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Lab - Rights Issue of Shares

The document outlines the procedure for a rights issue of shares as per Section 62(1) of the Companies Act, 2013, ensuring existing shareholders are offered shares in proportion to their holdings. It details the steps involved, including setting a cutoff date, preparing an offer letter, holding a board meeting, and filing necessary forms with the Registrar. The process culminates in the issuance of share certificates to shareholders within specified timeframes.

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Tanushree Sarkar
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131 views2 pages

Lab - Rights Issue of Shares

The document outlines the procedure for a rights issue of shares as per Section 62(1) of the Companies Act, 2013, ensuring existing shareholders are offered shares in proportion to their holdings. It details the steps involved, including setting a cutoff date, preparing an offer letter, holding a board meeting, and filing necessary forms with the Registrar. The process culminates in the issuance of share certificates to shareholders within specified timeframes.

Uploaded by

Tanushree Sarkar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

RIGHTS ISSUE OF SHARES

• As per Section 62(1) of the Companies act, 2013 if the Company


decides to issue fresh shares, these should be offered to existing
shareholders in proportion to existing persons who are holders of
equity shares.

• The object is, of course, to ensure equitable distribution of Shares and


the proportion of voting rights is not affected by issue of Fresh shares

STEP POCEDURE OF RIGHT ISSUE OF SHAERS

1. Decide the cutoff date.

2. Prepare Draft Offer Letter.

3. Call Meeting of Board of Directors by issuing 7 days notice along


with agenda notes. Hold the board meeting and decide the
Shareholders to whom you will issue shares.

4. Offer letter shall be dispatched through registered post or speed post


or through electronic mode to all the existing shareholders.

5. Offer will be open at least after 3 days of issue of letter of offer.

6. Offer will be open for minimum 15 days or maximum for 30 days.

7. File Form with Registrar: File MGT-14 with Registrar within 30


days of passing of Board Resolution. Attachments: CTC of Board
Resolution for issue of letter of offer.

8. Receive the Money from the Shareholders.

9. Pass Board Resolution for allotment of shares (within 60 days of


receiving of money).

10. File form with ROC: File PAS-3 with Registrar of Company.
ATTACHMENTS: List of Allottees. Board Resolution for allotment of
Shares.

11. Issue Share Certificate: Pass Resolution in the Board meeting


for issue of Share Certificate in Form SH-1. within two months from the
date of allotment.

12. Authorize to two directors and a authorize person to sign


share certificate.

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