ISSUE OF DVRs😵

can a company issue DVRs In case it has defaulted payment of interest in term loan from bank in month of June 2017 but remedied in November and now wants to issue DVRs in December 2017.???????
🙏
Replies (3)
No, DVRs can be issued only after expiry of 5 yrs from the end of FY in which default made good... As Per Your Query , Co. keep defaulting in payment Of Principal & Interest From Past 6 Months and it was paid on Nov '17.So Till the end of 5 Yrs From FY Ie. 5 Yrs From 31-3-18 ( after 31-3-23) it's Restricted to issue any shares with differential voting rights...(Pvt companies are exempted) . Sec.43(a) read with Rule 4 Cos(Shares capital and Debentures Rules), 2014
thanks Chirag but can't we say the company has remedied it's default before issue
No, If this is allowed then whole purpose of law shall be defeated and as per general interpretation, Rule 4 Says " If company makes any default in Payment of interest " here one thing to note that Default in this context stands for before issue and In your query it's done in same year when Co would like to issue shares with DVRs ,So Until and unless 5 Yrs Not Expired from the end of FY in which default made good... It can't issue share with DVRs, I hope it clears to you!!

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details