The Company may discover a means to extend its company operations, whether in terms of scale, size, or structure, when the industry begins to pick up. It might take additional money and investments to realise that vision; in general, this is referred to as raising or changing the company's share capital. The amount of necessary funds may occasionally surpass the maximum amount of capital that was at the time approved. If a company's Articles of Association allow it to change its share capital, the company must follow the processes outlined in the Companies Act of 2013, which must be followed. Increases and decreases in share capital require the registrar of companies' approval, which can be obtained by submitting the necessary forms.
By changing the company's share capital, investors can reap all the rewards! Accounting Professionals at Legal Birbal will help you to plan effectively and affordably, assuring the successful conclusion of the procedure.
Change in Share Capital means modification in the number of shares
A firm can increase its share capital by issuing the Right Issue of shares if it wants to do so. After the organisation has passed a special resolution, the right Issue may be made available to current promoters or investors under a plan of employers' investment opportunity.
A crucial restructuring of an organization's share capital is known as capital reorganisation. Among major redesigns are: decrease in share capital Shares may be combined for this purpose, or the par value of the shares may be decreased.
A company may offer the Right Issue of shares if it wants to increase its paid-up capital. Subject to a specific resolution being adopted by the organisation, the right Issue may be made available to present investors under a plan of workers' investment opportunity.
Need Help ?