Sec.194 of companies act 2013

Dear Vinay,

Section 194 talks about a right to call…that means a call option and right to make delivery..that means make delivery to someone i.e. put option.

Now the only difference between sub clause a & b is “as he may elect”…

Now you can remind yourself of call options – American and European call options.

A European call option allows the holder to exercise the option (i.e., to buy) only on the option expiration date. Though he holds the right but not the discretion on when to make such call i.e. on the expiration date he is allowed to (no other option before the expiration date) – This would be 194(1)(a). Therefore in the sub clause (a) it has been mentioned simply “a right to call for delivery”

Whereas

An American call option allows exercise at any time during the life of the option. It is at the discretion of the holder when to make a call (as he holds the right and can be exercised during the life of the option). Therefore in the sub clause (b) it has been mentioned “a right, as he may elect, to call for delivery,”

“As he may elect” means it is at discretion to exercise the call, which is only available at American call option.

Do refer your MAFA/SFM notes.

Why here '' NUMBER  of specified SHARES'' and ''AMOUNT of specified DENENTURES ''