Changes in Authorised Capital

⇒ Authorised Capital is the maximum amount of share capital that a company is legally allowed to issue to its shareholders, as stated in its Memorandum of Association (MOA). If a company plans to issue more shares than the current authorised limit — for example, to raise funds or onboard new investors — it must first increase its authorised capital.

⇒ To do this, the company must follow a formal process which includes passing a board resolution, obtaining shareholder approval through a special resolution, and filing the necessary forms with the Registrar of Companies (ROC) — primarily Form SH-7. Once approved, the ROC will update the company’s records, allowing it to issue new shares up to the revised limit.