Dear All,
The company is having Authorised capital of Rs. 15 Crore 1.5 crore equity shares of Rs. 10/- each and company wants to issue the preference shares is it necessary to increase capital as a authorised capital for preference shares?
and if company dont want to increase the share capital of 15 Crore can the company go for classification aur what can be the way out for the same and what will be the procedure of reclassification its a pvt ltd company.
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Authorised capital reclassification
Replies (4)
Dear Aditi,
If you want to issue preference shares than first you will have to increase the authorised share capital.
And please clarify the remaining part of ur question I am unable to get it.
Use thank button if you want to thank.
If your paid-up capital is less than the authorised capital and you do not wish to issue equity shares, you can reclassify unissued equity shares as preference shares by cancelling unissued equity shares and simultaneous creation of preference shares of equal amount. You will have to pass ordinary resolution for the same and file form 5 with ROC.
I just want to know the fees for filing form 5 for recalssification.........
Filing fee will be normal as applicable to other documents (max. Rs.500).
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