AS per sec 85, there are 2 kinds of shares.
but we have a co. formed in 1952 which has, besides eq and cum pref shares, 3rd kind of shares i.e. deffered shares.so after enactment of co. act 1956 what should be done with such shares?co. is inoperative and want to close by taking the benefits of a notification of CLB regarding closing inoperative co.
Your Deffered shares will be treated as "Equity Share Capital" provided it doesnot fall in Section 85(1) because Section 85 (2) is clearly stating "Equity share capital" means, with reference to any such company, all share capital which is not preference share capital.
Regards,
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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