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Question 53 of 71

Q.Letter of renunciation is related to _____.

(a) (A) Share forfeiture
(b) (B) Resignation of promoters
(c) (C) Right share
(d) (D) Refund of share application money
Gujarat GsebGujarat Board (GSEB) HSC Commerce Board 2026MCQ· 1mImportance★★★★★
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A letter of renunciation is connected with right shares — the correct option is (C).

When a company makes a rights issue, existing shareholders get the first right to buy the new shares in proportion to their holding. If a shareholder does not wish to take up these right shares himself, he can transfer (renounce) his entitlement in favour of another person by signing a letter of renunciation attached to the rights offer.

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