Procedure of conversion of preference shares into equity sha

This query is : Resolved

kalpana (Querist)
Follow

23 December 2009 i need to know the full procedure for conversion of preference shares into equity shares. company has Rs. 4,00,000 prefernce shares. as per articles of association, these shares are not convertibe preference shares.

Rasesh

Rasesh (Expert)
Follow

23 December 2009 If the shares are not issued as convertible preference shares, then they cannot be converted into equity.

The only option available is redeem the preference shares and issue of new equity shares.

kalpana

kalpana (Querist)
Follow

24 December 2009 if i amend the aricles of association and make these preference shares as convertible preference shares...??

Upgrade to CAclubindia Pro. Subscribe Now!