Draft Board Resolution For Redemption of Preference Shares

Board-Resolution-Redemption-Preference-Shares


As per the provisions of Section 55(2) of Companies Act, 2013 Preference Shares can only be redeemed either out of the profits of the company which would otherwise be available for dividend or out of the proceeds of a fresh issue of shares made for the purposes of such redemption and where such shares are proposed to be redeemed out of the profits of the company, there shall, out of such profits, be transferred, a sum equal to the nominal amount of the shares to be redeemed, to a reserve, to be called the Capital Redemption Reserve Account. 

Draft Board Resolution For Redemption of Preference Shares

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 ______ Redeemable Convertible Preference Shares of Rs 10 each aggregating to Rs _______/- (Rupees ___________ Only) be redeemed out of the proceeds of the fresh issue of ________ Equity shares of Rs. 10/- each aggregating to Rs ______/- (Rupees ________ Only) to the existing shareholders of the company;
RESOLVED FURTHER THAT ________________ 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 required in this regard.
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