A company limited by shares can alter the capital clause of its Memorandum in any of the following ways provided that such alteration is authorized by the articles of association of the company
The modification of the capital of the company in any of the way specified above can be done by passing a resolution at the general meeting of the company and does not need any confirmation by the court.
Reduction of the share capital can be effected only in the method specified in Section 100-104 of the Act or by way of buyback under Section 77A and 77B of the Act. Notice of modification to share capital is required to be filed with the registrar of the company in Form no 5 within 30 days of the alteration of the capital clause of the MA. The Registrar shall record the notice and make necessary modification in Memorandum and Articles of Association of the company. Any failure in giving notice to the registrar renders company and its officers in default legally responsible to punishment with fine which may extend to the Rs50 for each day of default.
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