Share Capital and Types of Shares — SPCC STD 11 Commerce — Question

Duties of Secretary Regarding the Right Share : The duty of the secretary regarding the Right share is divided into two parts: (i) Duties towards existing shareholder (ii) Duties towards general public.
(1) Duties towards Existing Shareholders: Existing shareholders have first right to purchase the issued share of the company, when the company issue new shares out of its authorised share capital, its a right of existing shareholders to purchase it. Following are the duties of company secretary towards existing shareholder.
(1) First of all the secretary has to decide about legality of arrangement of right share within specified time limit.
(ii) The resolution for this must be passed in the meeting of the Board of Directors.
(iii) The shareholders have to be given a due notice regarding the application to be made for the Right share and the payment of required amount should be given within 15 days.
(iv) The date of closing the list of members and the list of transfer of share must be decided. So the number of members entitled for getting Right shares can be decided.