Conversion of Preference Shares
Querist :
Anonymous
(Querist) 31 May 2011
This query is : Open
1. Whether conversion of a 1% non commulative convertible preference shares of Rs.100/- within a period of three years from the date of issue into one equity share of Rs.10/- at premium of Rs.90/- as per the term of issue is reduction of share capital whcih require court permission by virtue of section 95 of the Companies Act, 1956 ? if not, what is the procedure of conversion with ROC..
2. Whether the redeemption period of redeemable preference shares may be extend to 5 years whcih is 3 years as per the terms of issue, if both the equity and preference shareholders are agree for the same.?
