Question:
Following is true about further issue of share capital:
Following is true about further issue of share capital:
Updated On: Aug 4, 2024
- Rights shares should be issued to existing equity shareholders of the company, as nearly as circumstances admit, in proportion to the paid-up share capital on those shares
- Should be issued to employees under a scheme of employees’ stock option, if the company passes ordinary resolution in this behalf
- To no other person even if authorized by special resolution of the company
- All of the above
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The Correct Option is A
Solution and Explanation
The correct answer is option (A):Rights shares should be issued to existing equity shareholders of the company, as nearly as circumstances admit, in proportion to the paid-up share capital on those shares.
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