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Authorised Share Capital

MCA 751 views 1 replies

Vidisha Jain

CA FINAL

155 Points Joined May 2008

Hi frenz...

Following is the case

A company has an authorised share capital of Rs. 6 Crores (60 lakh shares of Rs. 10 each). The paid up capital is Rs. 4 Crores (40 Lakh Shares of Rs. 10 each). Now, the Company wants to allot shares at Rs. 25 each.

Can the company divide its authorised share capital of Rs. 6 Crores, i.e., 40 Lakh Shares of Rs. 10 each and 8 Lakh Shares of Rs. 25 each ???

If so, which form should be filed with ROC ?

Thanks in advance

Replies (1)

hrithvik raj

article/ca final

161 Points Joined September 2009

hi.. as per the alteration of share capital the authorised share capital of the co. can be increased and the shares of the co. can be subdivided also the shares can be altered of smaller or larger denomination.. the alteration of share capital cant be termed as reduction of share capital...