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      Question

      A company can issue redeemable preference shares for up

      to what maximum duration?
      A 7 years Correct Answer Incorrect Answer
      B 10 years Correct Answer Incorrect Answer
      C 15 years Correct Answer Incorrect Answer
      D 20 years Correct Answer Incorrect Answer
      E Cannot issue preference shares Correct Answer Incorrect Answer

      Solution

      As per section 55 of the Companies Act, 2013, a company can issue preference shares redeemable within a period up to 20 years (if authorized by articles). A company is not allowed to issue irredeemable preference shares.

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