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Right isuue and preferential allotment

Corporate & Other Laws

Can anyone plz clerly explain difference between right issue and preferential allotment


Gauri Shete

Gauri Shete

CA Final

5K+

11-Mar-23 10:40

487

Answers (1)

In case of rights issue all shareholders get a right to subscribe. Non share holders cannot subscribe unless they purchase entitlement from existing shareholders. In case of preferential allotment only some get right to subscribe. Also here non-shareholders can subscribe.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

11-Mar-23 10:41

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