Pre-emptive rights ensure existing shareholders are offered new shares proportionately; renunciation, ESOP and special-resolution exceptions apply. Shares proposed in an increase of subscribed capital must be offered to existing equity shareholders proportionately by notice specifying number of shares and a limited acceptance period; the offer may include a right to renounce in favour of another person, and unaccepted shares may be disposed of after the notice period in a manner not disadvantageous to shareholders and the company. Offers must be despatched by registered or speed post or electronic mode. Exceptions include issuance under employee stock option schemes by special resolution and issuance to others by special resolution with valuation, and conversion of debentures or loans into shares subject to specified conditions and governmental conversion powers with Tribunal appeal.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Pre-emptive rights ensure existing shareholders are offered new shares proportionately; renunciation, ESOP and special-resolution exceptions apply.
Shares proposed in an increase of subscribed capital must be offered to existing equity shareholders proportionately by notice specifying number of shares and a limited acceptance period; the offer may include a right to renounce in favour of another person, and unaccepted shares may be disposed of after the notice period in a manner not disadvantageous to shareholders and the company. Offers must be despatched by registered or speed post or electronic mode. Exceptions include issuance under employee stock option schemes by special resolution and issuance to others by special resolution with valuation, and conversion of debentures or loans into shares subject to specified conditions and governmental conversion powers with Tribunal appeal.
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