Conversion of preference shares into equity shares

1.You can convert them into equity only if the terms of issue permit it.

2. As far as ROC is concerned only return of allotment will be there.

3.This depends upon the terms of issue. 

Thanks Mr. Srinivasaraghavan,

Conversion is provided by Shareholders agreement, Form 5 is not required to be filed? only Form 2 will suffice the matter.

Please intimate.

You may file Form 5 for Reclassification of shares, if your Equity share capital cannot accommodate such conversion

Thanks Lineesh,

we have sufficient authorised capital to meet conversion, even than is it necessary to file Form 5 under the head redemption of prefernce shares?

under which heading Form 2 sholud be filed:

share allotted in cash or consideration otherwise than in cash?

I feel the consideration is cash since otherwise the Company has to redeem  the shares in cash!  

dear members

please guide me about the procedure for conversion of preference shares into equity.

shall we need to file form no 5 and form no 23 with the concerned registrar of comnpanies?

is it possible to reclassify equity shares to preference shares?  If so, what is the process for the same

yes yes yes yes

Dear members

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a company A is subscribe a pref. shares in B company. and B company has investment in C company.

at the time of redemption of pref. shares can B company given his investment of C company to A company in liew of the pref. shares redemption ?

in our private ltd. company there is conversion of Preference Shares into equity shares, for this we have to reclassify our Authorised Capital, and after doing this i have to issue new equity shares at premium.please guide me necessary filing with ROC in the whole process.

for re-classification of authorised share capital you have to file 23 and Form 5 with ROC.

In form 5 u have to show cancellation of the portion which you want to reclasify and in next heading you have to show as reclassfication of authorised share capital.

Dear Friends,

Could you please guide me:

1. How to convert preference shares into equity. 

2. For conversion do we need to increase Authorised Capital ?

I am providing the particulars of the Company

Authorised Share Capital   61 Crore
 
Equity Share Capital    1.30 Crore (in Rs)

Preference Share Capital  60 Crore (in Rs) 
 
Paid up Capital   46.30 Crore
 
Equity Share Capital    1.30 Crore (in Rs)

Preference Share Capital  45 Crore (in Rs)

OR

we can file only Form 5 under reclassification of shares

and then Form 23 & 2

Your prompt reply will be highly appreciated.

Best regards,

Swati