Increase in Authorized Share Capital

Authorized share capital - also known as "entitled share” or "allowed share capital" - is the maximum number of shares that a company is authorized to issue or offer under the charter of that company. The authorized share capital of the company will not increase without shareholder approval.

Increase in Authorized Capital

To the company, authorized capital is the amount specified in the capital clause of the company's articles of incorporation. A company's authorized capital determines the number of shares a company can issue to its shareholders. If the company needs more capital, shareholders will need to change the capital clause through a special resolution of the General Assembly. In addition, increased authorized capital may be required to issue new shares or inject more capital into the company.

How to change the Authorized share capital?

Following is the process by which the authorized share capital can be increased

Checking the Article of Association.
Holding a board meeting.
Conduct an Extra-Ordinary General Meeting.
A filing must be done at the Registration of Companies.
Fresh Allotment of Shares.
Your authorized capital is increased.

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