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Corporate & Other Laws

According to exception redemption time may be more than 20yrs but not exceeding 30yrs but subject to 10% of redemption commencing from 21st yr. Then further it is said at option of shareholder. So 10% redemption is mandatory or as per desire of shareholder?

Sugam SM

CA Final

★ 9K+

23-Apr-23 09:49

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Answers (8)

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Thread Starter

Sugam SM

CA Final

★ 9K+

23-Apr-23 09:49

It means 10% redemption is mandatory. But the mode of redemption can be made by conversation or cash on proportionate basis at the option choosen by shareholders.

Jitendra Kumar

CA Final

★ 41K+

23-Apr-23 10:18

Thread Starter

Sugam SM

I think it's as per the desire of the shareholder if they still would like to hold on shares after 21st year they can or they can choose to redeem

Abishek M

CA Final

★ 11K+

23-Apr-23 10:29

Abishek M

I think it's as per the desire of the shareholder if they still would like to hold on shares after 21st year they can or they can choose to redeem

Even I thought the same.

Thread Starter

Sugam SM

CA Final

★ 9K+

23-Apr-23 10:57

Jitendra Kumar

It means 10% redemption is mandatory. But the mode of redemption can be made by conversation or cash on proportionate basis at the option choosen by shareholders.

Convert to what? Eq shares?

Thread Starter

Sugam SM

CA Final

★ 9K+

23-Apr-23 10:58

But here the word used is 'subject to'. Which interpretation is company has to do in accordance with the provision written after 'subject to'. means it is compulsory to redeem.

Jitendra Kumar

CA Final

★ 41K+

23-Apr-23 11:22

Thread Starter

Sugam SM

Convert to what? Eq shares?

Yes, conversion in any other security.

Jitendra Kumar

CA Final

★ 41K+

23-Apr-23 11:23

Jitendra Kumar

But here the word used is 'subject to'. Which interpretation is company has to do in accordance with the provision written after 'subject to'. means it is compulsory to redeem.

Yeah thanks a lot.

Thread Starter

Sugam SM

CA Final

★ 9K+

23-Apr-23 12:48

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