Alteration in Capital under S71 Form
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People also ask
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What are the alterations of share capital?
Alterations to share capital. Purchase of company's own shares. Any financial assistance for the purchase of shares. Any change to the nature of the company's business or the commencement of a new business by the company.
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What is the variation of share capital?
Variation of Share Capital The Company may from time to time by Ordinary Resolution increase its capital, consolidate its shares or any of them into a smaller number of shares, sub-divide shares or any of them into a larger number of shares or cancel any shares not taken or agreed to be taken by any person.
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What is an alteration of capital?
An increase, reduction, or any other change in the authorized capital of a company (see share capital). If permitted by the articles of association, a limited company can increase its authorized capital as appropriate.
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What is alteration in authorized capital?
Thus, one can summarise, in order to increase the authorised share capital of a Company, the articles of association must authorise to do the same, the memorandum of article shall be altered and after passing of the resolution of shareholders, the Company must file the e-form SH-7 with the Registrar of Companies (ROC) ...
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What is required for alteration of capital clause?
Section 61 of the Companies Act, 2013 provides that a limited company having a share capital may, by passing an ordinary resolution in a general meeting, alter the capital clause of its memorandum; provided authority to alter is given to it by its articles of association.
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What is the form for alteration of share capital?
SH-7 along with the fee. Purpose of the eForm Whenever a company alters its share capital/ number of members independently or increases the share capital by conversion of debentures/loans due to order of Central Government, then a return shall be filed with the registrar within 30 days of such alteration or increase.
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What changes share capital?
Share capital is the money a company raises by issuing common or preferred stock. The amount of share capital or equity financing a company has can change over time with additional public offerings.
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What are the 4 modes of alteration of share capital method for the internal reconstruction of a company?
Alteration of share capital may involves the following : a) Increase in share capital. b) Consolidation of shares of smaller denominations into shares of higher denomination. c) Sub division of shares into shares of smaller denomination. d) Conversion of shares into stock.
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