Participative preference shares

Save Share

This query is : Resolved

jayesh sharma (Querist)
Follow

19 November 2013 Dear Members,

Please tell me how to ascertain that preference shares are Participative Preference Shares? and what is the procedure for issue of participative preference shares?

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

19 November 2013 just read the shareholder's agreement or the terms agreed to for issue of preference shares. if the preference shareholders have a right to claim dividend over and above the fixed dividend, such shares are called participative preference shares.

the procedure remains same. just the dividend clause will be suitably worded.

jayesh sharma

jayesh sharma (Querist)
Follow

19 November 2013 Thanks for you reply. Further if i want to issue Participative preference shares, than is it compulsory to mention the same as prefix on the MOa and the share certificate?

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

19 November 2013 yes it is advisable that they are separately classified and prefixed accordingly.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!