reconstitution of authorised capital

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prerna agarwal (Querist)
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29 June 2011 the authorised capital of my company is as follows:
150000 equity sharesof Rs.2 each
100000 5% Non. cumulative Pref.Shares of Rs.2 each.

the company had issued 50000 pref. shares which was to be redeemed during march 2011.
The company doesnot have sufficient profits to redeem the same.
My query is whether the pref.shares due for redemption be converted into equity.What compliances are required for it.Also, if the above is converted into equity sh., the authorised capital of equity will increase.is reconstitution of authorised capital is possible.wat compliances are required.

CS Bijoy

CS Bijoy (Expert)
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29 June 2011 According to me if any option is given at the time of issue of the share than only it can be converted.

Beside it can be converted in to equity on after obtaining the consent of the shareholder particular class of shareholder meeting.

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