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
