REDEMPTION OF PREFERENCE SHARES

[Pallabi Mahato]

Procedure for redemption of preference shares?

Thank you,

Regards.

Pallabi Mahato

Contact : +91 8013418715

Mail : pallabi...@gmail.com

[Ramaswami Mohan]

pl see the article in the following web link:  may be useful,

http://taxguru.in/company-law/issue-redemption-preference-shares-company.html

regards,

Mohan

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CS. R.  Mohan
Mobile: 9908814677

[Pallabi Mahato]

Thank you Sir, the link is useful. One more query - do we need to pass a board resolution for redemption of preference shares?

Thank you,

Regards.

Pallabi Mahato

Contact : +91 8013418715

Mail : pallabi...@gmail.com

[Chirag Bagadia]

Yes

PFA the draft

Kindly modify according to your requirement 

Redemption of 4900 Redeemable Convertible Preference Shares of the Company:

 

RESOLVED THAT pursuant to the provision of Section 55 of the Companies Act, 2013 read with the Companies (Share Capital and Debentures) Rules, 2014 including any statutory modifications or any re-enactment thereof for the time being in force 4,900 Redeemable Convertible Preference Shares of Rs 10 each aggregating to Rs 49,000/- (Rupees Forty Nine Thousand Only) be redeemed out of the proceeds of the fresh issue of 5,000 Equity shares of Rs. 10/- each aggregating to Rs 50,000/- (Rupees Fifty Thousand Only) to the existing shareholders of the company;

RESOLVED FURTHER THAT any Directors of the Company and/or Mr. …………………, Company Secretary of the company be and is hereby severally authorized to do all such acts, deeds, matter and things as may be proper, necessary and expedient for giving effect to this resolution and also to file Form SH 7 or such other form as may be notified by the Ministry of Corporate Affairs;

RESOLVED FURTHER THAT necessary applications be made to Central Depository Services (India) Limited (CDSL) for redemption of said Preference Shares of the company and  Mr. ………………………..,  Company Secretary of the Company, be and is hereby authorised to deal with the concerned authority and to issue, sign and execute all the necessary papers, documents, agreements etc. in relation to redemption of  said Preference Shares including amendments, modifications or revisions thereof and to do all such acts, deeds and things as may be deemed necessary or ancillary thereto.

RESOLVED FURTHER THAT a Certified True Copy of the aforesaid resolutions certified by any one of the Directors or the Company Secretary of the Company be furnished to such authorities and they be requested to act upon the same.”

Regards

Chirag Bagadia

Company Secretary and Legal

Radio City 91.1 FM

Thanks and Regards

Chirag Bagadia

CS & Legal

Radio City 91.1FM

[mallik vishwanatham]

If the redemption is as per the terms of issue of preference shares which has already been approved by the Board at the time of issue, then no fresh Board Resolution is required to be passed.

Thanks & Regards

Mallik

[Chirag Bagadia]

It is better to pass board resolution since in Form SH 7 you need to mentioned the date of the board meeting on which company has redeemed the redeemable preference shares i.e. the date of event and if you dont pass the resolution then you need put the board meeting date at the time of issue and that will incur heavy penalty

Its better to pass the board resolution and file Form SH 7 within 30 days of such resolution

Other views are solicited  

Thanks and Regards

Chirag Bagadia

CS & Legal

Radio City 91.1FM