Question 1

How can a Pvt Ltd company increase share capital?

Accepted Answer

A Pvt Ltd company can increase share capital by passing a resolution in the board of directors meeting and obtaining approval from shareholders.

Question 2

How much is authorised capital for private limited companies?

Accepted Answer

The authorised capital for a private limited company can vary and is decided by the company during its incorporation.

Question 3

Can a private company alter its share capital?

Accepted Answer

Yes, a private company can alter its share capital by passing a resolution in the board of directors meeting and obtaining approval from shareholders.

Question 4

Is MGT 14 required for increase in authorised capital?

Accepted Answer

Yes, as per the Companies Act, 2013, filing of MGT 14 is required for increase in authorised capital.

Question 5

Can Authorised shares be increased?

Accepted Answer

Yes, authorised shares can be increased by passing a resolution in the board of directors meeting and obtaining approval from shareholders.

Question 6

How do I change the authorised capital of a company?

Accepted Answer

To change the authorised capital of a company, the company needs to pass a resolution in the board of directors meeting and file the necessary documents with the Registrar of Companies (ROC)

Question 7

Who decides the amount of authorised capital?

Accepted Answer

The amount of authorised capital is decided by the company during its incorporation and can be changed later by passing a resolution in the board of directors meeting and obtaining approval from shareholders.

Question 8

Can a company raise funds beyond its authorised capital?

Accepted Answer

No, a company cannot raise funds beyond its authorised capital.

Question 9

What happens if a private company has more than 50 shareholders?

Accepted Answer

If a private company has more than 50 shareholders, it is required to convert to a public company.

Question 10

What is the minimum authorised capital for a private company?

Accepted Answer

The Companies Act, 2013 does not prescribe a minimum authorised capital for private companies.

Question 11

How do you raise capital without losing control?

Accepted Answer

To raise capital without losing control, a company can consider options like debt financing, mezzanine financing, and revenue-based financing.

Question 12

What happens if you own more than 5% of a company?

Accepted Answer

If you own more than 5% of a company, you may have to disclose it in filings with regulatory authorities and may be subject to certain regulations and restrictions.

Question 13

Is Section 179 of Companies Act, 2013 applicable to private companies?

Accepted Answer

Yes, Section 179 of Companies Act, 2013 is applicable to private companies.

Question 14

How do you calculate share value in a private company?

Accepted Answer

To calculate share value in a private company, the value of the company's assets and liabilities, revenue, and profits can be considered

Question 15

When should the authorised share capital increase?

Accepted Answer

The authorised share capital should be increased when the company needs to raise additional funds or issue more shares to investors.

Increase Authorised Share Capital

FAQ's on Increase Authorised Share Capital

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