Issue of Equity shares without voting right.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2009 A private company wants to raise money through equity. But does not want to dilute the voting interest of the existing members. How can he do so.
Can Equity shares without Voting rights be issued as per section 88 of companies act. What is the procedure?
Can preference shares be issued without paying any interest on them. Suggest.

RAJESH SHUKLA

RAJESH SHUKLA (Expert)
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15 November 2009 dear,

the 80% corum should be in voting. without voting rights u cannot issued any equity.

in case of preference shares, if the prefernce share is non-redeemable than interest not paid.