conversion of preference share

shubhra (Company Secretary) (64 Points)

01 April 2010  

Can u answer my doubt? Does a company requires to create capital redumption reserve on conversion of preference shares into equity shares?

If yes then what to do incase of insufficient profits in current year. OR

Can a company 1st redeem its preference share and then issue equity shares to the same preference shareholders. (in this case is it neccesary to create capital redumption reserve).

pls ans.