TOPIC 55: QUICK REFERENCE TO “Query w.r.t. Issue of Further Redeemable Shares for Redemption of Earlier Preference Shares”
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Quick Reference to " Query w.r.t. Issue of Further Redeemable Shares for Redemption of Earlier Preference Shares " :-
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( Coversation Illustrative Example ):-
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The Conversation/ Meeting is between Director and PCS :-
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Director (Mr A):-
Hello ! Good Morning Sir,
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PCS (Mr B):-
Ya..Good Morning...Would u like to take tea or Coffee ?? Y r u so tensed ?? What happened?? Tell me.
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Director ( Mr. A) :-
Sir, Actually tell me the exact solution for my problem w.r.t. Our Company.
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PCS (Mr. B ):-
Yes..Tell me first.
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Director (Mr. A ):-
Basically, Our Company is not in a position to redeem Preference Shares. We are paying dividend on regular basis but not able to redeemed . So Can we Issue further Redeemable Preference Shares to redeem earlier Preference Shares ?
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PCS (Mr B ):-
Yes Sir, U can Issue further Redeemable Preference Shares to redeem earlier Preference Shares through NCLT route.
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Director ( Mr A ):-
How ?? What r the requirements?? What about Fees ??
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PCS ( Mr. B ):-
Firstly, U have to take consent of holders of 3/4 this in Value of Such Preference Shares & The Approval of NCLT.
Form NCLT-1 is required to filed with the attachments of MOA, AOA, Terms of Issue of existing Preference Shares details, Board Resolution & General Resolution Copy for further Redeemable Preference Shares, latest director report, latest Auditor, Affidavit (Form NCLT-6), Demand Draft of ₹ 5,000 as a Application fees, Memorandum of Appearance ( Form NCLT-12 ), Notice Of Admission ( Form NCLT-2 ).
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Director ( Mr A ):-
Ok. But, what will be the value upto which we can issue further shares?
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PCS ( Mr. B ):-
The Value shall be the equal to the amount due in respect of existing Preference Shares.
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Director (Mr. A):-
What about your Professional Fees in this regard ?
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PCS ( Mr. B ):-
Sir, That i will provide u through e-mail with other details also.
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Director (Mr A):-
Ok. Thanks a lot Sir. Have a nice day..Bye.
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PCS ( Mr B ) :-
Ya..Tc..Bye.
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Regards
ACA SOURAV BAGARIA