Section 62 of Companies Act 2013 | Rights Issue Guide

In this comprehensive video, we dive deep into Section 62 of the Companies Act, 2013, a crucial provision that deals with the issue of shares and the rights of existing shareholders. Section 62 governs how a company can offer additional shares to its shareholders before offering them to the general public. This is popularly known as a "rights issue." We break down the section into its core components and explain how companies must follow the rules outlined under this section to ensure legal compliance when raising additional capital

The video highlights the three key parts of Section 62:

1. Rights Issue: The company must offer new shares to existing shareholders in proportion to their current shareholding.

2. Employees Stock Option Scheme (ESOS): The company can also issue shares to employees under a recognized ESOS, providing incentives and motivation for employees.

3. Private Placement: If shares are not subscribed by existing shareholders, they can be offered to third parties, subject to approval in a special resolution.

We also explore the importance of adhering to the time frames, pricing, and procedural requirements under Section 62, and how non-compliance can lead to significant legal and financial ramifications. This video is designed to help company directors, legal professionals, business students, and investors understand the nuances of capital raising while maintaining the rights of shareholders intact.

Don't miss this insightful explanation of Section 62 and how it empowers companies to expand their capital base while ensuring transparency and fairness to all stakeholders. Subscribe for more updates on company law, business regulations, and legal compliance.

Section 62 Companies Act 2013, Rights Issue explained, capital raising under Companies Act, Rights Issue procedure India, Companies Act share issuance, ESOS in Companies Act 2013, Private Placement Companies Act, Rights Issue in India, Companies Act 2013 detailed explanation, Shareholders rights, Section 62 compliance, Legal framework for share issuance, Company law capital raising, Business law Section 62, Section 62 step-by-step guide, Companies Act shareholders protection.

#CompaniesAct2013 #Section62 #RightsIssue #CorporateLaw #BusinessLaw #ShareholdersRights #CompanyLaw #LegalCompliance #CapitalRaising #PrivatePlacement #ESOS #LegalFramework #BusinessRegulations #CompanyDirectors #CorporateCompliance

Company Act 2013 Section 62, adhik swamitva ka adhikar Company Act, rights issue Section 62, adhikaar mudran dhara 62, naye shares issue karna Section 62, section 62 ke tahat adhikar mudran, companies act mein rights issue, company law mein naye shares, section 62 ka mahatva, adhikar mudran ke niyam, section 62 ke provisions, shareholders ke adhikar Company Act, dhara 62 ka labh, company ka capital badhana section 62, shares ka issue kaise hota hai