Issue of Preference Share without bifurcation of Authorized Capital

Dear Sir,

A company has issued Preference Shares to a Foreign Investor in FY 18-19 without having a designated Authorised Capital for preference Shares.

MD contends that MOA has allowed to issue share capital at their discretion designating as Preference share or Equity share on the same Authorized capital for equity share.


A/to MD

Authorised Share Capital.
500000shares of Rs 10 each.....
Issued Subscribed and paid up..
350000 Equity shares of Rs 10 each ..
150000 Preferably shares of Rs 10 each.


is it possible? if not why?