Classification of Share Capital

ans 1.

other conditions required to be followed other than sec 94 to alter capital clause are:

1. articles of the company permits such increase.

2. a notice regarding class of shares affected by such new shares is required to be given to registrar.

3. MOA shall separately show the amt of equity capital and preference capital under different divisions. 

Dear Swati, 1.Sec 94 is applicable to public and private Companies therefore authorised capital (Consist of Preference Shares) can be increased by passing an ordinary resolution in general meeting and there is no different provision other than sec 94. 2.The Redeemable preference shares can be issued by Board itself (Kindly check with AOA of your Company whether members approval is required in this regard).

Thanks Mr.S. Saathesh and Mr. Ashish for your replies.. I am agreed with your views

But If the Company does not have any Prefrence Share as a part of its Authorised Capital . In that case also Ordinary Resolution will be paased  to increase its Authorised Capital by creating/ issung Prefrence Share

Or we need to pass Special resolution because we are creating a new Class of Prefrence share capital.

Dear Swati, An ordinary resolution is enough unless the Articles require special resolution in this regard.

Dear Swati,

 

m fully agreed wid S. Satheesh Kumar's reply..

 

1 more point i want to add that check ur AOA - Share Capital Clause.. if that para show the amount of authorised capital specifically, then SR is required to amend AOA.. file form23 for the same nd use the SRN in form5..