Overview - Rights Issue of Shares by Private Company
Find Rights Issue of Shares by Private Company Goverment Fee
Rights Issue of Shares by Private Company goverment fee computation tool. Fill below details and submit
Company propose to raise capital by issue of shares shall offering shares to existing members in proportion to their existing share holding. The object is to ensure equitable distribution of Shares and the proportion of voting rights is not affected by issue of Fresh shares.
The existing shareholder getting right can have the option to assign such right to other person or can waived or modified the right. Once he/she exercise right, he/she can't modify the right and board of director decide how to proceed.
Company by passing a special resolution in General Meeting can alter this right and can offer share to anyone including existing shareholders.
Who need this service?
Any company planning to issue shares to existing shareholders at premium can opt this service. The service have two part;
a. Offer of shares to existing shareholders
b. Issue of shares
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Rights Issue of Shares by Private Company - Requirements
Offer for issue of shares
Filing with Registrar
Issue of share certificate
Process for Rights Issue of Shares
Call Board Meeting for Offer of shares.
The first step for issue of share at premium is call board meeting for issue of shares. At the meeting fix price and number of shares to be issued, offer date, closing date etc.
Sent Offer letter to shareholders and collect Application
After the Board meeting dispatch offer letter with application to existing shareholders. Collect all application within the offer period and make a list of proposed allottees.
Issue of Shares
Call board meeting for issue of shares and at the meeting pass resolution for issue of shares to eligible applicants.
File Return of Allotment with MCA
After board meeting file return of allotment in PAS-3 with respective registrar of companies.
Issue of share certificate
After allotment issue share certificate to existing allottees and make necessary entries in members register.
Filled application signed by shareholders/renouncee with renunciation letter if application. Also collect PAN and other information for making entries in the members register
List of Documents
- Application for Issue of shares
- PAN Card Copy
Rights Issue of Shares
Application to Subscribe right shares
Existing shareholders and renouncee can apply for shares after fulfilling terms and conditions of the offer letter.
Board meeting - Issue of Right shares
Company shall call a board meeting for approval of right issue of shares. In the board meeting necessary resolution shall be passed
Filing of return of allotement
After share are issued, company must file return of allotment in PAS-3 within 30 days from the date of issue of shares.