Issue of right shares
This query is : Resolved
30 November 2011
Company A is Holding Co. of B. B avails loan and as security its shares, held by A, are pledged.
Now if B issue further shares on Rights basis than whether it should offer the same to the lender also?
If not then whether allotment of further shares to A will make any impact on the interest of the lender?
Regards,
Rishi
Now if B issue further shares on Rights basis than whether it should offer the same to the lender also?
If not then whether allotment of further shares to A will make any impact on the interest of the lender?
Regards,
Rishi
30 November 2011
As per my simple understanding new shares should be issued to the company A. Reason being lender is just the beneficial holder of the shares as pledge and he cannot be considered as owner of pledged shares.
For interest of lender please refer the pledge agreement.
For interest of lender please refer the pledge agreement.
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