A Comprehensive Guide on Capital of the Company

  • Blog|Company Law|
  • 18 Min Read
  • By Taxmann
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  • Last Updated on 15 February, 2023

Capital of the company

Table of Contents

  1. ‘Own Funds’ and ‘Loan Funds’
  2. Preference Shares
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1. ‘Own Funds’ and ‘Loan Funds’

Company’s funds consist of (a) Own Funds and (b) Loan Funds.

1.1 Different kinds of shares

The ‘own funds’ of company are called ‘Share Capital’. This is the own capital of the company, which is supplied by its members (often called ‘shareholders’). The term ‘share’ itself indicates that the person ‘shares’ the assets, liabilities, profits and losses of the company, of which he is a ‘shareholder’.

A company can issue shares only of two types (a) Equity shares with voting rights or with differential rights of voting/dividend or otherwise in accordance with the rules prescribed and (b) Preference shares – section 43(1) of Companies Act, 2013.

These provisions are not applicable to private company. Thus a private company can issue any other type of shares and also with differential voting rights, if its Memorandum or Articles so provide – MCA Notification dated 5-6-2015 issued under section 462 of Companies Act, 2013.

Equity share capital – Equity share capital, with reference to any company limited by shares, means all share capital which is not preference share capital – Explanation (i) to section 43 of Companies Act, 2013 – corresponding to section 85(2) of the 1956 Act.

Voting rights in case of poll – Voting rights of a member, in case of a poll, are proportionate to his share of the paid up capital of the company in case of ordinary equity shares. – section 47(1)(b) of Companies Act, 2013 [section 87(1)(b) of the 1956 Act].

A private company can issue any other type of shares and also with differential voting rights, if its Memorandum or Articles so provide – MCA Notification dated 5-6-2015 issued under section 462 of Companies Act, 2013.

Money received as call in advance will not have voting rights – section 50(2) of Companies Act, 2013.

Full voting rights cannot be conferred on partly-paid shares by amendment to company’s Articles, as it will be repugnant to section 87(1)(b) of the 1956 Act. – S Ajit Singh v. DSS Enterprises (2001) 34 SCL 547 (CLB).

Shares are under control of Board – Subject to the provisions of the Act and the Articles, the shares in the capital of the company shall be under the control of the Directors who may issue, allot or otherwise dispose of the same or any of them to such persons, in such proportion and on such terms and conditions and either at a premium or at par and at such time as they may from time to time think fit – Regulation II.1 of Model Articles of Association Table F of Companies Act, 2013.

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1.2 Meaning of ‘Securities’

As per section 2(81) of Companies Act, 2013 [Corresponding to section 2(45AA) of the 1956 Act], ‘securities’ means securities as defined in section 2(h) of Securities Contracts (Regulation) Act, 1956.

In Sahara India Real Estate Corpn. Ltd. v. SEBI (2012) 115 SCL 478 = 25 taxmann.com 18 (SC) = (2013) 1 SCC 1, it has been held that ‘security’ covers hybrid also. Optionally Fully Convertible Debentures (OFCD) is a ‘security’. These are debentures in praesenti and shares in future.

Securities – ‘Securities’ include –

(i ) Shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate

(ia) Derivative

(ib) Units or any other instrument issued by any collective investment scheme to the investors in such schemes

(ic) Security Receipt issued by Securitisation Company, as defined in section 2(1)(zg) of ‘Securitisation & Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002’

(id) Units or other such instruments issued to investors under any mutual fund scheme –

Explanation – For the removal of doubts, it is hereby declared that ‘securities’ shall not include any unit linked insurance policy or scrips or any such instrument or scrip, by whatever name called, which provides a combined benefit of risk on life of persons and investment by such persons and issued by insurer referred in section 2(9) of Insurance Act (The explanation has been added w.e.f. 9-4-2010)

(ie) any certificate or instrument (by whatever name called), issued to an investor by any issuer being a special purpose distinct entity, which possesses any debt or receivable, including mortgage debt, assigned to such entity, and acknowledging beneficial interest of such investor in such debt or receivable, including mortgage debt, as the case may be

(ii) Government securities

(iia) Such other instruments as may be declared by the Central Government to be securities; and

(iii) Rights or interest in securities. [Section 2(h) of Securities Contracts (Regulation) Act, 1956].

