Friends,
Does issue of shares by an unlisted public company to an existing shareholder fall under preferential allotment?
Please let me know.
Thanks and regards,
Radhika
prakash
(Company Secretary)
(1352 Points)
Replied 01 May 2014
Radhika,
if allotment is to all existing shareholders it is rights issue, if not to all shareholders it is preferential issue then your company have to comply with section 42 and 62 along with rules prescribed under chapter iii and iv of the companies act, 2013
CAclubindia
