Companies (Share Capital and Debentures) Amendment Rules 2021 Notified by MCA
Shivani Jain | Updated: Feb 15, 2021 | Category: News
In exercise of the powers bestowed by section 62 (1) (a), together with the provisions of sub sections (1) and (2) of section 469 of the Companies Act 2013, the Central Government has decided to amend and improvise the provisions of the Companies (Share Capital and Debenture) Rules 2014. The amended regulations will be known as Companies (Share Capital and Debentures) Amendment Rules 2021. Further, the said amended rules will come into force from 01.04.2021
In this blog, we will discuss the concept of section 62 of the Companies Act 2013, together with the amendment made by the government by way of Companies (Share Capital and Debentures) Amendment Rules 2021.
Table of Contents
Concept of Section 62 of the Companies Act 2013
The provisions of section 62 of the Companies Act 2013 deals with the concept of “further issue of capital” and provides Pre-emptive rights to the shareholder of a company. The term pre-emptive rights denotes the privilege to subscribe new shares of the company.
Further, it shall be significant to take into consideration that it is compulsory for all the Public Limited Companies and Private Limited Companies, whether listed or unlisted, to comply with the provisions of section 62 of the Companies Act 2013.
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Key Provision of Companies (Share Capital and Debentures) Amendment Rules 2021
The main amendment bought by way of Companies (Share Capital and Debentures) Amendment Rules 2021 is the insertion of the Rule 12A.
Further, the provisions of the said rule state that the notice period specified under sub clause (i) of clause (a) of sub section (1) of section 62, within which an offer will be made for acceptance must not be less than seven days, starting from the date of the offer.
Conclusion
In a nutshell, by way of this blog, we have covered the latest amendment passed by the Ministry of Corporate Affairs. In case of any other doubt or complexity, reach out to Swarit Advisors, our experts are there to provide you with the best solution and will assist you in obtaining Company Registration in a hassle free manner as well.
Official MCA Notification
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