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      Question

      The preference shares should be redeemed with in a

      period of           
      A Not exceeding 10 years Correct Answer Incorrect Answer
      B Not exceeding 15 years Correct Answer Incorrect Answer
      C Not exceeding 20 years Correct Answer Incorrect Answer
      D Not exceeding 25 years Correct Answer Incorrect Answer
      E Not exceeding 30 years Correct Answer Incorrect Answer

      Solution

      Company cannot issue redeemable preference shares with a term exceeding 20 years for redemption

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