Condition for Right issue CHECKLIST FOR RIGHT ISSUE ⇒ Check weather articles authorise right issue:- If not, take steps to increase the authorised capital. ⇒ Letter of offer:- Finalize the draft letter of offer for issuing equity shares through right issue. No specific format of Letter of offer is prescribed. However letter of offer shall contain offer price, face value of shares, Mode & terms of payment and right to renounce. ⇒ Board Meeting:- Hold Board Meeting and pass resolution for approval of letter of offer. Notice of BM to be sent atleast 7 days before date of BM. ⇒ Filing of MGT-14 :- File MGT-14 within 30 days from passing board resolution. (This provision is not applicable to private companies). ⇒ Dispatch letter of offer:- Dispatch Letter of Offer through registered post, speed post or electronic mode to all existing shareholders. Letter of Offer to be sent atleast three days prior to opening of issue. Note:- Hand delivery of letter of offer is not permissible. ⇒ Time period of open offer:- Offer to be kept open for minimum 15 days upto 30 days. Provided that in case of a private company, if ninety percent of members have given their consent in writing or in electronic mode, the period lesser than those specified shall apply. ⇒ Deemed refusal:- No Intimation in 30 days would be deemed to be refusal of the offer. ⇒ Another Board Meeting:– Hold another Board Meeting to approve issue of shares to shareholders who have opted for the Right Issue of shares. Notice of BM to be sent atleast 7 days before date of BM. ⇒ Issuance of shares:– Issue shares in accordance with the list of allottees approved in the Board Meeting. ⇒ Filing of PAS- 3:- File PAS-3 within 30 days from date of allotment – return of allotment. ⇒ Issuance of share certificates:- Issue Share Certificate within 2 months from date of allotment
Condition for Right issue CHECKLIST FOR RIGHT ISSUE ⇒ Check weather articles authorise right issue:- If not, take steps to increase the authorised capital. ⇒ Letter of offer:- Finalize the draft letter of offer for issuing equity shares through right issue. No specific format of Letter of offer is prescribed. However letter of offer shall contain offer price, face value of shares, Mode & terms of payment and right to renounce. ⇒ Board Meeting:- Hold Board Meeting and pass resolution for approval of letter of offer. Notice of BM to be sent atleast 7 days before date of BM. ⇒ Filing of MGT-14 :- File MGT-14 within 30 days from passing board resolution. (This provision is not applicable to private companies). ⇒ Dispatch letter of offer:- Dispatch Letter of Offer through registered post, speed post or electronic mode to all existing shareholders. Letter of Offer to be sent atleast three days prior to opening of issue. Note:- Hand delivery of letter of offer is not permissible. ⇒ Time period of open offer:- Offer to be kept open for minimum 15 days upto 30 days. Provided that in case of a private company, if ninety percent of members have given their consent in writing or in electronic mode, the period lesser than those specified shall apply. ⇒ Deemed refusal:- No Intimation in 30 days would be deemed to be refusal of the offer. ⇒ Another Board Meeting:– Hold another Board Meeting to approve issue of shares to shareholders who have opted for the Right Issue of shares. Notice of BM to be sent atleast 7 days before date of BM. ⇒ Issuance of shares:– Issue shares in accordance with the list of allottees approved in the Board Meeting. ⇒ Filing of PAS- 3:- File PAS-3 within 30 days from date of allotment – return of allotment. ⇒ Issuance of share certificates:- Issue Share Certificate within 2 months from date of allotment
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