Shares can be converted from one class to another by way of special resolution or by lodging a notice with ACRA. However, non-redeemable preference shares cannot be converted into redeemable preference shares.
The conversion of shares may take place following a sale or company reorganisation or simply for administrative, historical or family reasons where shareholders choose or need to hold a different class of shares. This could be where ordinary shares are converted into one or more classes of alphabet shares (A, B, C, etc.) or in more complex arrangements, converted into certain types of preference or redeemable shares.
If your company wants to convert its shares, you need to file a “Conversion of Shares” transaction via BizFile+.