Rights Issue by Unlisted Company

This query is : Resolved

SREE VIDHYA RAJU (Querist)
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09 June 2009 Can you provide me a checklist of activities that have to be complied for doing a Rights Issue by an Unlisted Company under Section 81 of the Companies Act, 1956

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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09 June 2009 Step 1 : Conduct Board Resolution with the subject rights isse. fix the date of egm, send notices accordingly
Step 2 : Conduct EGM as per notice, inform the necessity of raising additional capital, and pass 81(1A) resolution
Step 3 : File Form 23
Step 4 : Fix date of subscription opening and closing date in the board meeting
Step 5 : intimate the shareholders
Step 6 : Receive application money
Step 7 : Conduct board meeting and allot shares
Step 8 : Pay stamp duty on the same
Step 9 : File Form 2 with Roc
Step 10 :Send share certificates to the shareholders.
Step 11 : Update the shareholders registers.

Ankur Garg

Ankur Garg (Expert)
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10 June 2009 Hi Vidhya,

Slightly disagree with the answer above.

For right issue there is no need to call EGM and obtain Shareholders' approval because you are not making any preferential issur u/s 81(1A).

Right issue is govern by Section-81(1) and in that allotment is made to the existing shareholders for which simple BM would be required.

After allotment in BM file form-2 with ROC within 30 days of allotment in BM.

Regards

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