What is ‘derivative’ – “Derivative” means the derivative as defined in section 2(ac) of the Securities Contracts (Regulation) Act, 1956 [section 2(33) of Companies Act, 2013]

1.3 Equity Shares

The ‘equity shareholders’ are the real owners of the company. They bear all the risks of business. ‘Equity shares’ can never be repaid, except

(a) In case of buy back of shares or

(b) when there is an approved scheme of reduction of capital or

(c) Liquidation [Of course, the individual shareholder can sell his shares any time to another person].

Equity shares can be issued with differential rights subject to various restrictions and conditions.

1.4 Authorised capital of a company

‘Authorised capital’ or ‘nominal capital’ means such capital as is authorised by the memorandum of a company to be the maximum amount of share capital of the company [section 2(8) of Companies Act, 2013].

This is the maximum amount of capital which a company is permitted to raise. This amount is specified in Memorandum of Association of the company.

It is also termed as ‘nominal capital’.

Increase in authorised capital – Authorised Capital is specified in Memorandum of Association. Hence, increase in authorised capital will require alteration of Memorandum. The provisions are discussed in an earlier chapter.

1.5 Issued, called up and subscribed capital

Company usually does not require whole amount of authorised capital. In such cases company can issue some part of the capital. This is the capital issued for subscription, called ‘Issued capital’.

‘Issued capital’ means such capital as the company issues from time to time for subscription [section 2(50) of Companies Act, 2013].

Called-up capital – “Called-up capital” means such part of the capital, which has been called for payment [section 2(15) of Companies Act, 2013].

Subscribed Capital – Subscribed capital means such part of the capital which is for the time being subscribed by the members of a company [section 2(86) of Companies Act, 2013].

1.6 Consolidation, division and cancellation of shares

Following changes in share capital are permissible – section 61(1) of Companies Act, 2013 and Regulation 36 of Model Articles Table F of Schedule I of Companies Act, 2013 [Corresponding to section 94 of the 1956 Act]—

Increase in authorized capital – Company can increase its authorised capital – section 61(1)(a) of Companies Act, 2013 – – This requires amendment to Memorandum by ordinary resolution.

Consolidation of shares – Company can consolidate and divide all or any of its share capital into shares of larger amount than its existing shares (e.g. 10 shares of Rs 100 may be converted into 100 shares of Rs 10 each. This is division. Change of 10 shares of Rs 10 each into one share of Rs 100/- each is consolidation of shares). If such consolidation or division results in changes in voting percentage, approval of NCLT in required – proviso to section 61(1)(b) of Companies Act, 2013.

The proviso relating to approval of NCLT is notified on 1-6-2016 as NCLT has been constituted.

Hence, approval of NCLT is required.

However, it is doubtful if change of voting percentage can be done and whether NCLT will approve such change.

Procedure for application before NCLT – Procedure for filing application before NCLT has been specified in rule 71 of NCLT Rules, 2016. Application should be in form NCLT.1 with fees of Rs 1,000.

Documents as specified in Annexure B and rule 71(2) of NCLT Rules, 2016 are required to be submitted. Advertisement has to be published and after hearing, NCLT may pass order as it deems fit.

Sub-division of shares – Company can sub-divide its shares, or any of them, into shares of smaller amount than fixed by memorandum, but the proportion of paid and unpaid amount on each share must remain the same (e.g. one share of ` 100 out of which Rs 60 are paid-up can be converted into 10 shares of Rs 10 each out of which ` 6 are paid-up. However, it cannot be converted into 6 shares of Rs 10 each fully paid up). – section 61(1)(d) of Companies Act, 2013.

Cancel shares – Company can cancel shares, which, at the date of passing of the resolution in that behalf, have not been taken or agreed to be taken by any person. This will diminish the amount of its share capital by the amount so cancelled [section 61(1)(e) of Companies Act, 2013]. However, this will not be considered as reduction of share capital [section 61(2) of Companies Act, 2013]. This will reduce authorized capital of company. Such cancellation is unlikely to serve any useful purpose.

