Maximum period for conversion of unsecured preference shares - Professionals - Legal - TIK Share
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Maximum period for conversion of unsecured preference shares


Mohit Jain

2015-03-09

Hi... Its a bit urgent.... I just wanted to knw as to wat is the maximum period to convert unsecured preference shares... Kindly let me know asap with a relaible source too... TIA... :) 

Rahul Rai

2015-03-09

As per section 55 of companies Act, 2013 A company limited by shares may, if so authorised by its articles issue preference shares which are liable to be redeemed within a period not exceeding twenty years from the date of their issue subject to such conditions as may be prescribed.

You can read the section.

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Mohit Jain

2015-03-09

I want to knw abt the maximum time limit for conversion of such shares... So is it tht redemption an conversion are the same??  

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Mohit Jain

2015-03-09

I think redemption an conversion 2  diff things... 

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Rahul Rai

2015-03-09

You need to convert within 20 years, that is what act says.

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Rahul Rai

2015-03-09

If you convert even that is redemption. Will update after connecting to some company secretaries.

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Mohit Jain

2015-03-09

Section 55 talks abt redemption an not abt conversion...

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