Increase in authorised/paid up capital and its effect?

Pvt ltd 734 views 1 replies

Accountant

26 Points Joined January 2012

Hi,

I need to give 26% of share holding to a new person joining our company. The existing paid up capital is 1,00,000/-

If we increase the paid up capital to say 2,00,000/- what happens to the existing share holders. does their share holding drop?

Also, if I want the share holding for everyone to drop so that we can give the said 26% to the new person can we do that?

And if we want selective individuals to reduce their holding and selective individuals ot increase, how do we do?

Replies (1)

Company Secretary

4210 Points Joined July 2010

First of all the Shareholder can reduce their holding by way of transfer.

You want to increase the your paid up capital, for that ensure that your authorised capital permits you to do so.

You can allot the share to the third person.Thus it will dilute the holding in terms of percentage of the existing one.

Your are not logged in . Please login to post replies

Click here to Login / Register