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Increase in Authorized Capital

Authorized capital is that element of a private limited company that helps in deciding the number of shares that can be issued. Usually, a new bee in the market has low authorized capital up to 1 lakh. This authorized capital amount isn’t enough to issue more shares. Let’s suppose that it has been raised, for the shares to be issued, the capital clause included in the Memorandum of Association should go through an amendment. This is done by passing a special resolution on the board.

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