Increase in Authorised Share Capital
Every organisation requires capital for its working capital, growth & other Business requirements. For Companies, Authorised share capital acts as one of the sources of Finance. Authorised share capital is the total value of shares a company can issue, while paid-up capital is the total value of shares the company has already issued & called up. In simple terms Authorised Share Capital is the limit upto which a Company is generally authorized to issue share capital. In case the Company needs more funds than existing Authorized Capital, then the said limit can be increased with the approval of shareholder, by passing Ordinary Resolution & by altering Capital Clause of its Memorandum of Association (MOA). Every such alteration shall take effect only if it is registered by the Registrar of Companies (ROC).
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