Is it necessary that the share capital of private limited companies should remain constant every year?

Question

If you are not sure or are doubtful, please do not reply.

Answer 1

No. The share capital of private limited companies need not remain constant every year. The company can issue shares as and when it needs.

However, the fresh issue, plus the amount already issued should under no circumstances exceed the "Authorized Share capital" of the company which is specified in the Memorandum of Association and the Articles of Association of the Company.

In other words the issued capital of the company shall always be less than the Authorised Share Capital of the Company at any point of time.

Hope that answers your question

Cheers!!

Answer 2

I am very sure the share capital of private limited companies need not remain constant. As the company grows, it might need more capital, and the shareholders will often increase their shareholding by buying more shares in the company.

Answer 3

in any commercial company u have to run to stand still