i. Which clause of Memorandum needs to be altered? ii. In which meeting the alteration can be approved?
Study the following case and express your opinion:
A public limited company has issued all the shares mentioned in its Memorandum as Authorised Capital. Now the company wants to make a public issue of 10,000 shares at a face value of ₹ 100 per share, to raise more funds for its expansion activities.
i. Which clause of Memorandum needs to be altered?
ii. In which meeting the alteration can be approved?
iii. Which document should the company issue to invite the public to buy its shares?
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1 Answers
i. The capital clause of the memorandum needs to be altered.
ii. A capital clause is altered by passing an ordinary resolution in a general meeting of the company.
iii. The prospectus is the document issued to invite the public to buy its shares.
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