According to Section 62 of Companies Act 2013 provide that where a public company propose to increase its subscribed capital at any time then search for the share must be referred to the existing share holder of equity share in the proportion to the capital paid up of the share at the date of offer does a companies under legal obligation to first offer the further issue of share to its existing shareholders how have a shareholder have a right to accept or reject a renowned offer in the name of some other person
Conditions: Section 62 lay down the following conditions must be fulfilled conditions
- The offer must be first made to the existing equity share holder of the company in the proportion of their equity share holding
- notice specifying the number of share of a must be given and at least 15 days should be given to accept offer
- if the article of association provide the right to transfer the offer in favour of the nominee must be given
- after the expiry of time is given in a notice on the respect of earlier information from the shareholder that he decline to accept the share the board of director made dispose of such there in such a manner as think most beneficialy to the company
