Corporate and Other LawsMCQQuestion 12531 of 300
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Under Section 62(1)(a) of the Companies Act, 2013, the offer of rights shares to existing equity shareholders shall be open for a period of:

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — Not less than 15 days (or lesser days if 90% members agree) and not exceeding 30 days

All Options:

  • ANot less than 15 days (or lesser days if 90% members agree) and not exceeding 30 days ✓
  • BNot less than 30 days and not exceeding 60 days
  • CNot less than 7 days and not exceeding 14 days
  • DNot less than 21 days and not exceeding 45 days

Detailed Solution & Explanation

Correct Answer: Option **A** (Not less than 15 days (or lesser days if 90% members agree) and not exceeding 30 days) **Statutory Provision (Section 62 - Further Issue of Share Capital (Rights Issue)):** Section 62(1)(a)(i) provides that the offer shall be made by notice specifying the number of shares offered and limiting a time not being less than fifteen days (or such lesser number of days as may be prescribed) and not exceeding thirty days from the date of the offer within which the offer, if not accepted, shall be deemed to have been declined. Therefore, Option A is the correct legal position under the ICAI curriculum.

More Questions from Corporate and Other Laws

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Under Rule 3(3) of the Companies (Acceptance of Deposits) Rules, 2014, what is the maximum aggregate limit of deposits that an eligible public company can accept from its members and the public?

Which of the following is a requirement for a company to buy back its securities under the Companies Act, 2013?

What is the tax treatment of buyback of shares by an unlisted company?

Explain the concept of differential rights and its significance in the context of buyback of securities.

What are the legal provisions governing the buyback of securities by a company in India?

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