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Right Issue

PKM Calicut (4 Points)

29 March 2020

As per the provisions of The Companies Act 2013 does the Right issue is mandatory for all companies?

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4 Replies

Spurto Consultancy Services (Consultant) (1891 Points)
Replied 29 March 2020

No, the rights issue mandatory for all companies.

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Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (5893 Points)
Replied 29 March 2020

In a public company, a rights issue is a form of public offering (different from most other types of public offering, where shares are issued to the general public). Sometimes Right issue can give privileges to people like director, employees those are having some ownership in company to buy the issues.

PKM Calicut (4 Points)
Replied 29 March 2020

That i understood.
question is thet it every company has to provide right issue when they need money ...can they opt for public issue ie FPO insted of Right issue

Anjali lakra (473 Points)
Replied 02 April 2020

A private Company cannot opt for public issue therefore it goes for right issue, private placement or other issues as prescribed in Section 62 of the Companies Act, 2013.

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