Is reclassification of authorised share capital (Equity to Preference) allowed ? Is SH-7 being approved by ROC, Karnataka for reclassification (cancellation of unis sued equity and increasing preference) ?
A Private Limited company having only equity share capital now wants to increase authorised capital and also issue of preference shares.
1. Is reclassification of equity shares into preference shares permitted? Can company only pass special resolution in Extra-ordinary general meeting for increase in authorised capital and give bifurcation of its equity and preference shares
I understand, in the past, some RoCs have rejected SH7 filed for reclassification of Authorized cap by way of cancelling unis sued portion of one class of shares and to increase another class of shares. Reason for this could be that SH7 didn’t have a specific option for reclassification of authorized cap.
However, in Jan 2021, SH7 got upgraded by MCA and the option “Cancellation of unis sued shares of one class and increase in shares of another class” has been newly added. Even Sec 61 (1)(e) allows for same.
Given this, wanted to check if RoCs are approving SH7 for reclassification of one class to another class of shares post Jan 2021? Particularly, wanted to check if RoC Mumbai such SH7. Pls let me know if someone has got such form SH7 approved by RoC Mumbai very recently say in last 2-3 months
I have filed form SH-7 for reclassification of share capital but I came to know from a CS friend that ROC is not approving any reclassification of share capital since 1 year..
Is it Correct? has any body filed form lately??
Can the company reclassify its preference share capital into the equity? If yes then kindly guide the procedure.
Compliance Calendar LLP is Recognised as Startup by DIPP Under Ministry of Commerce & Industry, Government of India