- Duties of Secretary Regarding the Right Share: The duty of the secretary regarding the Right share is divided into two parts:
A. Offer Made to the Existing Share Holders:
1. First of all the secretary has to decide about legality of arrangement of Right share within specified time limit.
2. The resolution for this must be passed in the meeting of the Board of Directors.
3. The shareholders have to be given a due notice regarding the application to be made for the Right share and payment required money to be made and minimum 15 days should be given.
4. The date of closing the list of members and the list of transfer of share must be decided, so that number of members entitled for getting Right share can be decided.
B. Offer Made to General Public: If those Right shares are not taken by members or they have not applied for those shares they are distributed or offered to the general public for subscription by issuing prospectus. All the formalities for this are very similar to the procedure for the issue of shares. Formalities done like calling for a meeting, to pass a resolution, to send letter of allotment, to send share certificate, to note down in the list of members, to prepare share allotment register etc need to be done.