Preference shares
This query is : Resolved
25 February 2016
Can a Pvt.Ltd.Company issue preference shares to the persons who are not equity share holders? Can proceeds of preference shares be used for repayment of existing unsecured loans? What is the longest period for which redeemable preference shares can be issued? At what price preference shares be issued? Can preference shares be issued on premium?
25 February 2016
1. Act not restrict conversion of Loan into Preference shares. but practically its not possible to convert.
2. Yes can be issue to a person who is not equity share holder.
3. 20 years
4. yes can be issue on premium
2. Yes can be issue to a person who is not equity share holder.
3. 20 years
4. yes can be issue on premium
26 February 2016
Thanks Divesh.
I don't want to convert Loan into preference shares but I want to use the proceeds from issue of preference shares to repay my unsecured loans. Is it possible?
I don't want to convert Loan into preference shares but I want to use the proceeds from issue of preference shares to repay my unsecured loans. Is it possible?
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