Multiple choice

As per the Companies Act, preference shares are redeemable within

  1. 24 years

  2. 22 years

  3. 30 years

  4. 20 years
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

According to Section 55, no company, limited by shares, shall issue irredeemable preference shares or preference shares redeemable after the expiry of 20 years from the date of issue. However, a Company may issue preference shares redeemable after 20 years for such infrastructure projects as may be specified, under the Companies Act, 2013.

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