Reclasification of shares
This query is : Resolved
Gargi Ranade
(Querist)
26 October 2012
We are Pvt. Ltd. , EOU and 100% subsidiary of Japanese company. Our Authorised share capital is divided into Equity Shares and Preference Shares .
90% of Preference shares were redeemed over the period. We want to infuse more equity funds in the company.
Can we reclasify the Preference share( already redeemed) in the Equity shares?
Does such reclasification attracts payment of stamp duty ?
Intial capital was partially issued under approval route & partially under automatic route , do we need to take RBI permission for above said reclasification?
What is the procedure under Fema & Companies act for such reclasification?
Is it essential to get shares valued before issuence?
90% of Preference shares were redeemed over the period. We want to infuse more equity funds in the company.
Can we reclasify the Preference share( already redeemed) in the Equity shares?
Does such reclasification attracts payment of stamp duty ?
Intial capital was partially issued under approval route & partially under automatic route , do we need to take RBI permission for above said reclasification?
What is the procedure under Fema & Companies act for such reclasification?
Is it essential to get shares valued before issuence?
CS Ankur Srivastava
(Expert)
27 October 2012
First of all, reclassification of Authorised Capital does not attracts stamp duty.
Secondly, if 10% preference shares are still exist, you cannot converty those preference shares into equity....
Secondly, if 10% preference shares are still exist, you cannot converty those preference shares into equity....
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