29 October 2008
We have 20000 unclassified shares of Rs.10 each in our Authorised Share capital as mentioned in our Articles of Association. The Articles also mentions that the Direcors may issue prferantial shares to its members. How do we reclassify the unclassified shares into preferrential shares and allot the same. What resolutions and forms have to be filed with the ROC Kindly elaborate with sample resolutions and filled forms
29 October 2008
Unclassified shares are those shares that are kept in abeyance/unsubscribed and may be converted into Equity or Preferance shares as the directors deem fit before they are issued. Form 5 mentions conversion of Shares into stock and reversal of stock into shares but there is no mention of reclassification of unclassified shares into Equity or Preferance shares. That is the whole problem
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