Extension of the Date of Redemption of Preference Shares - SR

Resolution For The Extension Of The Date Of Redemption Of Preference Shares (For Variation Of Rights)

“RESOLVED THAT consent of shareholders be and is hereby accorded to the variation of the rights attached to the Equity Shares of the Company deemed to have been caused by reason of extension of the date of redemption and increase in rate of interest of __% Redeemable Cumulative Preference Shares (First Series) of Rs.___ each fully paid-up, agreed to by the holders of the said Preference Shares.

Explanatory Statement;

First Series of _____ — __% Redeemable Cumulative Preference Shares of Rs. ___ each fully paid-up issued by the Company in ____ fell due for redemption on ______, 20__ The date was extended and accordingly the shares were to be redeemed in five equal installments of ` ___ lakhs each annually commencing from .......20.... In the interest of the Company it has been considered expedient not to redeem these Preference Shares immediately.

In any case, in the absence of the required reserves it would not be possible to redeem the said Preference Shares in terms of Section 55 of the Companies Act, 2013. The Company’s request to the Preference Shareholders to give their consent to this effect is under their consideration. A meeting of the holders of these 11% Redeemable Cumulative Preference Shares (First Series of Rs.___ each fully paid-up) has been convened to consider the necessary resolution for extension of date of redemption and increase in the rate of interest.

As holders of the Equity Shares, your rights are deemed to be affected from the date of extension of redemption in respect of First Series of the Preference Shares as aforesaid.

It is, therefore, proposed that your consent be obtained to such variation of your rights as per the resolution.

The necessary resolution for extending the date of redemption of and increasing the rate of dividend on the __% Redeemable Cumulative Preference Shares of the company is included separately in the notice.

Directors of the company are not interested in the said resolution except to the extent of their shareholdings.