Infuse More capital in the Company and avoid taking financial assitance.  

Share capital forms the part of Memorandum of Association of a company (MOA). In order to maintain financial decorum, concept of authorised share capital is laid down which is defined as the maximum value of share capital that the company is legally authorised to issue to its shareholders. Paid-up capital is defined as the total value of shares the company has already issued.

The paid-up capital cannot at any time exceed the authorized share capital. Thus, the need arises to increase authorized share capital.

Quick insights into compliance requirements:

• Verify whether Articles of Association (AOA) of company authorizes such increase
• Board Resolution for an increase in authorized share capital and for modification in the capital clause of MOA required.
• Consent of members by the way of ordinary resolution required.
• Compulsorily statutory forms filing within the time frame with concerned ROC.