Rights issue by pvt. company

Dear all,

We are Pvt. Ltd. co. &  Wholly owned subsidiary of the Jpanaese Listed Company .

We wish to issue Additional Shares to the parent Company , we have sufficient Authorised Capital.

I understand under new companies act even Pvt. Vo. needs to follow the procedure of the Rights issue.

Howver , I could not find the procedure for Rights issue under Companies Act 2013 and its rules .

Can somebody please breif me upon the procedure which we need to follow for rights issue .

Kindly also share sample Resoultion for the rights issue .

Thanks in advance.

Regards,

Gargi

 

 

 

 

Replies (5)

Pl refer Sec.62(1)(a) of Companies Act 2013.

 

Dear Sir,

Thanks a lot for your kind support.

Now I understand that we need to comply with the Offer letter related formalities ,

But do we need to take Extra Ordinary Genral meeting for the same ??

 

Not required under the Act.  Just check your Articles.

 

 

Dear All,

Kindly advise.

Whether the private limited company have to go for private placement or right issue to issue share to existing shareholder( only one shareholder).

 

Gurpreet, if you want to allot shares to existing shareholders only, then you can follow rights issue.

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