Right Issue
This query is : Resolved
shashidhar
(Querist)
18 September 2017
any Pvt company can issue right shares. Any condition s applicable
CS Mitesh Mehta
(Expert)
19 September 2017
Yes.
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
CS Mitesh Mehta
(Expert)
19 September 2017
Yes.
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
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- EPF ECR NEW RULES Sep 17th 2026
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
