What is Increase Authorised Capital ?
Every business needs money to achieve its object; ideally, there is two kind of funding, one where the company need to return the investment along with interest, this is known as debt or loan. While another type of investment is, wherein the investor (read shareholder) puts their money in a company for a longer period, and in return is entitled to a share in the profits of the company, also known as the dividend, and expects an appreciation in the value of its investment. In a company form of business investment into the equity is limited to its authorised capital and the allotment of fresh shares are regulated regarding valuation and the first right of the existing shareholders of the company. The company have to follow provisions of its AOA and to obtain approval of the ROC while making any changes in its capital.