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A urgent query as per new companies act

CA Final 509 views 1 replies

Hello evryone .. Can some on please tell me.. i have four shareholders in a company .. eg. A , B,C & D . where C & D are holding more than 50% stake in the company and they have been allotted shares of the company (MR. C & Mr. D) so the above allotment will be called as Rights Issue or Preferential Rights ..

 

If possible please give the procedure for the allotment of the above shares.

 

Thanks alot in advance 

 

Replies (1)
Hi, such issue is preferential allotment.......however, since the method of rights issue with the right of renunciation is the simplest mode of allotment, it is advisable to use it........


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