Director of private limited decided to issue right share to existing shareholder.
Director conducted board meeting and finalize all term and condition regarding right issue and den send the offer letter to all the existing shareholder.
later on after receiving the application and amount of right issue, director decide to withdraw right issue.
1. Can director of company withdraw right issue at the time of receipt of application and amount against right shares?
2. Can a minority shareholders carry any rights regarding withdrawal of right issue?
Companies Act, 2013 (mca.gov.in)
The companies act doesnt mention anything. But you can return the application money back and withdraw rights. The dispute issue lies with the bond shareholders agreed upon. If it explicitly states that rights can be withdrawn, it can be.
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