Request expert advice on the following issue raised
The Company has reclassified existing authorised share capital of rs. 10 lakhs(1 lakhs equity shares of rs. 10 each) to revised share capital of rs.1o lakhs (80k equity shares of rs. 10 each and 20k preference shares of rs. 10 each) and passed special resolution for the same. And also subsequently allotted and filed PAS3 for issue and allotment of preference shares.
MGT 14 is approved by ROC but SH7 has been sent for resubmission on the ground that " No conversion/re-classification of Equity Shares into Preference Shares or Vice Versa has been permitted under the provisions of the Companies Act, 2013 (even not provided in Section 61 of the Act), therefore, Pl explain why not e-form may be considered for rejection."
In my view the company is authorised to alter MOA vide Section 13 of Companies Act 2013 but maybe filing done by company need to be reseen.
Can the company proceed even without filing SH7? as the total Authorised capital has not changed.
Or Do the company have to file two SH7 forms - one for cancellation of equity share capital and another for increase of preference share capital.
CAclubindia
