banner_ad

Preference shares

This query is : Resolved 
Profile Image

Profile Image

(Querist)
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?
Profile Image

CS Divesh Goyal

Profile Image

CS Divesh Goyal (Expert)
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
Profile Image

Sanjeev Agarwal

Profile Image

Sanjeev Agarwal (Querist)
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?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


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


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
11 May 2026
CA Dropout

Patron Accounting LLP

Pune

CA Inter

View Details
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details
Company
10 May 2026
Finance specialist

Right way solution

Ajmer

CA

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details