Doubts pertaining to preference shares!!!

Swati Sharma (TRAINEE) (328 Points)

06 February 2016  

Dear Friends,

A Pvt. Co. willing to issue Preference shares to other person(not member of the Co.). I have few queries as below:
1. Do these preference shares needs to be issued under Private Placement Offer.
2.Can prefence shares be issued other then consideration in Cash. 
3. Do preference shareholders needs to be paid fixed % of profits even when the Co. doesnot declare dividend.
4. Are Pref. shares transfer in the same manner as equity shares

5. will redemption of pref. share leads to reduction of capital

6. Can pref. shares be converted into shares with diffrential rights.