redemption of Preference shares convertible into equity

This query is : Resolved

sharma_vikascacs (Querist)
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31 March 2008 Dear ALl,
I have an important query .

If we redeem a compulsorily convertible preference shares (in to equity) ,.because of mututal adjustment with the Prefernce shareholder is it contravantion of companies Act..(the issuing company is pure private limited company)..

Responses are solicited urgently....

R.V.RAO

R.V.RAO (Expert)
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22 April 2008 THE TERMS OF THE CCPS CAN BE ALTERED BY THE ISSUING AUTHORITY ie SHAREHOLDERS WITH A LETTER BEING PLACED ON RECORD AS A SUPPORTING REQUEST FROM PREF. SHARE HOLDERS FOR REDEMPTION INSTEAD OF CONVERSION.
ENSURE THERE IS A PROVISION IN ARTICLES TO THIS EFFECT.
OR ELSE ALTER ARTICLES FIRST.
R.V.RAO