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Right issue

Juhi Pant (Company Secretary) (132 Points)

17 June 2014

Ours is Pvt. Ltd. Company wants to issue shares on Right Basis.

Can anybody send me the procedure under Companies Act, 2013.

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8 Replies

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 17 June 2014

1. Decide issue size & price per share

2. Increase authorised share capital (if necessary)

3. Pass Board resolution for the issue and approval of letter of offer

4. File MGT.14

5. Send offer letter & application form to all shareholders

6. Get subscripttion amount and make final list of valid applicants

7. Pass Board resolution for allotment & issue of share certificates

8. File PAS-3

9. Issue share certificates

10. Make entry in register of members

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Juhi Pant (Company Secretary) (132 Points)
Replied 17 June 2014

Thanks for the reply. Can you explain why Form MGT-14 is required to be filed when we are filing the board resolution in Form PAS-3 itself. Is Shareholders meeting also required to be conducted for right issue.

Juhi Pant (Company Secretary) (132 Points)
Replied 17 June 2014

One of our Private Company wants to issue shares only to one shareholder out of four shareholders, for that purpose can company issue shares on right basis by taking NOC/renunciation letter from existing shareholders.

Vandana J Doshi (Practising Company Secretary) (12562 Points)
Replied 18 June 2014

Hi Juhi, MGT 14 is to be filed as the same is required pursuant to sec 117 read with sec 179 (3)..... No, rights issue does not require shareholders meeting..... ANd for your last question, rights issue with renunciation rights is acceptable....in fact it is the only method requiring less compliances.... Regards

Juhi Pant (Company Secretary) (132 Points)
Replied 18 June 2014

Thanks for the reply

jayasingh (Practising Company Secretary) (26 Points)
Replied 03 July 2014

URGENT.

Can anyone please share draft Board resolution for allotment of shares to non existing equity shareholders when existing shareholder decline the offer of the company under right issue of the shares?

komal (cs) (25 Points)
Replied 05 July 2014

can pvt company allot shares on right issue basis to the directors/shareholders of the company, after taking renunciation letter from other shareholders. and is it required to file the letter of offer with roc . please provide the draft letter of offer and renunciation letter if possible.