issue of preference shares

Totally Agreed with Ankur Sir...

Very useful information by Mr. Ankur. Thanks a lot

Dear all,

I want to thank all of you for your consideration and reply.

Actually this question was asked by my sir to me and now he want to knw where in the law it is written that Statement in lieu of prospectus is required...???

I read sec. 70, 44, 80, 81, etc. but nowhere it is written. 

Infact my sir is saying that we need not to follow sec. 80 and 81 regarding that. If it is so then where in the law it is mentioned ?

Kindly reply.

Regards,

Shridhi Jain

For the issuance of Preference Shares, Section 80 need to be complied with and in case the preference shares are to be issued on preferential basis Special resolution is required under section 81(1A).

No Statement in lieu of prospection would be required in case of issuance of shares on preferential basis.

what is the procedure for issue of preference shares u/s 80 by a listed company to select shareholders (other than promoters).