: (1) The company may issue preference shares as provided in this Act, Articles of Association or Regulations.
(2) Shares issued under sub-section (1) cannot be converted into ordinary shares except as provided in the regulations.
(3) In addition to other things, the following things must be disclosed when issuing preference shares in accordance with sub-section (1):-
(a) Whether or not to receive dividend before ordinary shares,
(b) What percentage of dividend the preference shareholders will receive,
(c) whether the dividend is added every year (cumulative) or whether the profit is distributed only in the year of profit (non-cumulative),
(d) In case of liquidation of the company, whether or not to give preference to refund of shares,
(e) Whether or not there will be voting rights and if there will be voting rights, whether the priority will be only in the matter of shares or also in other matters,
(f) According to Clause (e), if there is voting rights in other matters as well, the matter in which proportion voting rights will be held,
(g) Matters which may or may not be converted into ordinary shares,
(h) whether the preference share amount is redeemable or non-redeemable after a specified period,
(i) When the preference shares are redeemed, whether they will be redeemed with or without premium.
(4) If any preference share is issued under the condition of return, the share cannot be returned until the price of such share is paid in full.
(5) The amount of preference shares cannot be returned from any amount other than the amount of profit that can be distributed as dividends or the amount received from new shares issued by the company for the purpose of returning shares.
(6) If any preference shares issued to be returned are to be returned along with the premium, for the purpose of returning such share amount, a separate fund of appropriate amount shall be arranged from the company's profit or the company's share premium account. This Act except in cases where the amount of Preference Shares redeemable from the amount received has been redeemedAccording to the return of preference shares, the amount that can be obtained from the profit of the company to distribute dividends, an amount equal to the fixed price of the returned shares shall be established and deposited in the capital return reserve fund.
(8) The capital recovery reserve fund established in accordance with sub-section (7) shall be maintained as paid-up capital.
(9) Any preference share returned in accordance with this section shall be deemed to have been canceled automatically after the completion of the return process.
(10) When a company redeems preference shares, it shall follow the conditions and procedures prescribed in the company's regulations subject to this clause, and thus the amount of preference shares shall not be deemed to have reduced the authorized share capital of the company.
(11) If the company redeems or proposes to redeem any preference shares, it may issue new shares equal to the strike price of the shares so redeemed or to be redeemed.
(12) The company shall notify the office within one month of returning any preference share and if such notice is received, the office shall enter such notice in the company's register book.
(13) Notwithstanding anything written elsewhere in this section, the company may issue new shares as fully paid bonus shares to its shareholders from the capital return reserve fund established under sub-section (7).