I have a query regarding right issue:- In a Pvt Company shares are allotted to a director,who is not holding shares in the Company.As per Sec. 62(1)(a) (ii) , shareholder to whom right is given has power to renounce the right in favour of any other person.Can i choose the provisions of right issue for this?
2 Replies
Anusha
(Practicing Company Secretary)
(116 Points)
Replied 08 August 2014
Dear Raghi,
Section 62(1)(11) deals with further issue of shares.In your case the Director is not an existing share holder and allotment to him wont come under the provisions of rights issue.Now coming to the second part a member can renounce the shares in favour of some one else,,if your share holders are pre arranged in favour of the said director then i think you can choose that option.
Other views and suggestions are invited
Vandana J Doshi
(Practising Company Secretary)
(12562 Points)
Replied 11 August 2014
Yes Raghi, you can use the right to renunciation of the shareholders for the issue......
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