Clarification On Dispatch Of Notice Under Section 62(2) By Listed Company For Right Issue Opening Upto 31st July. 2020.
Pursuant to Section 62(2) of Companies Act, 2013 whenever Company increases its subscribed capital by issue of further shares to persons who at the date of the offer, equity holders of the company in proportion, as nearly as circumstances admit, to the paid-up share capital on those shares by sending a Notice. Such notice shall be dispatched through registered post or speed post or through electronic mode or courier or any other mode having proof of delivery to all the existing shareholders at least three days before the opening of the issue.
Companies are facing difficulties in sending notices through postal or courier services due to coronavirus pandemic. Therefore, Ministry of Corporate affairs vide its circular No. 21/2020 dated 11th May, 2020 granted relaxation incase of inability of dispatch of notice by listed Company under Section 62(2) of Companies Act, 2013 for Right issue opening upto 31st July, 2020.
In other words, if such companies are not dispatching notice to the shareholders 2013 for Right issue opening upto 31st July, 2020 through registered post or speed post or courier then it would not be considered as the violation of Section 62(2) of Companies Act, 2013.
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