conversion of pre. shares into equity

Cumulative prefrence shrares can not be converted into equity shares

only Convertible prefrence shares can be converted into Equity shares.

However, If you will tell me the no. of prefrence share holder and type of company, then I have a way to your problem.

If you need further clarification than contact me

Ankur Shah (Practicing Company Secretary)

“Guru Gautam” Bungalow, Inside Parshwa Tower,

Nr. Shyamal Cross Road, 132ft. Ring Road,

Satellite, Ahmedabad – 15

Contact: + 91-9427633901

E-mail: ankurjewel @ gmail.com

Blog: csankur.blogspot.com

sir,

Actually the Co. has entered into the Share purchase agreement  with ABC pvt. ltd and acquired Optionally convertible cumulative pref shares in 2001.The Co. has not opted for conversion in 2003 to equity.Also  the dividend remain unpaid due to non declaration of profits. now the co. just wants to know the rights of pref. shareholders in this case. Articles of ABC also does not contain any rights for pref. shares.

What course of action can the Co. take in this regards?

Kindly comment

Meenu

If we want to change/ amend the articles then what all points we have to check?

meenu

By virtue of provisions u/s 87,  cumulative Pref. Shareholders are entitled to vote on any resolution  placed before the company at any meeting due to unpaid dividend .

Is there any  fix percentage of voting right  needs to vote for resolution?

meenu