alteration of capital

alteration of capital

a limited company may not issue more shares than are authorized by its memorandum of association. However, members of such a company may agree, by a provision in the articles, that the company's authorized capital maybe increased; such an increase may be made if power to do so is provided by its articles.
Mentioned in ?
References in periodicals archive ?
The European Parliament has approved a Commission proposal amending parts of the Second Company Law Directive covering the formation, maintenance and alteration of capital. In its plenary session on 14 March, the Parliament adopted a report by Piia-Noora Kauppi (EPP-ED, Finland) in its second reading, thereby backing the Commission's efforts to promote the competitiveness of European companies without eroding shareholders' rights.
A subsequent pronouncement, revenue ruling 67-125, established the "alteration of capital structure" rule, based on the proposition any expenditure related to a change in a corporation's capital structure must be capitalized.