Classification

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2012 The paid up capital of the company consist only of equity shares.can the Company reclasify those equity shares into equity and preference shares?

Reaply SAP.

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
Follow

25 September 2012 Reclassification of equity shares into equity and preference shares is possible provided same is (1) authorised in AOA, (2) applicable resoultoin is passed at Board Meeting and (3) filing with ROC within due date.

Aalok Chhaperwal

Aalok Chhaperwal (Expert)
Follow

25 September 2012 Company can reclassify its share capital.
Procedure -
1. tak a board meeting and pass the necessary resolution and also approve the notice to convene the general meeting.
2. hold general meeting and pass the ordinary resolution or spl resolution (as per AoA),
3. file Form 5 together with Form 23 (if passed by spl resolution) with in 30 days.

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2012 My question is whether the company can reclassify its existing paid up capital.

Suppose Auth cap Rs.50 Lac = Equity Rs.50 Lac , Paid up Rs.50 Lac = Equity Rs.50 Lac .

Then can a Company do like Auth Cap = Eq Rs.30 Lac and Pref Rs.20 Lac , paid up= Eq Rs.30 Lac and Pref Rs.20 Lac.

Reply SAP.

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
Follow

25 September 2012 Yes, reclassification can be done subject to compliance of all points stated above.

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2012 Will section 390 , 391 applicable while reclassification of paid up capital?

Reply ASAP.

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
Follow

25 September 2012 Section 390 and 391 applicable when the matter is referred to CLB and Court.

Why U are connecting to Section 390 and 391?

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2012 Because it is a re-classification in the issued capital? and sec 390 prov the arrangemnet between the co and its members.

Upgrade to CAclubindia Pro. Subscribe Now!

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
Follow

25 September 2012 Yes the company can reclassify its Authorised share capital and issue shares accordingly, for this MOA needs to be amended and form 5 is to be filed.

Online classes for CA CS CMA