section offer issue shares applicable rights record 621a under letter
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Section 42 of the Companies Act, 2013 deals with the private placement of securities by a company. Private placement is the issuance of securities to a select group of persons and is different from a rights issue of shares.
A rights issue of shares is governed by Section 62(1)(a) of the Companies Act, 2013, which provides for the issuance of shares to existing shareholders of the company in proportion to their existing shareholding. Section 42 is not applicable to a rights issue of shares as it is a different mode of issuance.
Similarly, PAS-4 (Letter of Offer) and PAS-5 (Record of Private Placement Offer) are not applicable for a rights issue of shares. Instead, the company needs to issue a letter of offer to the existing shareholders informing them about the rights issue and the terms and conditions of the issue. The letter of offer needs to be filed with the Registrar of Companies within 30 days of the offer.
The company also needs to maintain a record of shareholders who have been offered the rights issue, the number of shares offered to each shareholder, and the number of shares subscribed to by each shareholder. This record needs to be maintained in accordance with the provisions of the Companies Act, 2013 and the applicable rules.
The current shareholders must be informed of the rights issue and the terms and circumstances of the issuance through a letter of offer issued by the firm. The offer letter has 30 days from the date of the offer to be submitted to the Registrar of Companies. backrooms
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Hello Everyone
If the company was incorporated in March 2023 in Canada by an Individual resident of India, due to non-approval of ODI, no remittance is yet made.
Please advise whether that resident individual needs to file his FLA due in July.
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notarized apostilled incorporation company required documents overseas subscriber director case
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Hi Mahima
As per section 23 of the Companies Act, 2013, a public company can issue
securities:-
— To public through prospectus;
— Through private placement by complying with the provisions of part II of
chapter III; or
— Through a rights issue or bonus issue. In case of a private company it can issue securities by any method as mentioned above other than to public through prospectus. Section 42 relates to private placement only and there is no need to comply with the provisions of section 42 in case of rights issue and accordingly PAS-4 and PAS-5 shall not be applicable in case of rights issue.
Hope this helps you.