80A. Redemption of
irredeemable preference shares, etc.— (1) Notwithstanding
anything contained in the terms of issue of any preference
shares, every preference share issued before the commencement
of the Companies (Amendment) Act, 1988,—
(a) which is irredeemable, shall be redeemed by the company
within a period not exceeding five years from such commencement,
or
(b) which is not redeemable before the expiry of ten years
from the sate of issue thereon in accordance with the terms
of its issue and which had not been redeemed before such commencement,
shall be redeemed by the company on the date on which such
share is due for redemption or within a period not exceeding
ten years from such commencement, whichever is earlier:
Provided that where a company is not in a position to redeem
any such share within the period aforesaid and to pay the
dividend, if any, due thereon (such shares being hereinafter
referred to as unredeemed preference shares), it may, with
the consent of the Tribunal, on a petition made by it in this
behalf and notwithstanding anything contained in this Act,
issue further redeemable preference shares equal to the amounts
due (including the dividend thereon), in respect of the unredeemed
preference shares, and on the issue of such further redeemable
preference shares, the unredeemed shares shall be deemed to
have been redeemed.
(2) Nothing contained in section 106 or any scheme referred
to in sections 391 to 395, or in any scheme made under section
396, shall be deemed to confer power on any class of shareholders
by resolution or on any Court or the Tribunal of the Central
Government to vary or modify the provisions of this section.
(3) If any default is made in complying with the provisions
of this section,—
(a) the company making such default shall be punishable with
fine which may extend to ten thousand rupees for every day
during which such default continues; and
(b) every officer of the company who is in default shall
be punishable with imprisonment for a term which may extend
to three years and shall also be liable to fine.
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