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The notice relating to offer for the right issue shall be dispatched through registered post or speed post or through electronic mode to all the existing shareholders at least before the opening of the issue.
  • a)
    3 days
  • b)
    5 days
  • c)
    7 days
  • d)
    10 days
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
The notice relating to offer for the right issue shall be dispatched t...
Explanation:


  • Notice Dispatch: The notice for the right issue must be dispatched to all existing shareholders before the opening of the issue.

  • Mode of Dispatch: The notice can be sent through registered post, speed post, or electronic mode.

  • Time Frame: The notice should be dispatched at least a few days before the opening of the issue to give shareholders enough time to consider the offer.


Answer:


  • Option A (3 days): This option is not feasible as sending the notice just 3 days before the opening of the issue may not provide enough time for shareholders to make informed decisions.

  • Option B (5 days): This option is also not ideal as it may not give shareholders sufficient time to carefully evaluate the offer.

  • Option C (7 days): This option is the most appropriate as sending the notice at least 7 days before the opening of the issue allows shareholders a reasonable amount of time to review the offer and make decisions.

  • Option D (10 days): While sending the notice 10 days before the opening of the issue would provide shareholders with more time, it may not be necessary and could delay the process unnecessarily.


Therefore, based on the requirement of dispatching the notice before the opening of the issue and providing shareholders with ample time to consider the offer, the correct answer is Option C (7 days).
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