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Letter of Offer for Right Issue

Letter of Offer required to be issued in case of allotment of Equity Shares to be made to the existing Equity Shareholders of the Company on Rights Basis This specify the terms and conditions including the total number of Equity Shares to be offered, Price at which the Shares to be offered, time period, ratio at which to be offered etc, on which the proposed allotment to be made to the Existing Equity Shareholders.

Chapter: Chapter - IV

Section: Section 62

Approximate Time Saving: 1 day

Product Information

This document consist of Word format of 'LETTER OF OFFER' to be sent to the existing Equity Shareholders in case of allotment of Equity Shares on Rights Basis.

This document is drafted keeping in mind all the relevant provisions of Companies Act, 2013 and to save your precious time and effort. 

Additional Information

Section 62(1) Where at any time, a company having a share capital proposes to increase its subscribed Capital by the issue of further shares, such shares shall be offered—


(a) to persons who, at the date of the offer, are holders of equity shares of the company in proportion, as nearly as circumstances admit, to the paid-up share capital on those shares by sending a letter of offer subject to the following conditions, namely:—

(i) the offer shall be made by notice specifying the number of shares offered and limiting a time not being less than fifteen days and not exceeding thirty days from the date of the offer within which the offer, if not accepted, shall be deemed to have been declined; 

(ii) unless the articles of the company otherwise provide, the offer aforesaid shall be deemed to include a right exercisable by the person concerned to renounce the shares offered to him or any of them in favour of any other person; and the notice referred to in clause (i) shall contain a statement of this right;

(iii) after the expiry of the time specified in the notice aforesaid, or on receipt of earlier intimation from the person to whom such notice is given that he declines to accept the shares offered, the Board of Directors may dispose of them in such manner which is not dis-advantageous to the shareholders and the company;



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Letter of offer