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A company can...

Question

A company cannot issue redeemable preference shares for a period exceeding:

A

6 Years

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B

7 Years

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C

8 Years

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D

20 Years

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Solution

The correct option is D 20 Years
According to Sec 55 of Companies Act, 2013 a company cannot issue any preference share, which is irredeemable or is redeemable after the expiry of period of twenty years from the date of its issue.

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