Resolution by Shareholders Increasing Capital Stock is a legal document used by a company's shareholders to authorize an increase in the company's total number of shares of stock. This type of resolution is typically used when a company needs additional capital to finance operations or investment opportunities, or to meet the demands of a potential merger or acquisition. The resolution must be approved by a majority of the shareholders in order to be valid. There are two types of Resolution by Shareholders Increasing Capital Stock: 1. Subscription-Based Capital Increase: This type of resolution is used when shareholders agree to buy additional shares of the company's stock directly from the company. 2. Rights-Based Capital Increase: This type of resolution is used when the company issues rights to existing shareholders allowing them to purchase additional shares at a discounted price. The rights are usually transferable, meaning they can be sold or traded among shareholders.