JOSEPH DAVID (GM FINANCE) (286 Points)
09 January 2009A listed company is having authorized capital-divided into equity and redeemable preference share capital. Earlier it has issued and redeemed preference share capital. Can they issue now redeemable preferene share capital to promoters and associate companies without going for shareholders' approval
thanks in advance
Joseph david
Jaideep
(Service)
(1368 Points)
Replied 14 January 2009
For every futher issue of capital whether equity or preference it requires special resolution.
And where no such special resolution is passed, if the votes cast (whether on a show of hands, or on a poll, as the case may be) in favour of the proposal contained in the resolution moved in that general meeting (including the casting vote, if any, of the chairman) by members who, being entitled so to do, vote in person, or where proxies are allowed, by proxy, exceed the votes, if any, cast against the proposal by members so entitled and voting and the Central Government is satisfied, on an application made by the Board of directors in this behalf, that the proposal is most beneficial to the company.
Accordingly Compnay has approach its sharehoders for further issue of Capital.
CAclubindia
