Hi,
Our company Authorized & Paid-Up Capital is currently Rs. 1 Lac.
There are unsecured loans in the books of the company of Rs. 10 Lac.
Now, we need to increase the Authorized & Paid-up capital to the company to convert the unsecured loan to Share Capital.
We also need to incorporate 3 members into the company shareholding structure. Can members be incorporated in the company without being Directors?
Thanks.
Members may or may not be directors of the Company. It is not at all required for member to be a director of the Company.
Dear Mohit,
Status of a member and a director is totally different in a company.
You just have to check that the total no. of members should not exceed 50 in case of private companies. And there is no such restriction in case of public company.
Dear Mohit,
Status of a member and a director is totally different in a company.
You just have to check that the total no. of members should not exceed 50 in case of private companies. And there is no such restriction in case of public company.
But be sure, while incorporating the 3 person into the company, that sharers can only be issued to them if the existing directors not agree to take the new shares and they give their consent not to take further shares. only then the company can issue the shares to the other one except exiting. Moreover see the Article of Association, that what it says.
CAclubindia
