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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10 April 2008 THE TERMS OF ISSUE OF CCP CAN BE CHANGED BY THE SHAREHOLDERS SINCE IT IS THE SHAREHOLDERS WHO HAVE AUTHORISED ISSUE THE ORIGINAL CCP.
MEMORANDUM AND ARTICLES ALSO SHALL PERMIT SUCH CHANGE IN THE TERMSOF CCP ALREADY ISSUED .
YOU SHOULD ALSO OBTAIN A LETTER FROM CCP HOLDERS ASKING FOR CHANGE IN THE TERMS OF CCP AND SEEKING REDEMPTION.
THEN THERE IS NO VIOLATION OF COMPANY LAW.
R.V.RAO