Issue of preference shares requires special resolution and detailed disclosure; redemption permitted only on issued or approved terms. Rule 9 permits issuance of preference shares if authorised by the articles and a special resolution, provided the company has no subsisting default in redemption or dividend payment. The authorising resolution must specify priority to equity, participation in surplus, dividend character, conversion and voting rights, and redemption terms. The explanatory statement must disclose size, nature, objectives, price, pricing basis, dividend and redemption terms including conversion and modes of redemption, current shareholding and expected dilution. Redemption is limited to the issued terms or varied terms approved by preference shareholders.
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.
Issue of preference shares requires special resolution and detailed disclosure; redemption permitted only on issued or approved terms.
Rule 9 permits issuance of preference shares if authorised by the articles and a special resolution, provided the company has no subsisting default in redemption or dividend payment. The authorising resolution must specify priority to equity, participation in surplus, dividend character, conversion and voting rights, and redemption terms. The explanatory statement must disclose size, nature, objectives, price, pricing basis, dividend and redemption terms including conversion and modes of redemption, current shareholding and expected dilution. Redemption is limited to the issued terms or varied terms approved by preference shareholders.
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