Can a company convert their preference share into equity
This query is : Resolved
24 March 2012
Sir,
I want to know that can a company convert their Preference share into Equity share or not. Under which section of companies act.
I want to know that can a company convert their Preference share into Equity share or not. Under which section of companies act.
25 March 2012
Hi
Yes, you can subject to the provisions of their articles. Section 80 deal with preference shares.
A company limited by shares may, if authorised by its Articles, issue preference shares. This means that a public company or a private company may issue preference shares only if its Articles authorise to do so.
Convertible preference shares.—These shares may be converted into equity shares as per the terms and conditions of their issue.
Non-convertible preference shares.—These shares are not convertible into equity shares but have the preferential rights to payment of capital in the event of liquidation of the company or otherwise.
Yes, you can subject to the provisions of their articles. Section 80 deal with preference shares.
A company limited by shares may, if authorised by its Articles, issue preference shares. This means that a public company or a private company may issue preference shares only if its Articles authorise to do so.
Convertible preference shares.—These shares may be converted into equity shares as per the terms and conditions of their issue.
Non-convertible preference shares.—These shares are not convertible into equity shares but have the preferential rights to payment of capital in the event of liquidation of the company or otherwise.
26 March 2012
Thanks Sir, for your reply......
This is very useful to me
This is very useful to me
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- TDS _Long term Capital Gain ref.sec 214 Table 2
- Banking Related Issue
- Traces submitting correction statement error
- ITR-Capital Gain
- ITR-3 File/Error Found
- Rent claimed on building given on permissive possession basis
- IT returns for fresh job holders
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