Notice to Registrar for alteration of share capital or redemption of preference shares or increase in number of members of company not having share capitalNotice of such alteration shall be filed with Registrar in form No. SH.7 with fees in following cases –

(a) If share capital is altered in manner specified in section 61(1)

(b) Order of Government increasing authorized capital as section 62

(c) company redeems its preference shares or

(d) a company not having share capital increased number of its members – – Rule 15 of Companies (Share Capital and Debentures) Rules, 2014 as amended on 19-7-2016.

[Though no time limit is specified, it should be really within 30 days].

Call back old share certificates after sub-division or consolidation – The old share certificates should be called back and endorsement of consolidation/sub-division can be made. Alternatively, new share certificates will have to be issued to members after getting old shares back. However, if new share certificates are issued, fresh stamp duty may become payable. Old share certificates will have to be cancelled and destroyed after three years.

Reduction in share capital – Reduction in capital is not easy. Reduction may or may not involve amendment to Memorandum.

Notice to Registrar for alteration of capital – Notice shall be given to ROC for alteration of capital made under section 61(1) or order by Central Government under section 62 or by redemption of preference shares – section 64(1) of Companies Act, 2013.

Where any company fails to comply with the provisions of section 64(1), such company and every officer who is in default shall be liable to a penalty of five hundred rupees for each day during which such default continues, subject to a maximum of five lakh rupees in case of a company and one lakh rupees in case of an officer who is in defaultSection 64(2) of Companies Act, 2013 amended w.e.f. 21-12-2020.

During 2-11-2018 to 21-12-2020, the penalties were higher.

Till 2-11-2018, there was provision for imposition of fine, which could be imposed only by Court.

1.7 Paid up Capital

“Paid-up share capital” or “share capital paid-up” means such aggregate amount of money credited as paid-up as is equivalent to the amount received as paid-up in respect of shares issued and also includes any amount credited as paid-up in respect of shares of the company, but does not include any other amount received in respect of such shares, by whatever name called [section 2(64) of Companies Act, 2013 – Corresponding to section 2(32) of the 1956 Act]

The paid up capital is the amount actually paid by the subscribers.

Calls in Advance – Some times, even when company issues call for only part of share capital, some shareholders pay amount for further expected calls also. The company can retain the money as ‘Calls in Advance’ if so authorised by Articles, However, such amount will not carry any voting right – section 50(2) of Companies Act, 2013 [corresponding to section 92(2) of the 1956 Act].

The company can appropriate the amount towards share capital, when the call is actually issued.

1.8 Reserve Share Capital when unlimited company converts into limited company

An unlimited company having share capital may, by a resolution for registration as a limited company under the Companies Act, can either increase the nominal capital (which can be called up only in case of winding up) or provide that a specified portion of the uncalled share capital can be called only in case of winding up of the company – section 65 of Companies Act, 2013.

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2. Preference Shares

Preference share capital, with reference to any company limited by shares, means that part of issued capital which carries or would carry a preferential right (over equity shares) with respect to

(a) payment of dividend, either as a fixed amount or calculated at fixed rate, which may either be free of or subject to income tax and

(b) repayment, in the case of a winding up or repayment of capital paid up or deemed to have been paid up, whether or not, there is a preferential right to the payment of any fixed premium or premium on any fixed scale, specified in the memorandum or articles of the company – Explanation (ii) to section 43 of Companies Act, 2013.

Company can issue preference shares redeemable within period not exceeding 20 years, if authorised by Articles – section 55(2) of Companies Act, 2013.

Regulation 8 of Model Articles of Association Table F of Companies Act, 2013 empowers company to issue preference shares.

Preference Shares are those which, though unsecured, get priority over equity shares in winding up. Of course, this priority comes only when all secured and unsecured debts are repaid after winding up. Preference shares must be paid back before anything is paid to equity shareholders.

Some Advantages of preference shares – Preference shares are not very popular as the dividends are fixed and the investment is unsecured. Thus, it has disadvantages of equity and public deposit but advantage of none. However, it has advantages in certain situations.

Advantage of preference shares is that preference shares are redeemable, while equity shares can never be redeemed, except in case of buy back. In some cases, the financial institution or foreign investing company may decide to invest in preference shares for some strategic reasons – e.g. they may not want to commit their funds indefinitely, but at the same time they do not want to advance simple loan to the company.

Participation in winding up proceedings – In winding up, preference shares have preference over equity capital in respect of capital amount.

