Incresing fund by issue of shares to exisitig shareholders
This query is : Resolved
21 April 2015
we want to increase fund by issue of shares to existing shareholders.
what is the procedure
what is the procedure
27 April 2015
When shares are offered to the existing shareholders, it is called the Right issue and shares if taken are known as Right Share.
Procedure for Right Issue:
Company will provide Right in proportion, to the paid-up share capital and send letter of offer.
offer shall be made by notice specifying the number of shares offered
Time to reply will be minimum 15 days and maximum can be 30 days
If not accepted offer shall be deemed to have been declined
Offeree (i.e. Existing Shareholder) can re-announce the right in favor of other person, unless Articles restricts.
If existing shareholder doesn’t show interest than company can issue further shares to Public.
The notice of offer of shares shall be dispatched through registered post or speed post or through electronic mode to all the existing shareholders at least 3 days before the opening of the issue.
Procedure for Right Issue:
Company will provide Right in proportion, to the paid-up share capital and send letter of offer.
offer shall be made by notice specifying the number of shares offered
Time to reply will be minimum 15 days and maximum can be 30 days
If not accepted offer shall be deemed to have been declined
Offeree (i.e. Existing Shareholder) can re-announce the right in favor of other person, unless Articles restricts.
If existing shareholder doesn’t show interest than company can issue further shares to Public.
The notice of offer of shares shall be dispatched through registered post or speed post or through electronic mode to all the existing shareholders at least 3 days before the opening of the issue.
29 April 2015
thanks for reply
if company increase its authorized capital what effect it has on income tax
if company increase its authorized capital what effect it has on income tax
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