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Alteration of Share Capital - 1 Video Lecture | Advanced Corporate Accounting - B Com

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FAQs on Alteration of Share Capital - 1 Video Lecture - Advanced Corporate Accounting - B Com

1. What is the process of alteration of share capital?
Ans. The alteration of share capital involves changing the structure of a company's share capital by increasing or decreasing the number of shares, their nominal value, or converting shares into stock.
2. When can a company alter its share capital?
Ans. A company can alter its share capital after obtaining approval from its shareholders through a special resolution passed in a general meeting.
3. What are the reasons for altering share capital?
Ans. Companies may alter their share capital to facilitate a merger or acquisition, restructure their capital, raise additional funds, adjust to changing market conditions, or comply with regulatory requirements.
4. What are the legal requirements for altering share capital?
Ans. Companies must comply with the provisions of the Companies Act, 2013, regarding the alteration of share capital, which includes obtaining approval from the National Company Law Tribunal (NCLT) in certain cases.
5. How does alteration of share capital impact shareholders?
Ans. Shareholders may be affected by the alteration of share capital through changes in their ownership percentage, voting rights, dividend entitlement, and overall value of their shares. It is essential for companies to communicate any alterations effectively to shareholders to ensure transparency and compliance.
89 videos|52 docs|22 tests
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