(b) For such class of companies as may be prescribed and whose annual accounts conform to the accounting standards prescribed for that class of companies under article 133, it is provided that any premium shall be paid on the repayment of the profits of the company before the cancellation of the shares. [§ 55 (2) letter d] The following procedure concerns the cancellation of preferred shares by a limited liability company on shares pursuant to Article 55 and Rule No. 9 of the Companies (Share Capital and Debentures) Regulations, 2014 – (1) No public limited company may issue non-redeemable preferred shares after the entry into force of this Law. 6. Allotment of preferred shares within 60 days of receipt of application fees. The allocation can be made by the board of directors or a committee or even an authorized person. Can a corporation pay the premium for the redemption of preferred shares from the previous year`s profit, or must it use the accumulated profit? Explanation: For the avoidance of doubt, it is hereby declared that the issuance of additional redeemable preferred shares or the cancellation of preferred shares under this section shall not be deemed to constitute an increase or, as the case may be, a decrease in the capital stock of the Corporation. Provided also that the premium, if any, payable on the redemption of preferred shares issued by such a company not later than the coming into force of this Act is paid out of the profits of the Société or into the premium account on the securities of the Société before the redemption of such shares. Mansi Kapoor, current corporate secretary and associate member of ICSI with 8 years of experience in secretarial, management consulting and legal structuring. (b) the nature of the shares, that is, cumulative or non-cumulative, participatory or non-participatory, convertible or non-convertible> At the time of the issue of the preferred shares, the Société shall not have a continuing default on the redemption of preferred shares issued before or after the coming into force of this Act or on the payment of a dividend due on the preferred shares. A company that builds and implements infrastructure projects may issue preferred shares for a period of more than 20 years but not more than 30 years, with at least 10% of these preferred shares being repaid on a pro rata basis per year starting at the 21st year or earlier at the option of the preferred shareholders. (a) priority over participating shares in the payment of dividends or returns of capital; (c) If the case does not fall within the scope of the preceding point, the premium, if any, payable on redemption shall be made available from the Company`s profits or the Company`s premium account prior to the redemption of such shares.

[§ 55 (2) letter d] 5. Accept the application Preferred shares through banking channels Preferred shares are the ideal tool for a company looking for an investment without diluting voting rights and control of the company. At the same time, it offers preferred shareholders a fixed income and a priority over dividends and repayment. (g) the total number of those preferred shares (not redeemed) and the number of approved holders with the value of those preferred shares and the percentage of holders who accepted; and Provided that a Company may issue preferred shares for infrastructure projects for a period of more than twenty years, subject to the annual repurchase of such percentage of shares at the option of such preferred shareholders: 8. The share certificate (Form SH-1) must be issued to prospective preferred shareholders within 2 months of the date of allocation. Associate Member of the Institute of Company Secretary of India (ICSI), Bachelor of Law and Master of Commerce, with more than 4 years of post-qualification experience cross-functional experience in law, secretarial, accounting and taxation in various industries. 2. Upon application under paragraph 1, the Tribunal may, after hearing the applicant and any other person it considers interested in the application, authorize the issue of additional redeemable preferred shares equal to the amount due, including the dividend, if it is satisfied having regard to all the circumstances of the case. With respect to non-redeemable preferred shares: If a corporation is unable to redeem preferred shares or, if applicable, pay a dividend on those shares in accordance with the terms of issue, those shares are referred to as “non-redeemable preferred shares”. The premium payable on the redemption of preferred shares can only be paid out of the company`s profits.

However, in addition to the P&L Account, a premium payable on the Preferred Shares may be provided from the Premium Securities Account in the following two cases: > The issuance of these shares was approved by a special resolution of the Company`s Annual General Meeting. Therefore, the corporation must obtain the prior approval of shareholders through a special resolution. The NCLT immediately orders the redemption of preferred shares held by persons who have not consented to the issuance of other redeemable preferred shares. Section 9. Issue and redemption of preferred shares.—1. A company holding the share capital may, if its statutes so permit, issue preference shares under the following conditions, namely:— (a) the amount of the issue and the number of preferred shares to be issued and the nominal value of each share; (c) the statutory provisions authorising the issue of preferred shares; The preferred shares will be repurchased for the following reasons: (e) Conversion of the preferred shares into shares. A share capital company may issue preferred shares under the following conditions, namely: (a) such shares may be repurchased only from the profits of the company that would otherwise be available for a new issue of shares for cancellation; > The explanatory memorandum to be attached to the convening of the general meeting in accordance with Article 102 shall contain, inter alia, all material facts relevant to the issue of those shares, including: (a) the issue of those shares has been approved by a special resolution at the general meeting of the company; (a) the amount of the issue and the number of preferred shares to be issued and the nominal value of each share; (b) the nature of such shares, i.e. cumulative or non-cumulative, participatory or non-participatory, convertible or non-convertible shares. 10 Issuance and redemption of preferred shares by the Company in connection with infrastructure projects.- (h) the terms of the repurchase, including the duration of the repurchase, the repurchase of premium shares and, if the preferred shares are convertible, the conditions of the conversion; Under Article 55(2) of the Law, a public limited company may issue preference shares which may be repurchased within a maximum period of 20 years from the date of issue.

1. Check if the articles contain a preferred share issuance clause. If not, change the AOA first. The Capital Repurchase Reserve Account may be used by the Company for the payment of unissued shares of the Company issued to members of the Company in the form of fully paid-up free shares. (a) The Corporation may repurchase its preferred shares only on the terms and conditions on which they were issued or amended after the appropriate consent of the preferred shareholders in accordance with section 48 of the Act. Preferred shares may be cancelled: (5) A company that intends to list its preferred shares on a recognized stock exchange shall issue such shares in that name in accordance with the rules of the Securities and Exchange Board of India. Only fully paid-up preferred shares may be redeemed. (4) If a company issues preferred shares, the register of members kept in accordance with section 88 shall contain the contact information of the preferred shareholder or shareholders. (b) such shares shall be repaid only if they are fully paid up; A corporation`s articles of association must authorize the corporation to issue preferred shares.