Preference Shares: Issue and Redemption
A promoter wants money in without giving away votes, or an investor wants a fixed coupon and a first claim on the pot, and someone has drafted a term sheet calling it a preference share without checking that it can lawfully be one.
- 6 pages
- 86
- Word and PDF
- 12 September 2026
The 4 formats inside
- 1Board resolution, issue of redeemable preference shares on a private placement basis and convening the EGMs.55, s.42, Rule 9On its own₹149
- 2Special resolution, issue of redeemable preference shares, with the full commercial termss.55, Rule 9(2)On its own₹149
- 3Board resolution, redemption of preference shares and transfer to Capital Redemption Reserves.55(2), s.64On its own₹149
- 4Notice of redemption to the preference shareholderss.55On its own₹149
Read the opening
The first part of “Board resolution, issue of redeemable preference shares on a private placement basis and convening the EGM”, as it downloads. Blanks are highlighted.
Certified true copy of the resolutions passed at the meeting of the Board of Directors of [ABC Private Limited] held on [Date of the board meeting] at [Board meeting time] at the registered office of the Company at [Company's registered office address]
ISSUE OF REDEEMABLE PREFERENCE SHARES ON A PRIVATE PLACEMENT BASIS
The Chairman informed the Board that the Company proposes to raise a sum of Rs [Total amount to be raised (Rs)] by the issue of [Number of preference shares] [rate]% [cumulative / non-cumulative] [non-participating / participating] [non-convertible / optionally convertible] redeemable preference shares of Rs [face value] each, at a price of Rs [issue price] per share, to [name(s) of the identified person(s)] on a private placement basis. He placed before the Board the valuation report dated [Date of the valuation report] issued by [Registered valuer's name], Registered Valuer (Registration No. [Valuer's registration number]), and confirmed that the articles of association authorise the issue of preference shares, that the authorised share capital of the Company includes preference share capital sufficient for the proposed issue, and that the Company has no subsisting default in the redemption of preference shares or in the payment of dividend due on any preference shares.