DELAYED IN SH-7 TO ROC

Hi Afreen,

If SH-7 (Increase of Authorized Capital) is filed late with the ROC, then:

Effective Date of Increased Authorized Capital:

• The effective date of the increase will be the date on which the ROC actually receives and processes the SH-7 form (i.e., the date of filing with ROC), not the date of the board/shareholder resolution.

• So, even if the resolution was passed earlier, the increased authorized capital is recognized legally from the date of filing with ROC.

Implications of Late Filing:

• Late filing penalty: You will be liable to pay penalties under the Companies Act for delayed filing.

• Legal validity: The company cannot issue shares or take any action based on the increased authorized capital before it is effective on ROC filing date.

• Backdating not allowed: The ROC does not accept backdating for SH-7 filing.