A change in the share capital of a company refers to any alteration in its authorized, issued, subscribed, or paid-up share capital. This can involve increasing authorized capital, issuing new shares, consolidating or subdividing existing shares, converting shares, or reducing share capital. Such changes are often made to raise additional funds, restructure finances, or comply with legal and strategic requirements. The procedure typically begins with a board meeting to propose the change, followed by a special resolution passed by the shareholders. In cases involving an increase in authorized capital, the company must first amend its Memorandum of Association (MoA). The relevant forms, such as SH-7 for share capital changes, must be filed with the Registrar of Companies (ROC) within the prescribed timeline under the Companies Act, 2013. Compliance with applicable stamp duties and ROC fees is also required.
Conclusion: Share capital changes offer companies flexibility in financial planning and growth, but they must be executed in accordance with legal formalities to maintain corporate compliance.