redemption of Preference Shares

The redemption terms and conditions will done accordance to the terms and conditions of the share application form through whch the pref shares are raised. If you want to change the terms and condition, you can pass the same in an EGM stating that the same will be redeemend with 30% discount.  The terms of discount and change should be passed in the EGM as special resolution.

Once the resolution is passed as Special, you have to file Form 23 for registering the resolution.

Once the terms are finalised in the EGM with 3/4th of majority, you can redeem the prefeence shares at a discount.

This is my view, kindly rectify if I am wrong :)

Regards

CS Jithesh

As per Section 80, Preference can be redeemed as per Articles of the Company and terms of redeemption if any. Thus check if articles so provide and get the approval of Prefernce share holder for redeemption of shares at discount.

Jagruti is right, approval in class meeting is also required.

Dear Experts

What are the Income Tax implications on the above redemption?

Thanks in Advance