Dear Colleques
Ours is a Public limited Company closed held with an authorised capital of 50 crores divided into equity share capital of 35 crores and Redeemable Preference Share Capital of 15 crores.Paid up equity share capital is 25 crores and paid up preference share capital is ZERO. An amount of 15 crores is credited to the account of share application money pending allottment of shares to be issued as equity share capital over and above 25 crores.
I would like to whether prefrence share capital of 15 crores can be converted into equity share capital so that I do not have increase the authorised capital and pay the stamp duties.
Please advise with relevant section.
S.Giri
CAclubindia
