Preference shares- Security, Corporate Laws / SEBI / LLP

[VIRENDER PANDEY]

XYZ Ltd issued  prefrence share of Rs 9,99,00,000/- . Out of amount recieved the company made FD of Rs 9,50,00,000 in the name of the company . Now the company want to give this FD as a security to preference shareholder by entering in to agrement with them. Is this valid as per company law and if valid what are the guidelines & procedure which need to be follow?

Posts / Replies

[CA. Surender Gupta]

Kindly share you views in this regard.