Question
When a company needs additional capital and keeps the
voting rights of shareholders proportionally balanced, the company_______?Solution
Section 62. Further issue of share capital- (1) Where at any time, a company having a share capital proposes to increase its subscribed capital by the issue of further shares, such shares shall be offered— (a) to persons who, at the date of the offer, are holders of equity shares of the company in proportion, as nearly as circumstances admit, to the paid-up share capital on those shares by sending a letter of offer
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