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preference shares

Others 2119 views 8 replies

plz tell the maximum time limit fr redemption of preference shares?as per co. act?

Replies (8)

I also want to know ????????????????

artical regarding irredeemable preference shares

https://www.vakilno1.com/bareacts/companiesact/s80a.htm

 

Presentation on preferences shares

https://www.icai.org/resource_file/16779Preference_Shares.pdf

;)

someone tell plz......:(

i think its 20 yrs

"After the commencement of Companies (Amendment) Act 1996, a company cannot issue any preference share which is irredeemable or is redeemable after the expiry of a period of twenty year from the date of its issue"

Its clear from above statement, that maximum period for redemption of preference share is twenty year.

If the company has issued redeemable preferance shares then the company should redeeme that as per terms and conditions of issue and if the company has issued irredeemable preferance shares then the company should redeem it with in a period of 20 years from the date of issue

Agree with Prashant and Ramesh

20 years.....


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