banner_ad

Reclasification of shares

This query is : Resolved 
Profile Image

Profile Image

(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?
Profile Image

CS Ankur Srivastava

Profile Image

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....
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
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
11 May 2026
Post office

Post office

Anakapalle

Others

View Details
Company
11 May 2026
CA Dropout

Patron Accounting LLP

Pune

CA Inter

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details