Increase Paid-Up Capital of The Company
Due to the whatever reasons, the new Management may want to increase paid-up capital of the Company as every shelf companies are registered with issued & paid-up capital of RM2 only. (2 ordinary shares)
In order to increase paid-up capital of the Company, the new management shall first deposit the CASH into the company’s bank account, being shares application monies received by the Company.
The new management will then furnish the “bank-in slip” to Company Secretary for his/her preparation of relevant documents.
The following are the procedures to increase paid-up capital of the Company:
1. Bank-in slips for paid-up capital to be increased
2. Company Secretary will prepare all relevant documents
3. Signing of documents by all new directors & shareholders
4. Submission to SSM for registration
Why bank-in slip is needed at the first place?
The following are extracted from the Section 48 of the Companies Act 1965:
“No allotment shall be made of any shares of a company unless the sum payable on application for the shares has been received by the Company. If a cheque for the sum has been received by the company, the sum shall be deemed not to have been received by the company until the cheque is paid by the bank.”
“Every director who knowingly contravenes or permits or authorises the contravention shall be guilty on an offence against this Act.“
Can a company increase paid-up capital without putting the money into the company’s bank account?
It is an legal offence in law and we are unable to increase paid-up capital of the company without receiving the evidence of cash deposited into the company’s bank account from the directors.
