I cam to know about a preference share through a new upcoming company in India with different concept. They had asked me to maket their Preference share and said to me that they themselves cannot market their share. In case if I accept their proposal what are are the mandatory documents the company to have to start a prewfernece share and what are things I should know about the company for me to market their Preferecne share? do I need to conatct my Auditor before taking up the deal? Will there be any risk for my company in marketing the Prference share of other company? Can you please give answers and adivce on marketing a preference share of any company? Thanking you in advance,
RE:Who can start Preference Share?
by sam Dhiwakar on Sep 16, 2005 06:21 PM Permalink
its never a problem in marketing preference share but actually you will be exposed to the vagaries of its performance since it will not be linked with the stock exchange and you are answerable to the client.it would be wise to market it after you go through the balancesheet of the issuing company and analyse the performance and asset backing of the companies capital structure and its credit worthiness.
RE:Who can start Preference Share?
by Sam Dhiwakar on Sep 16, 2005 06:29 PM Permalink
since you have mentioned that they cannot market their own shares there is some sort of doubt about the companies financial health and solvency so you better go through their debt and equity proportion before taking up the project and if their debt is more compared to the fixed assets of the company pls decline the offer because the issued share capital part in the balance sheet is sometimes deceiving
