A company can increase its authorized share capital subject to its Articles and the Companies Act by passing the required special resolution and recording the amendment with OCR.
OCR process
OCR’s company-administration guidance states that a company may alter its share capital by creating new shares and increasing authorized capital, consolidating or subdividing shares, or taking other actions permitted by section 56.
The company generally needs:
- an application;
- details of the proposed amendment;
- certified minutes of the special resolution;
- amended constitutional provisions;
- applicable fee payment.
Authorized capital is not the same as paid-up capital
Increasing authorized capital increases the ceiling for permitted share issuance. It does not automatically mean that new shares have been issued or paid for.