Right issue

1.  Decide issue size & price per share

2. Increase authorised share capital (if necessary)

3. Pass Board resolution for the issue and approval of letter of offer

4. File MGT.14

5. Send offer letter & application form to all shareholders

6. Get subscripttion amount and make final list of valid applicants

7. Pass Board resolution for allotment & issue of share certificates

8. File PAS-3

9. Issue share certificates

10. Make entry in register of members

 

Thanks for the reply. Can you explain why Form MGT-14 is required to be filed when we are filing the board resolution in Form PAS-3 itself. Is Shareholders meeting also required to be conducted for right issue.

One of our Private Company wants to issue shares only to one shareholder out of four shareholders, for that purpose can company issue shares on right basis by taking NOC/renunciation letter from existing shareholders.

Hi Juhi, MGT 14 is to be filed as the same is required pursuant to sec 117 read with sec 179 (3)..... No, rights issue does not require shareholders meeting..... ANd for your last question, rights issue with renunciation rights is acceptable....in fact it is the only method requiring less compliances.... Regards

Thanks for the reply

URGENT.

Can anyone please share draft Board resolution for allotment of shares to non existing equity shareholders when existing shareholder decline the offer of the company under right issue of the shares?

can pvt company allot shares on right issue basis to the directors/shareholders of the company, after taking renunciation letter from other shareholders. and is it required to file the letter of offer with roc . please provide the draft letter of offer and renunciation letter if possible.

 

Hi can anybody can provide letter of offer format for right issue