The share capital of a company means an amount of funds which a company can raise by issue of shares of its company but not exceeding the maximum amount mentioned in memorandum of the Company.
When a Company proposed to increases its subscribed capital by further issue of shares then it can either issue equity or preference shares through, right issue or private placement of shares.
Article of Association of the Company must not restrict the right to make such allotment and Authorise capital of the Company must have the limit to allot the required shares.
It helps to raise further Capital for the Company by allotment of additional shares.
They are not the debt capital and hence do not impose the liability for repayment.
Arrange and provide the required documents as the checklist shared
Calling and Holding of BM to approve the issue of offer letter to the person to whom the shares are proposed to be issued. (If the allotment of preference shares or allotment through private placement mode is required)
Calling and Holding of BM to allot the shares on reciept of funds from the person to whom the shares are required to be allotted
Form PAS 3 is required to be filed with MCA for allotment of shares
Authorised capital is a maximum share capital of the Company which sets limit within which the shares are issued by the Company.
Paid up capital are the shares issued by the Company to its shareholders for raising capital but not exceeding the Authorised capital.
Form PAS 3 is required to be filed with list of allottes and Board resolution for allotment.
The share certificate is required to be executed and circulated within 60 days of allotment of shares.
Issue of shares means offer of shares to the investor which may or may not get accepted and once the offer is accepted and consideration is received the allotment of shares take place.
Bhanu is a person to count upon, with his expertise in his domain and knowledge he brings on you can reach him with a problem any time. His appetite to listen and understand the issue makes him the man for the job. He is proactive, energetic and a resourceful guy. My best wishes to Bhanu and Startup seven for future endeavour.
Founder at Addensure Media LLP
Startup Seven is perfect to partner with in your startup or corporate journey. Seamless service and support provided by team is really helpful specially when you are trying to setup your venture. I would like recommend Startup Seven to every startup.
Founder Onmytap - NETWORK FOR PROFESSIONAL GROWTH
Bhanu is one of the most sincere and trustworthy person I have come across. He is extremely ethical and is completely customer focused. His hard work and dedication is commendable and with him handling the legal as well as taxation things are always in order and compliant. Keep up the good work Bhanu. Wishing you more and more success as you grow.
Co-founder, Executive - Brightsandz Clean Tech Pvt Ltd