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Can fully paid preference shares forfeited?

23 May 2022

Esteemed Experts,

Company X issued convertible preference shares 5 year ago, fully paid. Now it's matured and 1/5th has been converted to share capital. BAl. shares neither redeemed or issued afresh. Can the company forfeit bal. shares capital? please guide

Thanks in advance

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1 Replies

Chirag (Professional) (1979 Points)
Replied 02 June 2022

No ,In Any Circumstance Fully Paid Up Shares Can't Be Forfeited , If 1/5 is representing a conversion price or valuation based formula then it can be done,like 5%,1000 CCPS issued at Rs.10 ,Conversion price is Rs 2000 Per equity shares (1/5 th Value ) then automatically CCPS deemed to be converted ... otherwise shareholder itself don't want to take remaining 80% then Cash can be paid or rollover can be done or reduction/buyback is possible (but generally its not happened in that way )