18 January 2010
Preference shares can be redeemed at discount. If the discount was not decided as the original terms of issue, then obtain approval for modification/variation of rights with the preference shareholders and then redeem them at a discount.
19 January 2010
Thank you for your reply. But whose approval has to be obtained, is it board's approval or shareholders / preference shareholders approval and with what majority resolution can be passed? any forms to be filed with ROC? Pls reply.
19 January 2010
Approval from the respective shareholders has to be obtained for variation of rights of those shareholders. The Board has to pass a resolution to that effect. No forms are to be filed with ROC for variation of rights. Post redemption, Form 5 has to be filed with ROC.
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