Is it possible to pass ordinary resolution for capital increase and its subsequent classification into equity and prefrence share capital??
Regards
6 Replies
SkDash
(CS (Member) CWA (Final))
(909 Points)
Replied 06 May 2011
Ganeshan- under which section. For Auth Cap increase, Ordinary res is to be passed-as per me
sakshi
(CS)
(261 Points)
Replied 06 May 2011
But the Company is also goin for subsequent classification of share capital after capital increase.
Kindly suggest
CS Shivi Reddy
(COMPANY SECRETARY)
(175 Points)
Replied 06 May 2011
only ordinary resolution is to be passed in a general meeting.......... bt if the increase in authorised capital is nt authorised by the articles den a special resolution for alteration of articles of the company is to be done.. bt the increase in autorised capital is done by passing ordinary resolution
regards
Shivi
Jyotika
(study study n study)
(147 Points)
Replied 07 May 2011
For Increase the authorised capital just ordinary resolution is sufficient, if no need to change the articles, but if articles needs to be changed, SR is required.
Similarly for authorisation to issue preference shares must be authorised by articles, otherwise alter articles by special resolution giving authority to issue redeemable preference shares. No company can issue irredeemable preference shares or preference shares redeemable after 20 years of issue.
Regards
Csjyotika
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