Issue of preference shares - Reclassification

[Nidhii Parekh]

Dear All

A Private Limited company having only equity share capital now wants to increase authorised capital and also issue of preference shares.

1. Is reclassification of equity shares into preference shares permitted? Can company only pass special resolution in Extra-ordinary general meeting for increase in authorised capital and give bifurcation of its equity and preference shares

Regards,

Nidhi Parekh

[CS Sarvajit S. Yadwad]

Hi,

Reclassification of unsubscribed part of equity into preference is allowed u/s 61. 

Special resolution is to be passed for increase in and reclassification of share capital along with MOA alteration.

Thanks & Regds,

 CS Sarvajit S. Yadwad

9765144257

[Nidhii Parekh]

All shares are subscribed.

Current authorised, subscribed and paid up capital is the same.

Regards,

Nidhi Parekh

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[CS Sarvajit S. Yadwad]

If authorized and paid-up capital is same, reclassification is not allowed.

It is allowed only for unsubscribed portion of the capital.

Thanks & Regds,

CS Sarvajit S. Yadwad

9765144257

[Nidhii Parekh]

Dear Sir

It's Private company not having preference share capital in it's existing authorised capital hence an increase in authorised equity and preference capital is required.

Does company need to pass Special resolution for the same or only Ordinary resolution will suffice?

Regards,

Nidhi Parekh

On Thu, Jul 1, 2021 at 6:32 PM CS Sarvajit S. Yadwad <ysar...@gmail.com> wrote:

[Ronak Gupta]

Special resolution 

Ronak Gupta
Company Secretary
Delhi
9910226715

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[CS Sarvajit S. Yadwad]

Hi,

For increasing the authorized share capital, Special Resolution is necessary.

Thanks & Regds,

CS Sarvajit S. Yadwad

9765144257

[Karishma]

Why special resolution for increase auth sh capital ? Why not ordinary ?

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[sagar mulchandani]

Yes, reclassification is now allowed.

You may pass OR in GM and do increase in authorised share capital & may also insert new pref. Share capital.

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[sagar mulchandani]

But for psc you may pass sr in gm

On Thu, Jul 1, 2021, 5:24 PM Nidhii Parekh <nidh...@gmail.com> wrote: