Rights Issue
pooja (student) (46 Points)
13 June 2019
Can a rights issue offer period be extended by passing BR?
Jatin Bajaj
(CS)
(2930 Points)
Replied 14 June 2019
As per the provisions of Section 62 of the Companies Act 2013, right issue of shares means the shares in which the shares are issued to the existing shareholders on pro rata basis on the basis of the proportion of the existing shares held by them.
Right issue of shares can be governed by sending the draft letter of offer to the existing shareholders atleast 3 days before the date of opening of issue. Provided in case of private Company draft offer of letter can be made shorter than 3 days if 90 percent of the shareholder has consented in writing and has agreed on sending the draft letter in shorter span of time.
The offer letter shall remain valid minimum for a period of 15 days and maximum for the period of 30 days.
pooja
(student)
(46 Points)
Replied 14 June 2019
User01
(Still studying )
(2 Points)
Replied 15 June 2019
CS M Pota
(Company Secreatary)
(3186 Points)
Replied 15 June 2019
Yes, if first offer period is of 15 days the Board may extend the last date for receipt of the application form by such period as it may deem fit or to close the offer earlier upon receipt of full subscripttion but the the offer shall not be opend for exceeding a maximum period of thirty days from the date of opening of this offer.
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