Redemption of Preference Shares
When a redeemable preference share issued to a founder, a family investor or a bank reaches its term, and the company has to find the money from a source the Act permits.
- 5 pages
- 57
- Word and PDF
- 12 September 2026
The 3 formats inside
- 1Board resolution, redemption of preference sharess.55(2) · s.55(3) · SH-7On its own₹149
- 2Notice of redemption to preference shareholderss.55 · terms of issueOn its own₹149
- 3Board resolution, creation of the Capital Redemption Reserves.55(3)On its own₹149
Read the opening
The first part of “Board resolution, redemption of preference shares”, as it downloads. Blanks are highlighted.
Extract from the minutes of the meeting of the Board of Directors of [Company Name] Private Limited held on [Date of board meeting approving redemption]
REDEMPTION OF REDEEMABLE PREFERENCE SHARES
The Chairman informed the Board that [Number of preference shares to be redeemed] [Dividend rate on preference shares (% a year)]% Redeemable [Cumulative / Non-Cumulative] Preference Shares of the face value of Rs [Face value of each preference share (Rs)] each, allotted on [Date the preference shares were allotted], fall due for redemption on [Date of redemption] in terms of the conditions of issue approved by the Members by a special resolution passed on [Date of special resolution approving terms of issue], at a redemption price of Rs [Redemption price per share (Rs)] per share, comprising the face value of Rs [Face value of each preference share (Rs)] and a premium of Rs [Premium on redemption per share (Rs)] per share, aggregating Rs [Total redemption amount (Rs)].