Right Issue

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2011 Can anyone provide me complete procedures of right issue of a private company including the specimen of resolutions.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 July 2011 Rights Issue (RI) is when a listed company which proposes to issue fresh securities to its existing shareholders as on a record date. The rights are normally offered in a particular ratio to the number of securities held prior to the issue. This route is best suited for companies who would like to raise capital without diluting stake of its existing shareholders unless they do not intend to subscribe to their entitlements.

But in case of Pvt Ltd Company...

A private Company cannot issue shares to outsiders so invariably the shares are allotted to existing shareholders. So a pvt company can issue shares to existing shareholders by passing a resolution in Board Meeting and filing form 2 within 30 days.

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2011 Thank you

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