Reg:redemption of preference shares

Priya Sharma (Company Secretary & Student.MBA)   (998 Points)

06 September 2011  

One of the listed Company has issued Non-cumulative redeemable preference shares redeemable after 1 year....However such shares are not listed on any of the stock  exchanges.
As per the provision of section 80(1)(a) of Companies Act, 1956, "(a) no such shares shall be redeemed except out of profits of the company which would otherwise be available for dividend or out of the proceeds of a fresh issue of shares made for the purposes of the redemption."
My query is :
The Company wants to redeem  the Non-cumulative redeemable preference shares by following second method of redemption i.e. by way of fresh issue of shares for the purpose of redemption."
Kindly suggest what steps that I need to adhere as per the Companies Act, 1956 to complete the redemption of such shares..
With Regards
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