right issue
This query is : Resolved
28 April 2009
A Ltd. is having 40% shares in B Ltd.
Now B Ltd wants to enhance its capital by right issue.
but the co. don want to issue more shares to A Ltd.
and finally co. issue right shares but not to A Ltd
is it valid
plz give reason
Now B Ltd wants to enhance its capital by right issue.
but the co. don want to issue more shares to A Ltd.
and finally co. issue right shares but not to A Ltd
is it valid
plz give reason
29 April 2009
No, the stance taken by B Ltd. is not valid.As Company A Ltd. holds equity shares in B Ltd, A ltd. has the right to take part in the further offering made by B ltd. in the form of Rights Issue, in this case.
B Ltd. cannot come up with a Rights Issue if it doesnt want to offer such shares to A Ltd.
B Ltd. cannot come up with a Rights Issue if it doesnt want to offer such shares to A Ltd.
30 April 2009
THEN what about special resolution ??????//
in bod meeting
in bod meeting
02 May 2009
This allotment of shares by B ltd is not valid at all. It is clear cut violation of section-81(1).
If B Ltd don't want to issue further shares to A Ltd. then the only way out is preferential issue u/s 81 (1A) by passing Special Resolution.
Regards
If B Ltd don't want to issue further shares to A Ltd. then the only way out is preferential issue u/s 81 (1A) by passing Special Resolution.
Regards
03 May 2009
THANK U SIR
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