Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
21 January 2013Can equity shares be converted to redeemable preference shares.
This has been asked in CS December 2012 exam of CL of Executive stage carrying 4 marks. Request your considered thoughts please.
Regards,
shristi
(executive)
(96 Points)
Replied 21 January 2013
The Act does not have any provisions for conversion of equity shares to preference.
So the Company may be able to do so but through buy back of equity shares followed by issue of preference shares.
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