Redemption of Preference Shares out of reserves
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 June 2010
can any one provide me with the draft procedure for redemtion of Preference shares out of reserves?????
09 June 2010
REDEMPTION CHECKLIST
Following points may be taken in to consideration for compliance of section 80.
1. For issue of redeemable Preference shares, ensure that-
a) Articles of Association authorise such issue.
b) Terms of issue provide for redemption.
2. Ensure that redemption is done only out of
a) Profits available for distribution.
b) Fresh issue proceeds for this purpose
3. If articles do not provide , Table A would apply
4. Inform Preference shareholders individually as well as through newspaper about proposed redemption;
5. If redemption is through fresh issue shares should be redeemed within one month of the issue, shares should be redeemed within one month of the issue.
6. Ensure that only fully paid up shares are redeemed.
7. Obtain approval of Board of directors.
8. Premium, if any, on redemption should be sourced from out of profits or securities premium account ;
9. In case of listed companies, the intimation of redemption should be sent to stock exchanges;
10. Ensure that a sum equivalent to nominal value of redeemed shares is transferred to capital redemption reserve account. This does not apply where fresh issue is made to finance redemption.
11. Ensure proper disclosures in Balance- Sheet as per schedule VI requirements;
12. Intimate the Registrar under section 95 within one month of redemptions
13. Ensure that section 77A(8) on buy-back of shares is not hit by redemption by conversion of preference shares.
Following points may be taken in to consideration for compliance of section 80.
1. For issue of redeemable Preference shares, ensure that-
a) Articles of Association authorise such issue.
b) Terms of issue provide for redemption.
2. Ensure that redemption is done only out of
a) Profits available for distribution.
b) Fresh issue proceeds for this purpose
3. If articles do not provide , Table A would apply
4. Inform Preference shareholders individually as well as through newspaper about proposed redemption;
5. If redemption is through fresh issue shares should be redeemed within one month of the issue, shares should be redeemed within one month of the issue.
6. Ensure that only fully paid up shares are redeemed.
7. Obtain approval of Board of directors.
8. Premium, if any, on redemption should be sourced from out of profits or securities premium account ;
9. In case of listed companies, the intimation of redemption should be sent to stock exchanges;
10. Ensure that a sum equivalent to nominal value of redeemed shares is transferred to capital redemption reserve account. This does not apply where fresh issue is made to finance redemption.
11. Ensure proper disclosures in Balance- Sheet as per schedule VI requirements;
12. Intimate the Registrar under section 95 within one month of redemptions
13. Ensure that section 77A(8) on buy-back of shares is not hit by redemption by conversion of preference shares.
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 June 2010
thnks dear but i want full procedure in document to be followed as my company is not listed. can u provide me the whole procedure in word file inclusive of notice and other related matters???
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
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Opting our of sec 44AD
- Value of property in capital gain
- Copyright software
- LC charges in relation to Asset purchased should be Capitalised ?
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- Transporter Declaration form
- Regarding TDS Applicability For Director Remuneration
- Multiple trade mark
- TDS APPLICABILITY......
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
