Company formation

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CS Amit Srivastava (Querist)
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07 September 2012 Dear all

I want to incorporate a private limited which is a company limited shares having only preference shares.

Can I do?

Regards

Amit Kumar

Ajay Mishra

Ajay Mishra (Expert)
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07 September 2012

Hi

same procedure as applicable to equity shares.

CS Amit Srivastava

CS Amit Srivastava (Querist)
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11 September 2012 But Sir private company can not be incorporated with preference shares only at the AGM only equity members are entitled to vote except for limited purpose where preferences shareholders have right to vote

please correct me

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Ajay Mishra

Ajay Mishra (Expert)
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11 September 2012 Hi

I think you can incorporate company with preference shares and equity shares both.

If i am wrong, kindly confirm.

CS Amit Srivastava

CS Amit Srivastava (Querist)
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11 September 2012 I think a company can have equity and preference but can not only be preference shares as authorized capital because as regard AGM only equity shareholders can vote not by preference share as per section 87 requires two case where pef shareholders have right to vote inspite of that perf shareholders are not allowed to vote at AGM.
in other word a company can not have only pref shares capital