Pre Mature redemption of preference shares

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Deepika Bhardwaj (Querist)
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27 May 2009 Dear Professionals

Can cummulative preference shares redeemable after 20 years be redeemed before the expiry of 20 years.

can anyone provide me the checklist in caxse of pre mature redemption of preference shares or redemption of preference shares.

Best regards
Deepika Bhardwaj

CS. Ashish Shah

CS. Ashish Shah (Expert)
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02 June 2009 Dear Deepika,

Now the preference shares can not be issued which are redeemable after 20 years.

For the redemption of the preference shares, its issue terms needs to be checked.

If the redemption is allowed by the Board, then pass a Board Resolution for its redeemption through internal accruals or through a fresh issue of shares (say Rights Issue)

Regards,

Ashish Shah

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