pre-emptive rights
This query is : Resolved
28 August 2010
respected members
what is meant by pre-emptive rights?
what is meant by pre-emptive rights?
28 August 2010
Hi,
Let me answer you in the context of company law.
As per section 81 for further issue of equity shares --- new shares must be offered to the existing shareholders proportionately as per their existing shareholding.
This is the pre-emptive right of existing shareholders to have new shares over the new shareholders.
Regards
Let me answer you in the context of company law.
As per section 81 for further issue of equity shares --- new shares must be offered to the existing shareholders proportionately as per their existing shareholding.
This is the pre-emptive right of existing shareholders to have new shares over the new shareholders.
Regards
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