Institute of Chartered Accountants of India

Announcement 

MCA has issued Clarification on dispatch of notice by Listed entities for rights issue opening under section 62(2) of Companies Act, 2013 up to 31st July, 2020 

Section 62 of the Companies Act, 2013 (the Act) prescribes law for ‘Further Issue of Share Capital’. Sub-section (2) of the said section provides that the notice referred to in Section 62(1)(a)(i) shall be despatched through registered post or speed post or through electronic mode to all the existing shareholders at least three days before the opening of the issue.

However, the Ministry of Corporate Affairs has clarified that inability of any Listed Company to dispatch the notice referred in section 62 of the Act to shareholders through registered post or speed post or courier for the rights issue opening upto 31st July, 2020, would not be viewed as violation of section 62(2) of the Act if the SEBI Circular No SEBI/ HO/CFD/DIL2/ CIR/P/2020/78  dated 6th    May,   2020   is   complied   with  ( https://www.sebi.gov.in/legal/circulars/may-2020/relaxations-relating-to-procedural-matters-issues-and-listing_46652.html ).

[Refer MCA  General Circular No. 21 dated  13th  May, 2020  available   at  http://www.mca.gov.in/Ministry/pdf/Circular21_11052020.pdf ]

With Kind Regards,

Chairman / Vice- Chairman

Corporate Laws & Corporate Governance Committe

Source- ICAI

More Under Company Law

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

October 2020
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031