Redemption of pref shares
This query is : Resolved
18 January 2010
can preference shares be redeemed at a discount? if so, what is the procedure to be followed u/the co.s Act?
can preference shares be redeemed at a discount? if so, what is the procedure to be followed u/the co.s Act?
18 January 2010
Preference shares can be redeemed at discount. If the discount was not decided as the original terms of issue, then obtain approval for modification/variation of rights with the preference shareholders and then redeem them at a discount.
19 January 2010
Thank you for your reply. But whose approval has to be obtained, is it board's approval or shareholders / preference shareholders approval and with what majority resolution can be passed? any forms to be filed with ROC? Pls reply.
19 January 2010
Approval from the respective shareholders has to be obtained for variation of rights of those shareholders. The Board has to pass a resolution to that effect. No forms are to be filed with ROC for variation of rights. Post redemption, Form 5 has to be filed with ROC.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Exiting partner in partnership firm in gst portal
- CLOSING STOCK QUERY
- Traces submitting correction statement error
- TDS _Long term Capital Gain ref.sec 214 Table 2
- Taxability of credit in canara bank ET & T section (NRO)
- Loss of interest in PF transfer from EPFO to Trust
- ITR-Capital Gain
- IT returns for fresh job holders
- F&O reporting in ITR
- ITR-3 File/Error Found
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
