Issue of preference shares
joseph david
(Querist) 04 January 2013
This query is : Resolved
A Listed company shareholders in the general meeting authorized board to issue redeemable shares upto 25 crores as per the terms and conditions as the board may decide in their meeting in year 1995-96. The Board has issued 5 crores of redeemable preference shares with a coupon rate of 11% to Banks and Financial Institutions in the same year and redeemed the shares afterwards.
Now can board reissue redeemable preference shares in the current year to promoters without taking the approval of shareholders.
OR
Balance 15 crores redeemable shares can be issued to promoters without taking shareholders approval.
Thanks in advance
Joseph David
Raj Kumar Makkad
(Expert) 04 January 2013
If there had been no time limit in the issuance of the redeemable preferential shares during the meeting held during the year 1995-96 then there is no need to get fresh approval otherwise approval is must.
