Right Issue by a Pvt Ltd Co.

This query is : Resolved

Nidhi Gupta (Querist)
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11 December 2008 A private limited co. wants to issue shares to its existing share holders on right basis. It has no power in the articles. What should be the procedure for issue of shares on right basis in a pvt ltd co.? Please rply

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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11 December 2008 A private Company cannot make public issue. So whenever it will raise its sharecapital that will be right issue.

CS Vivek Hegde

CS Vivek Hegde (Expert)
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11 December 2008 Nidhi

If articles does not provide for the it does not mean that the Board has no power, Table A of the Act will apply.

Again there is no question of Private or Public the provisions are same.

rgs

Vivek

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