Question

A company cannot issue redeemable preference shares for a period exceeding___
a) 6 years
b) 7 years
c) 8 years
d) 20 years​

Answer 1

Answer:

answer given above with full clarification why 20 years is correct

Answer 2

A company cannot issue redeemable preference shares for a period exceeding d). 20 years.

• According to Sec 55 of the Companies Act, 2013 a company cannot issue any kind of preference share which is either irredeemable or redeemable after the expiry of the period of twenty years from the date of its issue.
• The preference shares may be redeemed at a fixed time or on the happening or occurrence of any particular event.
• It can also be redeemed at the time of the company's option or any time depending upon the choice of the shareholder of that particular share.

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