denomination of shares

Hi Jyoti !

Paid up capital is nothing but part of authorised capital only. Hence it can not consist of shares of different  denomination than authorised capital.

Case mentioned by you is possible only if consolidation or division of shares have taken place earlier by following proper procdeure for the same.In that case only nominal capital and issued capital remain the same as before .(as per corporate laws and practice module for CS)though paid upcapital denomination is different.

However ,in no other case paid up capital can cross boundries of authorised capital.

Thanks a lot Mr. Gargi.

Can u tel me that now wat shuld we do?

means if we hve not followed any process of consolidation or division till date and also issue the shares of Rs. 10 each to the shareholders.

In this case can we divide the shares from back date and if yes wat is the process of it?

or if no  wat is the other remedy?

Dear Jyoti,

Pls. give some more details. for eg. when were the shares allotted, no. of the shareholders. Are all Promoters (Internal), or there are some outsiders also.

The situation may be different in case the Annual Return is filed with ROC with the said details as mentioned by you and also ITR with IT authorities.

Actully except in moa everywhere co. showed face value of Rs. 10 each since incorporation.In all places includine Income tax files and roc fies i.e. annual return

In that case, pls. check the share certificates and the accounting entry at the time of allotting shares, Also Form 2 filed to ROC. Also pls. check that initial subscripttion of shares was m,age at Rs. 10/- each by the Promoters at the time of incorporation of the Company. If the same is at Rs. 10/- each, then, there is a possibility that you may consider it as a priniting mistake in the MOA.