1. This is a petition by the Ganges Mfg. Co. Ltd. under section 80A of the Companies Act, 1956, seeking consent of the Company Law Board to the issue of further 1,86,056 redeemable cumulative preference shares of Rs. 10 each in lieu of the existing 60,000 cumulative preference shares and the arrears of dividend accumulated thereon till 14-6-1993, for Rs. 12,60,560, carrying dividend at the rate of 10.4 per cent per annum at par to the holders of the preference shares in proportion to the shares held by them subject to payment of fraction amount of Rs. 259 being the amount less than Rs. 10 each in some case in respect of the accumulated dividend in cash resulting from conversion of the arrears of dividend to the shareholders concerned and redeemable after the expiry of 5 years, but not later than 10 years from the date of issue.

2. It is stated that the petitioner-company was incorporated on 20-8-1916, under the Indian Companies Act, 1913, and is a public company limited by shares. The company is engaged in the business mainly of manufac-turing and dealing in jute, jute goods and jute products. The company issued 6,000 cumulative irredeemable preference shares of Rs. 100 each be