Clubbers,
Please guide me with the secretarial procedure which has to followed and papers to be prepared for the following business development.
A private limited company with:
Authorized Share Capital: Rs.31 Crore
Paid-up Share Capital: Rs.30,12,70,000/-
has decided to allot "Preference Share Capital" of Rs.50 Crores redeemable at the option of the company with 1% dividend.
Please help me. It is quite urgent. I will be very grateful for your help.
1. Increase authorised share capital by preference capital of Rs.50 crores. File Form 5 and 23 (if applicable) with ROC.
2. Pass Board resolution for issue/allotment of preference shares.
3. File Form 2 with ROC and enter details in register of members.
Pl however note that company cannot issue preference shares which are redeemable after expiry of 20 years from the date of issue [Sec.80(5A)].
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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