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Rights issue sec62

Corporate & Other Laws

Is there anything like... If & only there's authorization in articles about the Issued right share..can have renouncing right to that... Or even didn't mention in articles..,can have renouncing right.. To the issued existing shareholders...?

Divya K

CA Inter

★ 885

21-Apr-22 16:44

175

Answers (4)

Best Answer

No, rights renouncing is the right of the shareholder no such authorization is necessary

mani charan

CA Final

★ 3K+

21-Apr-22 18:56

Section 62(1)(ii) states "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;"

Sudha Reddy

CA Final

★ 20K+

22-Apr-22 09:34

Company can restrict the right to renounce the shares by adding such clause in the Articles. However, if no such stipulation is mentioned in the articles, we deem the right to renunciation exists on such shares.