conversion of preference shares into equity shares

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2010 X LTD. HAS ISSUED 14757 PREFERENCE SHARES ON 30.03.2010. NOW THE COMPANY WANT TO CONVERT THOSE SHARES INTO EQUITY SHARES.

SO PLEASE TELL ME ABOUT THE PROCEDURE TO BE FOLLOWED FOR THIS PURPOSE.WHICH SECTIONS OF COMPANIES ACT WILL APPLY AND WHAT ARE THE OTHER APPLICABLE RULES AND REGULATIONS.

IS THERE ANY TIME LIMIT FOR CONVERSION OF PREFERNCE SHARES.

PLS ALSO PROVIDE A CHECKLIST IF YOU HAVE ASAP .YOU CAN ALSO MAIL AT amazanagrogroup@gmail.com

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2010 pls reply as i need the information urgently

Querist : Anonymous

Querist : Anonymous (Querist)

17 July 2010 pls reply

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CA Sanat Pyne

CA Sanat Pyne (Expert)
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06 August 2010 Conversion of equity share capital into preference share capital and vice versa
The share capital clause of the Memorandum of Association may be altered for un-issued equity shares and it may create preference shares or vice versa if it is provided in the Memorandum and Articles of the company.
In case of the issued equity share capital such conversion will amount to an arrangement with the members as per section 390 of the Act, and provisions of sections 390 to 393 shall apply.