10 April 2010
Sir In case of Amalgamation Merger do the old company's Preference shareholders need to be paid at book value or they can be paid any agreed amount ?
11 April 2010
Ideally the preference shareholders of the transferor company should be issued shares in the transferee company on the same terms and condtions.
If the companies want to redeem them and not issue shares, then they should be redeemed on the basis of the terms and conditions decided at the time of issue of such shares or as decided in the preference shareholders meeting convened at the instructions of the High Court. The scheme of amalgamation should be framed accordingly.
CAclubindia
