Issue of preference shares

Resolutions 728 views 1 replies

Annu Tiwari

Company Secretary

46 Points Joined August 2013

Dear All,

If a company is issuing preference shares for the first time, should it be issued to the existing shareholders only or to a new set of shareholders. What all compliances are to be done as per the NEW Companies Act, 2013.

Replies (1)

P C Agrawal

Registered independent director Past Ch

8229 Points Joined March 2007

Section 81 of Companies Act 1956 deals with further issue of shares and the corresponding provision is contained in Section 62 of Companies Act 2013. However, Section 62 of the new Act has not yet come into force and hence you have to follow existing procedure as per 1956 Act only.