ICDR-Right issue

Sir, if there is reservation for employees to give right issue to them, Is the purpose of right issue is defeated or contrary to law becoz right issue given to only existing shareholder and hereby we are reserving rights for employees and giving share?

The reservation for employees in right issue is optional for company. Company makes reservation for employees when ESOP is given to employees. Hence, the purpose of right issue is not defeated because of reservation to employees.

Answer given by Shubhamm Sir at 10-Nov-2022 04:56 PM