issue of preference share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 January 2011 Can a newly incorporated pub limited company issue redemable preference shares?
If Yes , what is the procedure.

CS Taher

CS Taher (Expert)
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12 January 2011 yes a newly incorporated Company can issue redeemable preference shares after getting Certificate of Commencement.

Procedure-
1. Call board meeting to take consent of all Directors for the increase of paid up Capital.
In case of increase of Authorised Capital pass resolution for fixing Date of EGM for passing Special Resolution for altering Clause V of Memorandum & Clause IV of Article of Association & increase of Authorised capital.

2. Issue notice to all members in case of EGM. Difference between the date of Notice and Date of EGM shall not be less than 21 clear days.

3. Hold EGM & Pass Special Resolutin.

4. Filed form 23 within 30days of passing of Special Resolution with ROC(attach Resolutions both board & members, attach notice & Explanatory Statement"sec-173,2", Attach altered Memorandum & Article).

5. After filling form 23 File Form5 for increase in Authorised Capital.
In case of increase of paid up Capital file form 2 for return of allotment with 30 days of allotment (attach Resolutions both board & members, attach notice & Explanatory Statement, Attach altered Memorandum & Article)

It is not mandatory to attach resolution & notice with Form 5.