In addition, they may be given preferential right to payment of any fixed premium or premium on any fixed scale, if specified in Memorandum or Articles of the company – Explanation (ii)(b) to section 43 of Companies Act, 2013.

They can also be given right to participate, either fully or to limited extent, in any surplus after the entire capital is repaid. Such right can be in addition to

(a) preferential right to the repayment on winding up and

(b) preferential right to premium on winding up [Explanation (iii)(b) to section 43 of Companies Act, 2013].

Issue of preference shares by special resolution and terms should be approved by special resolution – If a company has subsisting default in the redemption of preference shares or payment of dividend due on preference shares, it cannot issue fresh preference shares. Preference shares can be issued after passing special resolution in general meeting. The explanatory statement shall contain prescribed details. Register of shareholders shall be maintained. If company intends to list the preference shares, the issue shall be as per SEBI Regulations – Rule 9 of Companies (Share Capital and Debentures) Rules, 2014.

Terms of redemption of preference shares should be approved by special resolution. Once the terms are approved by special resolution, preference shares can be issued by ordinary resolution [Regulation 8 of Model Articles of company limited by shares as contained in Table F of Schedule I of Companies Act, 2013]. [However, rules require special resolution]

Dividend on preference shares – The preference shareholders have preferential right with respect to payment of dividend, either as a fixed amount (say ` 10 per share per year), or dividend at a fixed rate e.g. 12% of nominal value of the preference share [Explanation (ii)(a) to section 43 of Companies Act, 2013].

In addition to preferential right in respect of dividend, the preference shareholder may be given right to participate, whether fully or to a limited extent, with capital not entitled to the preferential right. Such right will be useful if the company is under winding up and there are arrears of dividend.

Dividends to preference shareholders must be paid first before paying dividend to equity shareholders.

Declaration of dividend to preference shareholders not mandatory – Even if there are profits in a particular year, directors may decline to declare dividend to preference shareholders to conserve financial resources of the company, or for any other valid reason. However, dividend on ordinary shares cannot be declared unless dividend is declared on preference shares also.

Public issue of non convertible redeemable preference shares – Public issue of non-convertible redeemable preference shares can be only as per SEBI regulations.

Listed entity which has listed its non-convertible debt securities or non-convertible redeemable preference shares or both is required to follow conditions as specified in Chapter V (Regulations 49 to 62) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

These regulations contain provisions relating to intimations to stock exchange, disclosures, financial results, asset cover, credit rating, debenture trustees, record date and information on website.

2.1 Voting rights of preference shareholder

Preference shareholders have voting rights only in respect of following –

(a) resolutions which directly affect the rights attached to his preference shares

(b) any resolution for winding up of company or for repayment or reduction of its equity or preference share capital [section 47(2) of Companies Act, 2013].

In poll, the voting rights of preference shareholder will be in proportion to his paid-up preference share capital of the company – section 46(2) of the 2011 Act [Corresponding to section 87(2)(a) of the 1956 Act].

These provisions are not applicable to private company. Thus a private company can issue preferential shares, even with differential voting rights, if its Memorandum or Articles so provide – MCA Notification dated 5-6-2015 issued under section 462 of Companies Act, 2013.

The preference shareholders get voting rights at par to equity share holders in case of all resolutions at general meeting only when dividends on the preference shares are in arrears for two or more years – second proviso to section 47(2) of Companies Act, 2013. [Corresponding to section 87(2)(b) of the 1956 Act].

Voting rights of preference shares and equity shares will be in same proportion as paid-up capital of preference shares and equity shares – first proviso to section 47(2) of Companies Act, 2013

In CDS Financial Services v. BPL Communications (2004) 56 SCL 665 (Bom HC DB), it was held that preference shareholders will not get voting rights in cases where giving such voting rights will exceed the limit on Foreign Direct Investment (FDI) placed by RBI.

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2.2 Irredeemable preference shares cannot be issued

Irredeemable preference shares cannot be issued [section 55(1) of Companies Act, 2013] [Corresponding to section 80(5A) of the 1956 Act].

Preference shares must be redeemable (i.e. repayable) in maximum 20 years (except in case of specified infrastructure projects), if so authorised by Articles, subject to prescribed conditions [section 55(2) of Companies Act, 2013]

Company can issue preference shares for Infrastructural Project redeemable after 20 years – A company can issue preference shares for a period exceeding 20 years, for prescribed infrastructural projects, subject to redemption of percentage of shares on annual basis, at the option of the preferential shareholders – proviso to section 55(2) of Companies Act, 2013. The ‘infrastructural project’ has been defined in Explanation to section 55(2) of Companies Act, 2013.

