Question

Following is true about further issue of share capital:

• A. Rights shares should be issued to existing equity shareholders of the company, as nearly as circumstances admit, in proportion to the paid-up share capital on those shares
• B. Should be issued to employees under a scheme of employees’ stock option, if the company passes ordinary resolution in this behalf
• C. To no other person even if authorized by special resolution of the company
• D. All of the above

Answer 1

Answer: (A)

Rights shares should be issued to existing equity shareholders of the company, as nearly as circumstances admit, in proportion to the paid-up share capital on those shares

Answer 2

The correct answer is option (A):Rights shares should be issued to existing equity shareholders of the company, as nearly as circumstances admit, in proportion to the paid-up share capital on those shares.