Dear All,
Can Company issue Preference Shares to its existing Preference Shares Holders under Section 62(1) (a) under Rights Issues of Companies Act, 2013 by issuing letter of offer to the existing prefer share holder through electronic mode and then pass board resolution and issue shares to the existing preference shareholders and utilize money towards allotment of shares, if yes, please let me know detailed procedure and time required to comply.
2) If Preference Shares cannot be issued under Rights issue, so do we need to follow length procedure of Section 55 of Companies Act, 2013 read with Rule 9 of Companies (Share Capital and Debentures) Rules, 2014 for every allotment of Preference Shares, coz in our company we use to do allotment as and wen company required money for project ? Wat will be list of documents if aforesaid section is required to be followed and time limit required for same.
CAclubindia
