Authorized capital represents the maximum number of shares a company can issue, serving as a reserve for potential future expansion in its business endeavors. When there's a need to exceed this limit and issue additional shares, specific procedures must be followed. Typically, this procedure involves the submission of documents to the Registrar of Companies (ROC) and the organization of both board and general meetings within the company. Despite appearing relatively straightforward, this stage remains pivotal in corporate management as it allows for the allocation of new shares, potentially impacting the company's ownership and financial structure. Adhering to legal prerequisites when increasing authorized capital is crucial for maintaining legal compliance and upholding strong corporate governance practices. Seeking professional guidance and assistance to navigate this process can ensure the accurate execution of critical steps in accordance with pertinent laws and regulations.
The procedure of Increased Authorized Capital:-
