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Right Issue
As per the provisions of The Companies Act 2013 does the Right issue is mandatory for all companies?
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Quick Summary
No, the rights issue mandatory for all companies.
In a public company, a rights issue is a form of public offering (different from most other types of public offering, where shares are issued to the general public). Sometimes Right issue can give privileges to people like director, employees those are having some ownership in company to buy the issues.
That i understood.
question is thet it every company has to provide right issue when they need money ...can they opt for public issue ie FPO insted of Right issue
question is thet it every company has to provide right issue when they need money ...can they opt for public issue ie FPO insted of Right issue
A private Company cannot opt for public issue therefore it goes for right issue, private placement or other issues as prescribed in Section 62 of the Companies Act, 2013.
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