Esteemed Experts,
Company X issued convertible preference shares 5 year ago, fully paid. Now it's matured and 1/5th has been converted to share capital. BAl. shares neither redeemed or issued afresh. Can the company forfeit bal. shares capital? please guide
Thanks in advance
1 Replies
Chirag
(Professional)
(1979 Points)
Replied 02 June 2022
No ,In Any Circumstance Fully Paid Up Shares Can't Be Forfeited , If 1/5 is representing a conversion price or valuation based formula then it can be done,like 5%,1000 CCPS issued at Rs.10 ,Conversion price is Rs 2000 Per equity shares (1/5 th Value ) then automatically CCPS deemed to be converted ... otherwise shareholder itself don't want to take remaining 80% then Cash can be paid or rollover can be done or reduction/buyback is possible (but generally its not happened in that way )
Recent Topics
- Urgent doubt on GST
- Profit or Loss on Sale of Assets Accounting treatm
- Clarification on RCM on Rent Payment for QRMP Deal
- Reclaimed itc in gstr9
- Gamification in Accounting Software: Boosting Enga
- I want to knw Hsn code and gst rate of resin produ
- Schedule FA clarification
- Income tax on freelance income from crypto
- ITC temporary reversal and reclaim
- Query on Transactions
Related Threads
CAclubindia