Infrastructure Projects are defined in Schedule VI to the 2013 Act – Explanation to section 55(4) of Companies Act, 2013.

Restrictions as applicable to reduction of capital are not applicable to redemption of preference share capital – section 67(4) of Companies Act, 2013 [Corresponding to section 77(5) of the 1956 Act].

Company in infrastructural projects can issue preference shares for a period exceeding 20 years but not exceeding 30 year. However, minimum 10% of shares shall be redeemed per year from 21st year or earlier, on proportionate basis, at the option of preference shareholders – Rule 10 of Companies (Share Capital and Debentures) Rules, 2014.

2.3 How to redeem preference shares

Only fully paid preference shares can be redeemed. – second proviso (b) to section 55(2) of Companies Act, 2013 [Probable reason for this requirement is that really company should have forfeited the partly paid preference shares].

The preference shares may be redeemed on the terms on which they were issued or later varied with approval of preference shareholders. The approved terms of redemption can be any of the following – (a) at a fixed time or on the happening of a particular event (b) Any time at the company’s option or (c) Any time at the shareholder’s option – Rule 9 of Companies (Share Capital and Debentures) Rules, 2014.

Thus preference shares can be issued with put or call option.

Company in infrastructural projects can issue preference shares for a period exceeding 20 years but not exceeding 30 year. However, minimum 10% of shares shall be redeemed per year from 21st year or earlier, on proportionate basis, at the option of preference shareholders – Rule 10 of Companies (Share Capital and Debentures) Rules, 2014.

Partly paid up preference shares cannot be redeemed.

In Anarkali Sarabhai v. CIT 89 Comp Cas 28 (SC) = (1997) 11 SCL 121 (SC) = 224 ITR 422 = 1997 AIR SCW 731 = 90 Taxman 509 = (1997) Comp LJ 362, it was observed that redemption of shares amounts to purchase of own shares by the company. Redemption of preference shares is an exception to section 77 of the 1956 Act, which provides that company cannot purchase its own shares.

Redeem out of profits – Redeem out of profits of the company. Only that profit which is otherwise available for dividend can be used for this purpose [second proviso (a) to section 55(2) of Companies Act, 2013]

Restrictions on purchasing own securities by the company, as contained in section 67 of Companies Act, 2013, do not apply to such redemption – section 67(4) of Companies Act, 2013.

A sum equivalent to nominal amount of the preference shares to be redeemed is required to be transferred to a reserve called ‘Capital Redemption Reserve Account’. This reserve must be preserved. The reserve can be reduced only as if it is reduction in share capital [second proviso (c) to section 55(2) of Companies Act, 2013]

The capital redemption reserve account can be used to issue fully paid bonus shares to members – section 55(4) of Companies Act, 2013.

If there is any reserve which is available for dividend, it can be transferred to Capital Redemption Reserve Account and then can be used to redeem preference shares.

Redeem by issue of fresh shares – If company is not in position to redeem preference shares or pay dividend, such shares will be termed as ‘unredeemed preference shares’. The company can issue further redeemable preference shares equal to amount due including dividend unpaid on such unredeemed preference shares. Such issue is permissible only with consent of three-fourth in value of such preference shares and approved by NCLT [section 55(3) of Companies Act, 2013]

If some shareholders do not consent to such issue, NCLT can direct redemption of preference shares held by persons who do not consent to issue of further redeemable preference shares – proviso to section 55(3) of Companies Act, 2013.

Issue of such further redeemable shares will not be considered as increase or reduction in share capital – Explanation to section 55(3) of Companies Act, 2013.

Thus, no filing fees are payable for increase in capital in such cases.

Section 55(3) of Companies Act, 2013 has been notified and made effective on 1-6-2016, as NCLT has been constituted w.e.f. 1-6-2016.

Thus, approval of NCLT is required.

As per section 80 of the 1956 Act, redemption of preference shares by issue of fresh shares was permissible.

