LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Right issue

SREENATH P. (Company secretary) (208 Points)

30 July 2015

Sir,

A Company Proposes to go for right issue, and given offer letter for 15 days. If all the Right holders including Renouncees subscribed by paying full amount/Rejected within shorter time (eg.3 days), Can the Company allot the right share immediately without waiting for 15 days.

Reply
Follow
Share

2 Replies

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 30 July 2015

Yes, refer to Sec.62(1)(a)(iii).

prakash (Company Secretary) (1352 Points)
Replied 30 July 2015

Dear Sreenath

For public limited companies, offer shall be opened for not less than fifteen days and there is exemption to private limited companies in case ninety per cent. of the members of a private company have given their consent in writing or in electronic mode, the periods lesser than those specified in the said provisions shall apply.

Hencefore, if your company has given the offer letter limiting time not less 15 days in the notice, it cann't make the allotment before than fifteen days, even though it receives all acceptance letter / decline letter from shareholders, it has to wait for 15 days for making allotment.