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Right shares can be offered by the companies to persons other than existing shareholders or employees by passing a:
  • a)
    Special Resolution
  • b)
    Extra-ordinary Resolution
  • c)
    Ordinary Resolution
  • d)
    Board Resolution
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Right shares can be offered by the companies to persons other than exi...
Special Resolution:


  • The right shares can be offered to persons other than existing shareholders or employees by passing a Special Resolution.

  • A Special Resolution requires the approval of at least 75% of the shareholders present and voting at a general meeting.

  • This resolution is needed to authorize the issuance of new shares to individuals who are not currently shareholders or employees of the company.

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Right shares can be offered by the companies to persons other than existing shareholders or employees by passing a:a)Special Resolutionb)Extra-ordinary Resolutionc)Ordinary Resolutiond)Board ResolutionCorrect answer is option 'A'. Can you explain this answer?
Question Description
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