Hi,
A pvt limited company started with 5 Lakh authorized capital, and 1 Lakh paid up capital. The company started with only 2 directors who invested 90,000 and 10,000 respectively and hence hold 90% and 10% shares since the start.
Now, after two years of successful business, a third director wants to join by investing 5 Lakh Rupees.
How will the new share ownership be decided among the three directors in this case?
Since during the 2 years of successful business, the company has say 20 Lakhs in its bank account (or in other assets).
1) With the new applicant director willing to join with 5Lakh capital, how many shares (in %) will all three directors-cum-shareholders have?
2) How will authorized capital and paid up capital be changed? Will it be 20 Lakhs (or 20 + new 5 =25 lakhs) for paid-up capital, or 20Lakhs (or 25 lakhs) for authorized capital, or will they remain same as earlier?
Thank you.
CAclubindia
