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A company can...

Question

A company can not issue redeemable preference shares for a period exceeding ________.

A

6 years

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B

7 years

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C

10 years

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D

20 years

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Solution

The correct option is D 20 years
A company can issue preference share with a condition that the amount of preference share will be repaid by the company after the fixed period or before at the discretion of the company. This period of redemption can not be more than 20 years.

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