procedure
Shah Trupti
(Querist) 05 June 2009
This query is : Resolved
hi Good Afternoon i want to know the latest full procedure for redemption of existing Preference Shares
Shah Trupti
(Querist) 05 June 2009
hi Good Afternoon i want to know the latest full procedure for redemption of existing Preference Shares
A V Vishal
(Expert) 07 June 2009
80. Power to issue redeemable preference shares
(1) Subject to the provisions of this section..............
Subject to the provisions of this section, the redemption of preference shares thereunder may be effected on such terms and in such manner as may be provided by the articles of the company.
(3) The redemption of preference shares under this section by a company shall not be taken as reducing the amount of its authorised share capital.
(4) Wherein pursuance of this section, a company has redeemed or is about to redeem any preference shares, it shall have power to issue shares up to the nominal amount of the shares redeemed or to be redeemed as if those shares had never been issued; and accordingly the share capital of the company shall not, for the purpose of calculating the fees payable under 3[section 611], be deemed to be increased by the issue of shares in pursuance of this sub-section:
Provided that, where new shares are issued before the redemption of the old shares, the new shares shall not, so far as relates to stamp duty, be deemed to have been issued in pursuance of this sub-section unless the old shares are redeemed within one month after the issue of the new shares.
(5) 2[The capital redemption reserve account] may, notwithstanding anything in this section, be applied by the company, in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares.
4[(5A) Notwithstanding anything contained in this Act, no company limited by shares shall, after the commencement of the Companies (Amendment) Act, 1996, issue any preference share which is irredeemable or is redeemable after the expiry of a period of twenty years from the date of its issue.]
(6) If a company fails to comply with the provisions of this section, the company, and every officer of the company who is in default, shall be punishable with fine which may extend to 5[ten thousand rupees].
