Question

No company limited by shares, issue any preference shares which is redeemable after the expiry of a period of ____ from the date issue.

• A. ten years
• B. five years
• C. twenty years
• D. twenty five years

Answer 1

The correct option is C twenty years

As per section 55 of the Companies Act, 2013, no company limited by shares shall issue any preference shares which are irredeemable. But, if so authorised by its articles, such company issue preference shares which are liable to be redeemed within a period not exceeding twenty years from the date of their issue.