Annual accounts - Form and contents of ‑ Whether general reserve can be used for redeeming preference shares - Companies Law - Letter: No. 8/80/67‑PR,

Letter: No. 8/80/67 ‑ PR, dated 13 ‑ 11 ‑ 1957. Annual accounts - Form and contents of ‑ Whether general reserve can be used for redeeming preference shares The Notes at the end of Part I of Schedule VI should be followed by every company both in letter and spirit. It would not accordingly be desirable to use the general reserve of a company for the purpose of redeeming the preference shares as long as there is a debit balance in the profit and loss account.