I was thinking of this scenario and couldn’t fathom much. If there is a company X with authorized capital of NPR 1 arba. The issued and paid up capital now is around 70 crores. If the company gives bonus shares yearly, there will be time when paid up/issued capital equals authorized capital. What happens after this?
Is cash dividend the only option for such companies? Can the MOA (Memorandum of Authorization) be amended to increase the capital?