Law stated in this book is updated till 20th December, 2025
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8
DEMOCRACY OF
PROCEDURE OF GENERAL MEETING
RESTRICTIONS ON POWERS
MANAGERIAL PERSONNEL
DIVIDEND
PROCEDURAL COMPLIANCES BY A COMPANY
FURTHER ISSUE OF SECURITIES SAMPLE CHAPTER
7
7.1 RIGHTS ISSUE
Only one pre-emptive right is to be given
Sangramsinh P Gaekwad Shantadevi P Gaekwad
Employees Stock option
Exercise of option attached to debenture or loan
Special resolution by members not to make rights issuesubject to the compliance with the applicable provisions of Chapter III and any other
conditions as may be prescribed
Westfort Hi-Tech Hospitals V S Krishnan V S Krishnan
Westfort Hi-Tech Hospital Ltd.
If member does not accept rights offer
Compulsory conversion of loan or debentures by Government
Nidhi companies need not make rights issue
7.1-2 Issue of shares by private company
7.1-3 Letter of Offer in case of rights issue or courier or any other mode having proof of delivery
Para 7.1
Reduction in time line for rights issue to even less than 15 days -now 7 days
Letter of Offer by listed company
7.1-5 Meaning of ‘renunciation of rights Offer’
Vikram Singh Oberoi ROC
Para 7.1
Resolution can specify that renunciation can be only in favour of existing member V
O John Catholic Syrian Bank Ltd ` ` as nearly as circumstances admit
Coupons for fractional rights
Para 7.1
Para 7.2
and
7.1-9 Issue of Rights Shares under FEMA
7.2 ‘PREFERENTIAL ALLOTMENT’ IN CASE OF FRESH ISSUE OF SECURITIES
Explanationpro rata subject to the compliance with the applicable provisions of Chapter III and any other conditions as may be prescribed c
Para 7.3
Preferential allotment in case of listed companyproviso -
Validity period of special resolution
Certificate from auditor/PCS
7.3 BONUS SHARES
Bonus shares out of securities premium account
Bonus shares out of capital redemption reserve account
No bonus out of revaluation of reservesproviso
SEBI guidelines for listed companies
7.3-5 Effect of issue of bonus shares
Gopal Paper Mills CIT
Hunsur Plywood Works CIT Khoday Distilleries Ltd. CIT
7.3-7 Expenses in issue of bonus shares are revenue expenses CIT General Insurance Corporation
Bombay Burmah Trading CIT
Gujarat Steel Tubes CITCIT Bharat Vijay Mills
Shri
Para 7.3
7.3-8 Proviso
Standard Chartered Bank Custodian
Para 7.4
and
7.3-12 Income Tax Aspects of bonus shares
Explanation
7.3-13 Bonus debenture Astra Zeneca Pharma India Ltd., In re
7.3-14 Bonus shares under FEMA
7.4 SWEAT EQUITY SHARES oror
Statutory provisions for sweat equity
Provisions in listed of listed companies
Provisions in case of unlisted company
or pari passu
Special provisions in case of startup company proviso
COMPANY LAW READY RECKONER
AUTHOR : Taxmann's Editorial Board
PUBLISHER : Taxmann
DATE OF PUBLICATION : January 2026
EDITION : 18th Edition | 2026
ISBN NO : 9789371262194
PAGE NO : 836
BINDING TYPE : Paperback
Rs. 2,395
DESCRIPTION
Company Law Ready Reckoner is a practice-oriented reference work designed as a single-volume operational manual on Indian company law under the Companies Act 2013. Conceived as a true ready reckoner, the book is meant for frequent consultation in day-to-day professional work rather than as a purely academic text. Its editorial approach is grounded in practical application, focusing on routine, recurring, and compliance-critical issues encountered in corporate functioning. Matters not typically faced daily—such as detailed NCLT litigation or public issues of securities (primarily regulated by SEBI)—are covered at a foundational level to maintain clarity, usability, and speed of reference. This Edition reflects the enforcement-oriented phase of Indian corporate regulation, marked by enhanced governance standards, managerial accountability, procedural discipline, and electronic compliance systems.
This publication is intended for readers who apply company law in practice, including:
• Practising Company Secretaries, Chartered Accountants, Cost Accountants, Advocates
• In-House Legal, Secretarial, Compliance, & Governance Teams
The Present Publication is the 18th Edition | 2026, and is updated till 20th December 2025. This book is authored by Taxmann's Editorial Board with the following noteworthy features:
• [Ready-reckoner Design] Focus on routine and practical company law issues encountered in everyday corporate operations
• [Integrated Treatment of Law and Procedure] Combines statutory provisions with approval routes, compliance steps, and filing realities
• [Governance-centric Coverage] Emphasis on shareholder democracy, board functioning, directors' duties, and managerial accountability
• [Procedural & E-Governance Alignment] Detailed coverage of MCA-21, electronic filings, statutory registers, records, and returns
• [Compliance-at-a-Glance Tools] Structured summaries and tabular presentations for quick decision-making
• [Drafting and Practical Guidance] Drafting-oriented discussion where customisation is commonly required (e.g., Articles of Association)
• [Clear Scope Delimitation] Basic treatment of NCLT matters and public issue mechanisms to retain focus on day-to-day compliance
• [Comprehensive Indexing] Section-wise and subject indexing for fast and precise navigation
