Conversion of non convertible preference shares into equity

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

Replies (2)

Yes you can do so u/s 48.

 

Dear P C Agrawal Sir, but how Chapter VII (i.e. for Preferential Issue) of ICDR Regulations will be complied with?

  

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