Notice to be given to Registrar for alteration of share capital
📚 Law Minded summary
Whenever a company alters its share capital, redeems preference shares, or has its capital changed by a government order, the Registrar has to be told within thirty days.
The notice includes the altered memorandum. The public register is only useful if it matches reality, and this is the section that keeps it matching.
(1) Where— (a) a company alters its share capital in any manner specified in sub-section (1) of section 61;
(b) an order made by the Government under sub-section (4) read with sub-section (6) of section 62 has the effect of increasing authorised capital of a company; or (c) a company redeems any redeemable preference shares, the company shall file a notice in the prescribed form with the Registrar within a period of thirty days of such alteration or increase or redemption, as the case may be, along with an altered memorandum. 1[
(2) where any company fails to comply with the provisions of sub-section (1), such company rupees and every officer who is in default shall be liable to a penalty of 2[five hundred rupees] for each day during which such default continues, 3[subject to a maximum of five lakh r upees in case of a company and one lakh rupees in case of an officer who is in default].]