PROCEDURE FOR SUB-DIVISION OF SHARES:
1) Authorization in Articles for subdivision of shares.
2) Conduct Board Meeting and get the approval of the Board for Sub-division of Equity Shares from the Face Value of Rs. …./- per share to Rs. …./- per share
3) File Form MGT-14 within 30 days from the date of passing of Board Resolution to Registrar.
4) Issue notice of Extra- Ordinary General Meeting to shareholders.
5) Conduct EGM and get approval from the Shareholders of the Company on the following resolution as Ordinary Resolution
- 1. Sub-division of Equity Shares from the Face Value of Rs. …./- per share to Rs. …./- per share
- 2. Alteration of Capital Clause of the Memorandum of Association (MOA)
6) File Form MGT-14 and Form SH-7 within 30 days from the date of passing of the resolution.
7) A company shall replace all the existing certificates by new certificates upon sub-division subject to compliance with clause (a) of sub-rule (1) rule 5, sub-rule (2) of rule 5 and sub-rule (3) of rule 5 of Companies (Share Capital and Debentures) Rules, 2014 (Manner of issue of share certificates).
Where a certificate is issued on subdivision, it shall be stated on the face of it and be recorded in the Register maintained for the purpose, that it is “Issued in lieu of share certificate No….. sub-divided” and also that no fee shall be payable pursuant to a scheme of arrangement sanctioned by the High Court or Central Government.
The particulars of every share certificate issued for subdivision shall be entered forthwith in a Register of Renewed and Duplicate Share Certificates maintained in Form no. SH 2 indicating against the name(s) of the person(s) to whom the certificate is issued, the number and date of issue of the share certificate in lieu of which the new certificate is issued, and the necessary changes indicated in the Register of Members by suitable cross-references in the “Remarks” column.
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