Regarding authorized capital
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 September 2013
Dear Sir,
If Authorized & Paid up capital of Private Limited company 40 lacs and company enjoy limit of 12 crore with bank, now bank insist to increase the capital up to 4 crore. my question is can we issue preference share for 12 years lock in period instead of increase equity share capital. it is allowable and bank can accept or not.
If Authorized & Paid up capital of Private Limited company 40 lacs and company enjoy limit of 12 crore with bank, now bank insist to increase the capital up to 4 crore. my question is can we issue preference share for 12 years lock in period instead of increase equity share capital. it is allowable and bank can accept or not.
Ajay Mishra
(Expert)
21 September 2013
Hi
Preference shares is also part of authorised share capital. So any issue pr preference shares will also come under share capital of the company.
You can issue debentures for the said purpose.
Preference shares is also part of authorised share capital. So any issue pr preference shares will also come under share capital of the company.
You can issue debentures for the said purpose.
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