Section 61: Power of limited company to alter its share capital
What this section makes a company do, step by step, with the eForms and the days each step allows. Then the section itself, quoted in full.
The procedure, step by step.
Every step in order, the days each one allows, and the eForm it files.
Increase in Authorized Capital (S.61)
5 steps · about 111 days · SH-7, MGT-14| Step | Allows | Files |
|---|---|---|
| Board Recommends Increase | 7 days | — |
| Pass Ordinary Resolution at GM | 30 days | — |
| Pay Stamp Duty | 14 days | — |
| File SH-7 with ROC | 30 days | SH-7 |
| File MGT-14 | 30 days | MGT-14 |
Section 61 in full.
(1) A limited company having a share capital may, if so authorised by its articles, alter its memorandum in its general meeting to—
(a) increase its authorised share capital by such amount as it thinks expedient;
(b) consolidate and divide all or any of its share capital into shares of a larger amount than its existing shares:
Provided that no consolidation and division which results in changes in the voting percentage of shareholders shall take effect unless it is approved by the Tribunal on an application made in the prescribed manner;
(c) convert all or any of its fully paid-up shares into stock, and reconvert that stock into fully paid-up shares of any denomination;
(d) sub-divide its shares, or any of them, into shares of smaller amount than is fixed by the memorandum, so, however, that in the sub-division the proportion between the amount paid and the amount, if any, unpaid on each reduced share shall be the same as it was in the case of the share from which the reduced share is derived;
(e) cancel shares which, at the date of the passing of the resolution in that behalf, have not been taken or agreed to be taken by any person, and diminish the amount of its share capital by the amount of the shares so cancelled.
(2) The cancellation of shares under sub-section (1) shall not be deemed to be a reduction of share capital.
Quoted from the Companies Act 2013 (Act 18 of 2013) as amended, and checked against the MCA text on 17 August 2026. Reproduction of an Act is permitted under section 52(1)(q) of the Copyright Act 1957.
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