denomination of shares

The Face value of the shares in the Authorised share capital shall be Face value of the Issued, Subscribed and paid up share capital of the Company even for private limited company. (not denomination, it is face value of each share) Further, in case of anomaly in the issued, Subscribed and paid up Share capital , the only correction / rectification shall be done for the Share certificates already issued by the said private limited company.

You may call back the share certificate issued to the shareholders (only handful in case of private companies) and rectify with reference to the actual amount of money received vis-a-vis the issue of share certificate ( No. of shares X face value).

Of course, I am sure it will not happen in the case of public limited company/companies to be listed on stock exchange.

Hope this clarifies,

regards

Dear friend,

Thanks for the reply but the problem is company havin 30 lacs authorised capital i.e. 30000 equity shares of rs. 100/- each but paid up capital is 300000 equity shares of Rs. 10 each.

Now how to ractify this mistake?

It is nothing but exchange of new share certificate in cancellation of the old share certificate issued already. Pl ensure that old share certificate shall be cancelled and in the custody of the Secretary/MD Key Management Officer.

The new share certificate to be issued is as per the face value of the share as mentioned in the MOA and AOA with the approval of Board of Directors

Before issue call for the old one and collect the same and cancell it, and then issue the new share certificate.

regards

Thanks Mr. Daya nandan.......