Conversion of non convertible preference shares into equity

Narayan R Joshi (Company Secretary) (41 Points)

02 February 2015  

Dear All Learned Professionals.

Company A is a Listed Public Company. The Company had issued 25% cumulative redeemable non convertible preference shares to one of its shareholder. The Company finds it very difficult to pay the yearly dividend.

The Company wants to convert the 25% cumulative redeembale non convertible preference shares into equity shares before its redemption

Can the Company do so ?

If yes, what is the detailed procedure as per the new Companies Act, 2013

An early reply is solicited immediately