Question:

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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