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Yes, a private company limited by shares can issue debentures and preference shares to raise capital.
A company may issue debentures with option to convert such debentures into shares, either wholly or partly at the time of redemption. Section 71 of the Companies Act, 2013 would apply.
Preference shares on the other hand can be i...
Wazzeer Professional Network
ProfessionalCan a private company (limited by shares) and an FDI entity issue debentures and preference shares to raise capital? If yes, then what is the procedure to be followed for the same? If it is not permitted, then why not? thank you.
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Wazzeer Professional Network
ProfessionalYes, a private company limited by shares can issue debentures and preference shares to raise capital.
A company may issue debentures with option to convert such debentures into shares, either wholly or partly at the time of redemption. Section 71 of the Companies Act, 2013 would apply.
Preference shares on the other hand can be issued subject to the conditions stipulated in Section 55 of the Companies Act, 2013. The procedure of issuance and increase of capital would however be governed by Section 62 of the Companies Act, 2013.
"Get your Wazzeer" to have an experienced Lawyer to execute Funding Compliance for your venture.
about 4 years ago
View answer
Can a private company (limited by shares) and an FDI entity issue debentures and preference shares to raise capital? If yes, then what is the procedure to be followed for the same? If it is not permitted, then why not? thank you.
-
Wazzeer Professional Network
ProfessionalYes, a private company limited by shares can issue debentures and preference shares to raise capital.
A company may issue debentures with option to convert such debentures into shares, either wholly or partly at the time of redemption. Section 71 of the Companies Act, 2013 would apply.
Preference shares on the other hand can be issued subject to the conditions stipulated in Section 55 of the Companies Act, 2013. The procedure of issuance and increase of capital would however be governed by Section 62 of the Companies Act, 2013.
"Get your Wazzeer" to have an experienced Lawyer to execute Funding Compliance for your venture.
about 4 years ago
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