📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

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

      its articles, issue preference shares which are liable to be redeemed within a period____________________
      A Exceeding thirty years from the date of their issue Correct Answer Incorrect Answer
      B Exceeding twenty years from the date of their issue Correct Answer Incorrect Answer
      C Not exceeding twenty years from the date of their issue Correct Answer Incorrect Answer
      D Not exceeding thirty years from the date of their issue Correct Answer Incorrect Answer
      E As may be prescribed by the Central Government Correct Answer Incorrect Answer

      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

      Practice Next
      More Section Tests Legal Questions
      ask-question