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★★★★★
75% · 53/71 Questions
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Start your 14-day free trial to unlock the full solution →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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