Company need to Redeem the Preference Shares of Rs.17,000
Company can Redeem by issuing Equity Shares of Rs.10,000 and use Amount in secuirty Premuim Account to Rs.7,000/-
Pls reply to it ......
i am unable to find a correct ans
Rajiv (Student) (62 Points)
16 February 2012Company need to Redeem the Preference Shares of Rs.17,000
Company can Redeem by issuing Equity Shares of Rs.10,000 and use Amount in secuirty Premuim Account to Rs.7,000/-
Pls reply to it ......
i am unable to find a correct ans
Rohit Kumar
(professional)
(23 Points)
Replied 16 February 2012
campany can do so because according to sec 80 which is for redemption of preference share company can redeme share out of fresh issue or acumilative profit that is free reserve but not securities premium amt which can be used for the purpose of premium for redemption of share if share are redemed at premium
CAclubindia
