AUTHORISED SHARE CAPITAL INCREASE
Share capital is a major source of funding for the companies. There can be various reasons for increase in authorised share capital of the company such as company may requires more funds for diversifying itself and its paid up capital is already at par with its authorised capital. In such situations companies are required to increase their authorized capital before increasing their paid-up capital by Edge Legal.
INCREASE IN PAID-UP CAPITAL
Healthy paid up share capital reflects corporate brand and Image of any company. Issuing of Share is a major source of funding for the companies.
There can be various reasons for Increase in Paid-up Share Capital of the company such as, company may require working capital for the purpose of diversifying or expanding its Business activities.In some cases to avail overdraft facility from bank, the company are required to Increase its capital to maintain Debt: Equity ratio.
Shares can be issued by the company by way of:
- Right Issue, if shares are allotted to the existing shareholder only. (Read our Article on Right issue on Knowledge Zone)
- By way of Private Placement, if shares are allotted to selected group of person.
- By way of public offer, if shares are issued to the public at large.