When a company proposes to increase subscribed capital, Section 62 is the starting point. The route may be rights issue to existing shareholders, ESOP, or issue to other persons subject to approvals and rules.
Section 62 applies where a company having share capital proposes to increase its subscribed capital by issue of further shares. The section sets routes such as offer to existing equity shareholders, employees under a scheme, or other persons subject to conditions.
| Route | Control |
|---|---|
| Rights issue | Offer existing equity shareholders in proportion as nearly as circumstances admit. |
| ESOP | Shareholder approval and scheme conditions need review. |
| Preferential/private issue | Approval, valuation, offer and PAS-3 controls matter. |
| Renunciation/decline | Track shareholder response and timelines. |
| Allotment closure | PAS-3, register and share certificate update. |
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Section 62 governs further issue of share capital.
No. Section 62 contains different routes including existing shareholders, employees under scheme and other persons subject to conditions.
Return of allotment and statutory register updates should be completed where applicable.