Checklist for Rights Issue of Shares with time frame pursuant to Section 62 of Companies Act, 2013

S.NO.	PARTICULARS	MAX. TIME	TARGET TIME
1	Notice of Board Meeting at least 7 days before the meeting specifying the time for which the offer shall be remained open (minimum 15 days and maximum 30 days). The notice to include the right to renounce shares in favour of some other person.	1 day	1 day
2	Hold the Board meeting and pass the resolution for approval of draft letter of offer including the right of renunciation in the letter	7 days	1 day^
3	Dispatch Letter of offer through registered post or speed post or through electronic mode to all the existing shareholders. – As per Section 62(2) Letter of Offer must be sent at least 3 day before the opening of issue The notice can be sent even lesser than three days before the issue opens, if 90% of the members agree in writing (consent can be even by electronic mode).	4 days	2 days
4	The offer shall remain open for subscription for minimum 15 days and maximum 30 days. If 90% of the members agree in writing (consent can given by electronic mode) then the offer can be kept open for lesser than 15 days.	15 days	2 days
5	Receive acceptance/ renunciations/rejection of rights from members to whom the offer has been sent & also from persons in whose favour right renounced.	2 days	2 days
6	Receive Application Money In Right Issue application of money through CASH is Allowed	1 day	1 day
7	Issue Notice of 2nd Board Meeting at least 7 days before the date of Board Meeting	1 day	1 day
8	Hold Board Meeting and represent the list of Allottees and Pass the Board Resolution for Allotment of Shares	7 days	1 day^
9	File PAS-3 within 30days from the date of Allotment. Attachment :        CTC of Board Resolution for Allotment of Shares       List of Allottee	30 days	1 day
10	Issue Share Certificates in SH-1 within 2 Months from date of allotment	60days	5 days
	TOTAL DAYS REQUIRED	127 days	17  days

^Board Meeting can be held at shorter notice with presence of at least 1 independent director

Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided. I assume no responsibility for the consequences of use of such information. In no event I shall be liable for any direct, indirect, special or incidental damage resulting from, arising out of or in connection with the use of the information.  

References:

Companies Act 2013

Contact:

CS Divyanshu Bansal

Email ID: divyanshubansal401@gmail.com

Ph: 9958381905