X Ltd. issued a notice on 1st Feb 2018 to its existing shares holders offering to purchase one extra share for every five shares held by them.
The last date to accept the offer was 15th Feb 2018 only. Mr. Kavi has given an application to renounce the shares offered to him in favor of Mr. Ravi, who is not a shareholder of the company. Examine the validity of the application of Mr. Kavi under the provisions of the Companies Act, 2013. Would your answer differ if Mr. Kavi is a shareholder of X Ltd.?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below According to section 62 of the Companies Act 2013 where at any time a company having a sh... View the full answer