NOTICE TO REGISTRAR FOR ALTERATION OF SHARE CAPITAL

According to Section 64 of the Companies Act, 2013 as discussed earlier here, Where—

(a)  a company alters its share capital in any manner specified in sub-section (1) of section 61;

(b) an order made by the Government under sub-section (4) read with sub-section (6) of section 62 has the effect of increasing authorised capital of a company; or

(c)  a company redeems any redeemable preference shares,

the company shall file a notice the prescribed form with the Registrar within a period of thirty days of such alteration or increase or redemption, as the case may be, along with an altered memorandum.

Rule 15 of the Companies (Share Capital and Debentures) Rules 2014 prescribes, “Where a company alters its share capital in any manner specified in sub-section (1) of section 61, or an order is passed by the Government increasing the authorized capital of the company in pursuance of sub-section (4) read with sub-section (6) of section 62 or a company redeems any redeemable preference shares, the notice of such alteration, increase or redemption shall be filed by the company with the Registrar in Form SH – 7 along with the fee.”

Form SH – 7:

This is an E – Form to be filed with the Registrar of the Companies. The Form may be filed for following purposes:

1. Increase in Share Capital independently by company
2. Increase in number of Members
3. Increase in share capital with Central Government Order
4. Consolidation or division etc.
5. Redemption of redeemable preference shares

The Form needs information of type of resolution, date of meeting and Service Request Number (SRN) of Form MGT – 14. Further, the Form asks details of Existing and Revised share capital with increase and decrease. In case of Government or Tribunal order, details of the order shall be given.

In case of consolidation, conversion, Reconversion, subdivision, cancelation or reclassification details thereof shall be given.

The Form need detailed breakup after the event requiring filing of this form. Where stamp duty is applicable, details of payment of stamp duty shall also be entered.

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