Since authorized or registered capital of Happy Company Ltd. is fully issued the company must increase the same.
- The directors must satisfy themselves that the company?s articles authorize such increase pursuant to Section 65 (1 ) of the Act.
- The increase of capital must be authorized by an ordinary resolution of members in general meeting.
- Directors must therefore convene a general meeting to secure the resolution.
- A copy of the resolution must be delivered to the registrar for registration within 30 days of its passing so as to register the increase.
- For the purpose of allocating or issuing shares directors must satisfy themselves they have the power to do so.
- Directors are generally authorized to allot shares, otherwise the same must be authorized by an ordinary resolution of members in general meeting.
- The allotment in this case must be authorized by an ordinary resolution of members in general meeting and copy thereof must be delivered to the registrar for registration.
- In order to dis apply pre-emption rights, so that some shares can be issued to members of the public and not to existing members the same, must be authorized by a special resolution of members in general meeting.
-In order to issue shares to Mr. Karan in return for the plot, the directors require an independent valuation of the plot since consideration is non-cash.
- The report must be made or procured by a person qualified for appointment as auditor of the company and must be submitted to the company within 6 months before allotment
marto answered the question on February 6, 2019 at 08:23
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