Chap 5 - Sources Of Finance

Question 1

Authorized sh capital

Answer 1

Maximum amount of share capital which can be issued

Question 2

Procedures to alteration of share capital

Answer 2

1. Authorised by articles (alteration must be authorised by articles)
2. Special resolution
3. File notice of alteration to registrar within 15 days

Question 3

Ways to alter share capital

Answer 3

Increase - relate to total amount
Cancel
Consolidate
Subdivided into smaller amount
Subdivided into ordinary and preference shares

Question 4

Variation in rights of shareholders (articles me hote hain)
How to vary?

Answer 4

•Special resolution
•3/4th majority of affected class
•file altered articles to registrar within 30days

Question 5

How to appeal against variation?

Answer 5

•Atleast 10% of affected class apply to court within 30 days
•Court shall pass order to cancel if material facts were concealed
change is harmful to interest of members
•Company shall forward copy of court order to registrar within 15 days
•Decision of court shall be final