Suraag Nair (Article) (167 Points)
04 February 2012Friends,
We have issued Fully Convertible Preference Shares few years ago. As per the terms and conditions of issue, the shares are liable for conversion on today's date.
We would like to know the procedure for the same giving reference to the related sections of the companies act 1956
What if all my authorized equity capital is already subscribed?
Regards,
Suraag
CS Rajveer Rai, Gurgaon
(CS)
(646 Points)
Replied 04 February 2012
Please file form 2 with ROC under section 95 allot share for consideration other than cash . write consideration preference share in other items of coloum 4 and value of preference shares also below coloum. No need to increase authorised capital as total paid up capital shall remain same as you have to fill new paid up break-up in form where you will fill 0 in preference catogery and increase equity paid up with amount equal to preference shares.
Suraag Nair
(Article)
(167 Points)
Replied 06 February 2012
Thank U Mr. Rajeev. Does the Conversion require any resolution to be passed? If yes, ordinary/special ??
CS Rajveer Rai, Gurgaon
(CS)
(646 Points)
Replied 06 February 2012
yes please pass board resolution for conversion and allotment of share.
CAclubindia
