Dear friends, If a company have issued non convertible preference shares and accumulated dividend on the same due to losses, what will be the best thing which could be done with preference shares?
a)reedeem those shares
b)transfer them into convertible (is this possible?)
c)some other option..plz suggest
As these are Non Convertible; upto my understanding wait till the due date and redeem them.
Regards,
Others views solicited.
But redemption from profits is allowed as per section 80 and company is having huge losses.
Fresh issue can be the option?
Fresh issue can be an option under section 80 of the Act.
Thanks and regards
Deepak Maharishi
Dear All,
We are unlisted Public Company with 7 members and want to issue Non-convertible Redeemable Preference Shares only to 1 existing shareholder. Can the company do so ?
Please let me know the step-wise procedure & compliance required for the same.
Whether Companies (Preferential Allotment) Rules, 2011 OR Section 81 (1A) shall be applicable ?
Please help. Waiting for you swift reply.
CAclubindia
