Power of company to alter its share capital.—
(1) A company having share capital may, if so authorised by its articles, alter the conditions of its memorandum through a special resolution, so as to
(a) increase its authorised capital by such amount as it thinks expedient;
While filing form 7, we need to attach below-mentioned documents along with filed Form 7
When decided to increase authorize capital; we need to file form 7 but before that we also need to file form 26 Special Resolution. As Authorize capital can only be alter through special resolution.
For increasing paid up capital its mandatory that paid up capital should be always lesser than authorize capital. Therefore, whenever company decided to increase equity investment required investment through shares need to file form 7 before filing form 3.
Authorize capital has been mentioned in fifth clause of memorandum of Association. So, whenever need to increase authorize capital, need to attach updated amended memorandum of association .