22 November 2013
Dear Sir, Can we close a company having redeemable Preference share capital without redemption of preference shares. IF YES / NO Please provide me the procedure for the same. Company bearing losses from last two years & Doesn't have sufficient profit.
23 November 2013
no...a redeemable preference share will have to be redeemed. Maximum life of a preference share is 20 years. So anyways at the end of it shares have to be redeemed.
where the company is not in position to redeem preference shares out of profits, it may convince preference share holders to restructure the shareholding by way of subscribing to a new issue of preference shares. the proceeds of new issue can be used to redeem the old issue.