Very urgent - right issue by private company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2014 Hi,

Plz guide on Issue of Right Shares to the existing shareholders of private co.

1. Convey a board meeting for approval of Right issue, fix record date, finanlise letter of offer.

2. Dispatch of letter of offer through registered post.

3. convey Board meeting after closure of offer period for Issue & allotment of shares

4. File Form PAS -3 for allotment.

Plz confirm.

Also guide.
a. No need to open separate bank account for accepting share application money
b. PRIVATE COMPANY NEED NOT TO HOLD EGM FOR RIGHT ISSUE.

KINDLY REPLY ASAP.

Thanks & Regards,

CS Adnan Shaikh

CS Adnan Shaikh (Expert)
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04 December 2014 In my opinion the procedure is correct. In addition to this filing of MGT-14 is to be done pursuant to section 179 and 117.

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Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2014 Thanks but plz confirm:

I don't have to do EGM and also need not to open separate bank account.

Regards,

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CS Adnan Shaikh

CS Adnan Shaikh (Expert)
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04 December 2014 No need for EGM and seperate bank account for Rights Issue. Both these will be triggered in case of preferential issue under section 62(1)(c) and 42.