Hello Fam,

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?

More at: r/NepalStock by reditholic

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