While issuing bonus share, the issued and paid up capital is increased than authorised capital due to bonus issue,
Then, by which amount the authorised capital should be increased ?
Example
Authorised capital:
1,00,000 equity shares @ 10 each
Issued and paid up capital:
90,000 shares @ 10 each
Bonus shares to be issued in the ratio of 1:4
Then how to increase authorised capital?
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Increase in authorised capital
Replies (6)
15000 shares @ 10 each
The company must thereby pass Special Resolution to increase the authorised capital and comply with the provisions laid down is S.94 and S.97 of the Companion Act, 1956
The company must thereby pass Special Resolution to increase the authorised capital and comply with the provisions laid down is S.94 and S.97 of the Companion Act, 1956
Thanks for your kind response
But how is it calculated?
I am talking about increase in authorised capital.
In this case bonus shares will be 22,500 shares.
The what is the authorised capital?
Should be increased by 22,500 shares or by 12,500 sharese?
Because the company has the balance of 10,000 shares before bonus issue
But how is it calculated?
I am talking about increase in authorised capital.
In this case bonus shares will be 22,500 shares.
The what is the authorised capital?
Should be increased by 22,500 shares or by 12,500 sharese?
Because the company has the balance of 10,000 shares before bonus issue
increase by 12500
Ok thank you so much
increase in authorized capital not only require special resolution but also they need to pay stamp duty as prescribed in the act
for stamp duty refer the attachment with the help of below link
https://www.google.co.in/url?sa=t&source=web&rct=j&url=https://www.mca.gov.in/MCA21/dca/efiling/eStamp_rate.pdf&ved=0ahUKEwiUhOHhmcjWAhWKNI8KHRmhB3QQFggtMAI&usg=AFQjCNFePbJEh6n-Jfse89a97voPZm6v9w
for stamp duty refer the attachment with the help of below link
https://www.google.co.in/url?sa=t&source=web&rct=j&url=https://www.mca.gov.in/MCA21/dca/efiling/eStamp_rate.pdf&ved=0ahUKEwiUhOHhmcjWAhWKNI8KHRmhB3QQFggtMAI&usg=AFQjCNFePbJEh6n-Jfse89a97voPZm6v9w
Thanks for support
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