what rights issue do the shareholders of a company

Question

Under Companies Act, 1956 what ‘rights issue’ do the shareholders of a company have?

Answer 1

The rights and duties of shareholders are stated from time-to-time of issue of shares. The rights of shareholders are fixed that cannot be changed unless the Companies Act gets tailored.
Right issue that shareholders grasp of a company under Companies Act, 1956 are illustrated below:-

i) Rights appended to shares of any class can be varied by the consent of shareholders holding not less than seventy% of issued shares.

ii) Rights of Dissenting Shareholders: Protection by Companies Act is prearranged to the shareholders who does not consent to or vote for disparity of their rights. If there is any discrepancy in any rights of any class of shareholders then holders of not less than ten percent of shares of that class can apply to the court to have the disparity cancelled. It won't have any influence until it is been permitted by the court.

iii) Voting rights of the members: - Every member of public company that has the shares holding equity has votes in percentages to his share in paid up equity capital.

iv) Preference shareholders do not have any voting rights. They can vote only on subjects that are directly related to the rights appended to preference share capital.