The lowdown on preference shares

Re: Private Cos by vijay kumar on Jan 13, 2009 09:56 PM dear vinit chordia,private companies are not eligible to issue and there is no need to issue any type of shares like equity and preference shares,because they run on their own capital.Hence the name is private company.....    Forward   |   Report abuse
Re: Re: Private Cos by Madhusudhan on Jun 12, 2009 09:22 PM WE THE COMPANY ARE ISSUING PREFERENTIAL SHARES . RANAULT SERVICES INDIA LTD PLEASE CALL 09337707000    Forward   |   Report abuse

RE:Query on preference shares ? by on Dec 13, 2007 03:44 PM under the Indian Compnaies Act, 1956 there are two kinds of shares; equity and preference. The key distinction that lies in a preference share over an equity share is the right of dividend before its given on equity shares and a preference during the winding up of the company. These are strictly adherent to public companies and not to pure private companies. The Indian companies act specifically bars ireedemable preference shares being alloted, meaning that now all preference shares issued shall be redeemeable at the call of the share holder or at a contingent period as specififed by the company. It is unlikely that you will get preference shares as the company generally issues these to qualified investors who make capital investments substantial enough to change the paid up capital of the company. It is ultimately the call of the company to do so, but generally companies issue equity shares when applied for    Forward   |   Report abuse

RE:DLF by on Dec 13, 2007 03:52 PM if it is a public company or a subsidiary of a public company the shares can be sold off at any point of time after the issue. The primary concept of the companies act is to let the individuals have freedom to sell/purchase shares traded at a stock exchange. You can sell the same at open market or convert them into equity shares at your behest I don't think it is a good idea to sell preference shares as they gove you benefits over equity shares, these are good for investment and even if a company plans to go into liquidation preferrential shareholders will be the first to get their money back, so they are definately better than equity shares.    Forward   |   Report abuse
RE:RE:DLF by on Dec 13, 2007 03:54 PM sorry the earier para was for equity shares, preference shares have a lock in period after which they will be bought back by the company or can be traded    Forward   |   Report abuse

RE:Query on preference shares by on Mar 12, 2008 11:55 PM there is no problem with it,only thing is that for this two saperate reedimption option to be taken in special resolution and allotment filing should be in two saperate lots    Forward   |   Report abuse