Companies Act Section 64 — Notice to be given to Registrar for alteration of share capital
CHAPTER IV SHARE CAPITAL AND DEBENTURES
Commercial / Corporate
Summary
Sub-section (1) sets out the situations in which a company must inform the Registrar about changes to its share capital. This applies when the company alters its share capital in any way allowed under section 61, when a Government order increases the company's authorised capital, or when the company redeems any redeemable preference shares. In each of these cases, the company must file a notice in the prescribed form with the Registrar within thirty days of the alteration, increase, or redemption, and must also file an altered memorandum along with that notice.
Sub-section (2) deals with what happens if a company fails to comply with the requirement in sub-section (1). In such a case, the company and every officer who is in default will be liable to a penalty of five hundred rupees for each day the default continues. This penalty is subject to a maximum of five lakh rupees for the company and one lakh rupees for an officer who is in default.
Official Text
(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 rupees in case of a company and one lakh rupees in case of an officer who is in default].]