I am working on increasing the share capital of a private limited company. To alter the memorandum,…
I am working on increasing the share capital of a private limited company.
To alter the memorandum, I ran across section 61(1)(a) of the Companies Act. It quotes:
"A limited company having a share capital may, if so authorised by its articles, alter its memorandum in its general meeting - increase its authorised share capital by such amount as it thinks expedient"
When I examined the articles for such authorization, I found it, however that it was vaguely written, or at least that I couldn't understand whether it had truly authorized the increase or not.
Could you clarify it for me?
The article quotes:
"The Authorised Share Capital of the Company shall be such amounts and be divided into such shares as may, from time to time, be provided in Clause V of the Memorandum of Association with power to increase or reduce the capital in accordance with the Company’s regulations and legislative provisions for the time being in force in that behalf with the powers to divide the share capital, whether original increased or decreased into several classes and attach thereto respectively such ordinary, preferential or special rights and conditions in such a manner as may for the time being be provided by the Regulations of the Company and allowed by law."