Introduction As the business expands, it could think about growing in terms of operations, size, scope, or structure. It might be necessary to infuse more cash into the company to realize that goal, which would increase share capital. Occasionally, the required capital may surpass the current allowable capital limit. Authorized capital is the maximum amount of capital for which the Company is permitted to issue Shares to its shareholders. In this article, we will delve into “What is Alteration of Share Capital?”, “Types of Alteration of Share Capital,” and “The Process for Alteration of Share Capital.” What Does the Alteration of Share Capital Mean? The term “alteration of share capital” describes the act of changing the structure or composition of a company’s share capital. It involves changing the rights to existing share classes as well as the overall number of shares that the company issues. This change can be made in numerous ways, including dividing or consolidating current shares, changing the authorized share capital, or converting shares from one class to another. These changes may be made for many reasons, such as raising capital, redistributing ownership, or responding to evolving business requirements. The Articles of Association (AOA) must approve the Change in Share Capital Clause This is an important decision that needs to be made legally and by regulations to protect shareholder interests and uphold corporate transparency. Various Types: Alteration of Share Capital Section 61 of the Companies Act of 2013 states that the alteration in share capital can be done in 5 different ways: Ads by Ads by Spike In Authorized Capital: Authorized capital can also be referred to as nominal or registered capital. This sum of money is required for establishing a business. The company may enhance its share capital by updating the Memorandum of Association’s capital clause. Consolidation of Shares: This involves creating a single, bigger denomination share by combining multiple smaller denomination shares.