A limited company having a shares capital can alter the capital clause of the memorandum of association in its member meeting, and such alteration may include the following:

• Increase its authorised share capital by such amount as it thinks fit so;
•  all or any of its share capital can be consolidated and divided into shares of a larger amount than its existing shares;
• all or some of its fully paid-up shares can be converted into stock, and again reconvert that stock into fully paid-up shares capital of any denomination;
• Sub-divide the shares into shares of smaller amount than is fixed by the memorandum; and
• Cancel the shares on the date of passing of the resolution, which has not been or agreed to be taken by any individual and diminish the amount of its share capital by the amount of the shares so cancelled.

There must be an increase in the company's authorised share capital before issuing further new equity shares and increasing its paid-up share capital. Authorised share capital means the total value of shares a company can issue, while paid-up capital is the total value of shares the company has issued. Paid-up capital can never exceed authorised capital. Hence, if a company having an authorised capital of Rs.10 lakhs and paid-up capital of Rs.10 lakhs would like to induct new shareholders, it can do so either by:

First, to increase the authorised share capital, convene a Board Meeting by providing notice to the Director. At the Board Meeting, obtain approval from the Board of Directors for increasing authorised share capital. Then fix a date, time, and place for conducting an Extra-Ordinary General meeting to obtain approval of shareholders to increase authorised share capital and make changes to the MOA of the company.

First, obtain the approval of the Directors of Company present at the meeting to present the notice of Extra-Ordinary General Meeting to the shareholders. Then, based on the approval, present the Notice of Extra-Ordinary General Meeting to all shareholders, Directors and Auditor of the Company.