Dear all,
I want to issue preferential shares at premium to more than 200 persons (i.e, not through private placement) for an unlisted public company. The shares will carry fixed coupon rate and are compulsorily redeemable after 5 years. What can be tax effect for such coupon rate and can I introduce lock-in for redemption? What can be the maximum coupon rate attached to the shares? The company can withstand upto 15% coupon rate. Any other Companies Act implications are there?
CAclubindia
