SH-7: alteration of authorised share capital — workflow

Define the obligation before assigning the task

The company notifies alteration of capital or other specified section 64 events; an authorised-capital increase does not itself allot shares or bring cash into the company.

Current MCA webform workflow and field definitions in the retrieved official instruction kit; actual portal schema controls submission.

Related guide: Form reference and completed fields

Walk the event through the calendar

A fictional private company’s articles authorise capital alteration. Two members unanimously pass an ordinary resolution on 30 September 2026 increasing authorised equity capital from ₹20 lakh to ₹30 lakh, all shares ₹10. No shares are allotted in this example.

1. Establish the event and evidence

Check articles, applicable section 61 event and actual member resolution. Assess any separate constitutional amendment and its filing.

2. Prepare the correct document

Enter existing/revised authorised capital and resolution/vote facts; keep paid-up capital and securities premium separate.

3. Submit and follow through

Submit SH-7 with actual resolution/altered memorandum and applicable fee/stamp duty; preserve acknowledgement and updated master data.

Record the controls and reconcile the outcome

• 300,000−200,000 =100,000 additional authorised shares; ×₹10 =₹10 lakh increase. Paid-up capital remains ₹10 lakh.
• Section 64(1) gives 30 days after alteration: 30 September +30 days =30 October 2026 for this example.
• The kit’s ordinary-resolution validation wording on p9 appears to use a three-to-one comparison. Section 114(1) governs an ordinary resolution (votes for exceed votes against); section 114(2) governs the special-resolution three-to-one rule. Do not convert the kit wording into a statutory 75% rule for every capital increase.

Keep the source and example with the working papers

This is the same form, version and scenario as the linked detailed reference. The full field table is maintained there; this page concentrates on responsibilities, sequencing and evidence. No sample creates a DSC, professional certification, approval or acknowledgement. It is a static educational illustration with deliberately invalid synthetic identifiers.

Primary authorities and exact locators

• MCA SH-7 instruction kit, physical PDF pp8–15 purpose/capital fields and attachments; Companies Act sections 61, 64 and 114.
• Companies Act, 2013: the sections expressly identified in the form and explanatory workflow; source copy, read with the specific later rules linked here.

Close the task using the actual result

The kit’s ordinary-resolution validation wording on p9 appears to use a three-to-one comparison. Section 114(1) governs an ordinary resolution (votes for exceed votes against); section 114(2) governs the special-resolution three-to-one rule. Do not convert the kit wording into a statutory 75% rule for every capital increase.

Retain the actual submitted or issued version together with the source records described above. If the authority requests a correction or a required approval has not arrived, preserve that status and the response trail; a saved draft is not evidence of completion.