M/A i.e. alteration in authorised capital n then only u can brought additional capital..

Mitali Agarwal

Company Secretary

638 Points Joined January 2009

I agree with Mr. Saurabh that the right way is to first complete all formalities for increase in auhtorised capital and alterations on MOA and AOA (if reqd.) and then to bring in capital.

But if the amount has been recd. it can be kept as share application money and allotment can be made only after alteration in MOA and filing Form- 5 & 23 (if AOA altered) with ROC.