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Asked by Jeeba on :Mar. 23, 2018

I am working on increasing the authorised share c…

I am working on increasing the authorised share capital of private company. And since such increase…

I am working on increasing the authorised share capital of private company. And since such increase is exclusively governed by section 61, I referred to the section at once.

However, section 61 does not specify what kind of resolution should be passed by shareholders to increase the authorised share capital ie. ordinary or special resolution.

Will an ordinary resolution suffice? Or Is it necessary to pass special resolution in this case??

0

Chiranjibi May. 21, 2018

You are right to refer section 61 of the companies act.

An ordinary resolution shall suffice in your case. There is no need to pass a special resolution for increasing the authorized share capital of a private limited company.

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