Redemption of preference shares: mandate to redeem or substitute older preference shares with tribunal-approved redeemable shares. Section 80A requires redemption of preference shares issued before the 1988 amendment: irredeemable shares must be redeemed within a prescribed period from commencement; shares redeemable at a later date must be redeemed on their due date or within a prescribed period from commencement, whichever is earlier. If a company cannot redeem or pay dividends, it may petition the Tribunal to issue further redeemable preference shares equal to amounts due, whereupon the unredeemed shares are deemed redeemed. The section cannot be varied by shareholder resolution, statutory scheme, Court, Tribunal or Central Government; noncompliance attracts company fines and officer penalties.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Redemption of preference shares: mandate to redeem or substitute older preference shares with tribunal-approved redeemable shares.
Section 80A requires redemption of preference shares issued before the 1988 amendment: irredeemable shares must be redeemed within a prescribed period from commencement; shares redeemable at a later date must be redeemed on their due date or within a prescribed period from commencement, whichever is earlier. If a company cannot redeem or pay dividends, it may petition the Tribunal to issue further redeemable preference shares equal to amounts due, whereupon the unredeemed shares are deemed redeemed. The section cannot be varied by shareholder resolution, statutory scheme, Court, Tribunal or Central Government; noncompliance attracts company fines and officer penalties.
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