Raising Authorized & Paid-up Capital: A Simplified Guide
The Process of Raising Authorized Capital and Paid-up Capital Explained
The below timeline is more viable or applicable:
When the Directors and Shareholders are same
of the Private Limited Company.
In Article of Association, it is already
mentioned that, Company can alter its share capital in MOA.
The
date which are taken below, are only for understanding purpose.
ISSUE
OF SHORTER NOTICE FOR BOARD MEETING
31.12.2019
ACTION
TO BE TAKEN BEFORE BOARD MEETING
Draft the Shorter Notice for the Board
Meeting
Draft the Agenda for the Board Meeting
Shorter Notice need to be signed by any of
the Directors
Signed Shorter Notice and Agenda need to be
send to all the Directors. (eg. Through Mail for Proof)
Draft EGM Shorter Notice
Draft Consent Letter for EGM Shorter Notice
Draft Letter of Offer for Right Issue
Draft Application Form
Draft Renunciation Form
Draft Form for Renounced shares
Draft
Consent letter for shorter period for Right Issue Offer
BOARD
MEETING
01.01.2020
ACTION
TO BE TAKEN
Attendance of Directors
Previous Board Meeting Minutes ( for
signature of Chairman)
Draft Board Minutes ( 01.01.2020 )
Circulate
Draft Board Minutes to all the Directors within 15 days of the Board Meeting
ISSUE
OF SHORTER NOTICE FOR EXTRA ORDINARY GENERAL MEETING
02.01.2020
ACTION
TO BE TAKEN
Send EGM Shorter Notice to all the
Shareholders
Draft Consent Letter for shorter notice of
EGM or receive Consent Letter for shorter notice of EGM from the Shareholder ( 95
% of total Shareholding)
Draft Certified True Copy for Alteration of
Share Capital, ( for Directors signature ), after the resolution is approved by
the Shareholder in EGM
Draft
Altered Memorandum of Association ( MOA ) ( Alteration of Share Capital )
HOLDING EGM
03.01.2020
ACTION
TO BE TAKEN
Attendance of Members
Company should check Whether Consent Letter
for Shorter Notice has been received or not
Draft EGM Minutes
EGM
minutes need to be signed within 30 days of the EGM
ISSUE LETTER OF OFFER
03.01.2020
FILING
OF SH-7 FOR INCREASE IN AUTHORISED SHARE CAPITAL
03.01.2020
ACTION
TO BE TAKEN
Fill the Form SH-7
Attach EGM Ordinary Resolution for Alteration
of Capital and Altered MOA
Affix the DSC of Director or Director and
Practicing CS/CA/ICWA as applicable in the form and upload the Form SH-7 at MCA
portal. It is a Non-STP form.
Form
SH-7 need to be filed within 30 days of passing resolution at EGM
APPLICATION FORM RECEIVED
07.01.2020
ACTION
TO BE TAKEN
Company should check whether application form
along with application money is received from all the shareholders
Company should also check whether Consent
letter for shorter period for Right Issue Offer has been received or not
Company
should also check, whether any Shareholder has renounced the share and for the
same Renunciation form has been received or not. ( if applicable)
ISSUE
OF NOTICE AND AGENDA FOR BOARD MEETING ( ALLOTMENT OF SHARES )
08.01.2020
ACTION
TO BE TAKEN
Draft the Shorter Notice for the Board
Meeting
Draft the Agenda for the Board Meeting
Shorter Notice need to be signed by any of
the Directors
Signed Shorter Notice and Agenda need to be
send to all the Directors. (eg. Through Mail for Proof)
Draft Certified True Copy (CTC) of Allotment
of Shares ( for signature of Director )
Draft
List of Allotees ( for signature of Director )
BOARD
MEETING
09.01.2020
ACTION
TO BE TAKEN
Attendance of Directors
Previous Board Meeting Minutes ( for
signature of Chairman)
Draft Board Minutes (09.01.2020)
Circulate
Draft Board Minutes to all the Directors within 15 days of the Board Meeting
FILING
FORM PAS-3
10.01.2020
ACTION
TO BE TAKEN
Fill the Form PAS-3
Attach CTC of Allotment of shares
Attach List of Allottees
Affix the DSC of Director or Director and
Practicing CS/CA/ICWA as applicable in the form and upload the Form PAS-3 at
MCA portal
(
PAS-3 need to be filed within 15 days of
passing resolution for Allotment of Shares at the Board Meeting )
ISSUE OF CERTIFICATE
11.01.2020
ACTION
TO BE TAKEN
Draft the Share Certificate ( SH-1)
Pay
the Stamp duty or Franking on the Share Certificate and issue the same to all
the allotees.
UPDATION OF REGISTER OF MEMBERS ( ROM)
Note : SH-7 is a Non-STP form. Sometime this form takes little bit more time to get approve, so therefore one needs to plan accordingly
CS Yogesh Hegde
As a part-time company law consultant, I offer guidance on corporate governance, compliance, and legal strategy. With a deep understanding of company law, I assist organizations in navigating legal complexities, drafting contracts, ensuring compliance, and resolving disputes. I am dedicated to helping businesses thrive while mitigating legal risks. Regards, CS Yogesh Hegde Kalyan | Mumbai
