neha (CS) (292 Points)
09 November 2016A company has issued CCDs on a preferential basis, now the CCDs are due for conversion into equity shares.
Does the company have to again follow the procedure of issuing the shares on preferential basis, since these shares are issued in lieu of the CCDs as per the investor agreement.
Kamal Kumar
(B.Com)
(647 Points)
Replied 09 November 2016
Hi Neha
No approval of shareholder is required for conversion of CCDs into Equity shares as the Company has already obtained the approval of shareholders at the time of issuance of CCDs.
you can convert the same at the board meeting.
CAclubindia
