Right share are those share which are issued after the original issue of share, but have an inherent right of the existing share holders to subscribe this share in proportion in their share holdings. These share can, however, be issued to the nonmembers when the existing share holders do not accept the offer within a prescribe time limit. The issue of right share must be within the limit of authorized capital of the company.
Generally right share are issue to the existing share holders at concessive rate, when market value of share is over than the normal per value of share.