How to Increase the Authorised Share Capital of a Company?

Описание: How to Increase the Authorised Share Capital of a Company?

1. First, refer to the Memorandum of Association and Articles of Association to check if the articles allow enhancing the authorized share capital and if the necessary powers or authority required have been provided.
2. Suppose it’s the case where the articles of association do not authorize an increase in the authorized share capital.
3. In that case, it becomes necessary to amend the provisions of the articles of association in the manner prescribed by the Companies Act, 2013 under section 14 to include provisions authorizing the company to increase its share capital, which can be done by passing a special resolution.
4. An increase in the authorized capital is subject to the approval of the shareholders of the company.