IndigoLearn

Forums

All Topics Accountancy Auditing Corporate & Other Laws Direct Taxation Indirect Taxation Financial Management Economics Costing Strategic Management Maths & Stats Exams Others AFM Financial Reporting CFA Level I

Section 48

Corporate & Other Laws

Madam/sir According to the section 48 If the AOA OR MOA already specifies the change of the rules regarding the preference shares then still there must be a special resolution? And one more if there is no information in MOA AND AOA of the change do the preference share holders get a exit option?

aman kawad

CA Inter

★ 7K+

01-May-20 15:35

403

Answers (1)

Yes, even after provision in MOA or AOA a special resolution is required. If the preference share holders do not want to go through special resolution at a separate meeting of the holders then consent in writing of the holders of not less than 3/4th of the issued shares of that class is required. If there is no provision in MOA or AOA, preference shareholders can change the rules only if such change is not prohibited or against the terms of issue of such preference shares but special resolution or written consent is required.