Right issue of share

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Querist : Anonymous

Querist : Anonymous (Querist)

21 April 2012 Hi,

Please tell me whether a private company can issue Right share if not mention in AOA?

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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21 April 2012 No.

If a private company opts for Right Issue, AOA of the company must specifically provide for it. If the articles are silent, the shareholders have no pre-emption rights and the directors have the right to offer new shares to any person/s in any number.

CA Prashant Gupta

CA Prashant Gupta (Expert)
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21 April 2012 AOA must specifically allow the issue of right shares or it must contain the clause the Table A will refer in case of no provision in AOA.

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