Increasing the Authorized Capital

As the company grows, its size of operation also increases. It may need more funds for new venture, expansion or diversification of business operations or to meet the expenditure requirements that may arise in future. The company may also go for merger or acquistion or corporate restructuring. These requirements can be met by increasing the authorized share capital of the company. The authorized share capital is the maximum amount of shares value which a company can allot to its shareholders.
The Company may increase its authorised capital by further issue of shares or conversion of debentures/loans into shares