Procedure for petition before NCLT – Procedure for petition before NCLT has been specified in rule 69 of NCLT Rules, 2016. Application should be made in form NCLT.1 with documents as specified in Annexure B and rule 69(1) of NCLT Rules, 2016.

Fees of Rs 5,000 are payable with application.

NCLT can order redemption of preference shares to persons who had not consented to further issue of redeemable preference shares.

Payment of premium on redemption out of securities premium account – Companies which are not required to follow accounting standard can pay premium payable on redemption of redeemable preference shares, if any, out of profits or out of company’s ‘Securities Premium Account’ – section 52(2)(d) and second proviso (d)(ii) to section 55(2) of Companies Act, 2013.

However, companies required to follow accounting standards cannot use securities premium account for this purpose – section 52(3) of Companies Act, 2013 [The possible reason is accounting standards do not permit such use of securities premium account].

Companies required to follow accounting standards can pay premium, if any, shall be provided out of profits of the company, before shares are redeemed – second proviso (d)(i) of section 55(2) of Companies Act, 2013.

However, even such companies can use securities premium account to pay the premium, if such preference shares were issued prior to commencement of Companies Act, 2013.

[The ‘securities premium account’ is created out of premium when shares are issued at premium, as per provisions of section 52(1) of Companies Act, 2013]

Filing of notice with Registrar after redemption – After preference shares are redeemed, notice shall be filed with Registrar with altered memorandum within 30 days – section 64(1)(c) of Companies Act, 2013 [It is not clear what is meant by ‘altered memorandum’, since really redemption will not affect Memorandum of the company].

Notice of redemption of preference shares such alteration shall be filed with Registrar in form No. SH.7 with fees – Rule 15 of Companies (Share Capital and Debentures) Rules, 2014.

If default is made in filing the notice, penalty can be imposed on company and officer who is in default – section 64(2) of Companies Act, 2013 as amended vide the Companies (Amendment) Act, 2019 w.r.e.f. 2-11-2018.

2.4 Income tax in respect of additional amount paid on redemption of preference shares.

If preference shares are redeemed, surplus arising to a member would be capital gain. Redemption of share is a ‘transfer’ and hence, if more amount is paid, it is exigible to capital gains tax – Anarkali Sarabhai v. CIT 89 Comp Cas 28 (SC) = (1997) 11 SCL 121 (SC) = 224 ITR 422 = 1997 AIR SCW 731 = 90 Taxman 509 = (1997) Comp LJ 362. In this case, it was also observed that redemption of shares amounts to purchase of own shares by the company. Redemption of preference shares is an exception to section 77, which provides that company cannot purchase its own shares. (except in case of buy back). – followed in Kartikeya v. Sarabhai (1997) 94 Taxman 94 = 228 ITR 163 = (1997) 7 SCC 524 = AIR 1997 SC 3794 = 1997 AIR SCW 3646.

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2.5 Kinds of preference shares a company is allowed to issue

Following types of preference shares can be issued. Various permutations are also possible.

Cumulative and non-cumulative preference shares – Dividend on preference shares can be paid only if there are profits to the company. If there is no profit, the dividend payable to preference shares is carried forward. The dividend payable for the years when there was no profits can be accumulated and paid in the year when there are adequate profits. These are called ‘cumulative preference shares’. The preference shares can be issued on non-cumulative basis also, i.e. if there are no profits or inadequate profits in a year, the dividend payable lapses and it is not carried forward. However, preference shares are always presumed to be cumulative, unless clearly specified otherwise.

Convertible Preference Shares‘Convertible’ shares means they can be converted into equity shares after specified period (say between end of 3 years and 5 years) as may be decided by the company. The conversion of preference shares into equity shares will be deemed as redemption of preference shares out of fresh issue of shares.

2.6 Cumulative Convertible Preference Shares

Cumulative Convertible Preference (CCP) Shares can also be issued. They are called ‘convertible’ because they have to be converted into equity shares between end of 3 years and 5 years as may be decided by the company and approved by SEBI. The conversion of preference shares into equity shares will be deemed as redemption of preference shares out of fresh issue of shares. The right to get cumulative dividend on such preference shares continues even after they are converted into equity shares. The CCPs shall be listed in one or more stock exchanges. CCPs is a good concept, but unfortunately has not been appreciated either by investors or by companies. Hardly any company has issued CCPs.

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

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