Section 64: Notice to be given to Registrar for alteration of share capital

Companies Act • Official Statutory Text & Practice Guide

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Act 2013
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Legal Commentary & Landmark Judgments: Section 64

Section 64 of the Companies Act, 2013 obligates a company to provide formal statutory notice in Form SH-7 to the Registrar within thirty days of any alteration of share capital, redemption of preference shares, or capital increase, backed by continuous per-day financial penalties.

  • Trigger Events for RoC Notification: Notice must be filed whenever a company: (a) alters its share capital under Section 61(1); (b) increases capital pursuant to Central Government orders under Section 62(4)/(6); (c) redeems any redeemable preference shares; or (d) increases capital under Section 62.
  • Thirty-Day Statutory Filing Window: The company must file Form SH-7 along with an altered copy of its memorandum of association with the Registrar within thirty days of the passing of the resolution or occurrence of the event.
  • Continuous Per-Day Financial Penalty: Default in filing Form SH-7 attracts a penalty under Section 64(2) of five hundred rupees for each day the default continues, subject to a statutory maximum of five lakh rupees for the company and one lakh rupees for every officer in default.
Key Landmark Precedents:
  • Registrar of Companies v. Orissa Chemical Industries Ltd., (1978) 48 Comp Cas 440 (Ori): The Orissa High Court held that filing notice of increase of capital with the RoC is a mandatory compliance duty; failure to file the prescribed statutory return within thirty days constitutes a continuous default under company law.
  • Ranbaxy Laboratories Ltd. v. Anand Transport, 2002 (3) CTC 203: Affirmed that corporate resolutions altering capital take effect inter se the company and shareholders from the date of passing, but formal recognition in public records and third-party enforceability requires statutory filing with the Registrar.
  • Union of India v. C.K.P. Co-operative Bank Ltd., 2001 SCC OnLine Bom 403: Held that procedural defaults in reporting capital alterations are administrative omissions capable of compounding under Section 441 upon demonstrating bona fides and clearing all accrued additional filing fees.
Courtroom Practice & Strategic Litigation Guidance:

When filing Form SH-7 beyond the 30-day statutory window, the MCA portal automatically levies additional fees and triggers Section 454 adjudication. To protect directors from compounding proceedings, file a petition under Section 441 before the Regional Director (RD) or NCLT explaining administrative delays and establishing that the general meeting was properly convened.