A company limited by shares may, if so, authorised by

Solution

Section 55.Issue and redemption of preference shares- (2) A company limited by shares may, if so authorised by its articles , issue preference shares which are liable to be redeemed within a period not exceeding twenty years from the date of their issue subject to such conditions as may be prescribed: Provided that a company may issue preference shares for a period exceeding twenty years for infrastructure projects, subject to the redemption of such percentage of shares as may be prescribed: on an annual basis at the option of such preferential shareholders- Companies (Share Capital and Debentures) Rules, 2014: A company engaged in the setting up and dealing with infrastructural projects may issue preference shares for a period exceeding twenty years but not exceeding thirty years, subject to the redemption of a minimum ten percent of such preference shares per year from the twenty first year onwards or earlier, on proportionate basis, at the option of the preference shareholders.