REDEEMABLE PREFERENCE SHARES :

These are such preference shares in which are redeemed after specific period and money is returned to shareholders. According to Section 55 of the Companies Act, 2013, a Company cannot issue preference shares which are irredeemable. If Article of association permits, the Company can issue preference shares which are redeemable not later than 20 years. Companies engaged in infrastructure projects can issue shares redeemable exceeding 20 years subject to condition mentioned in rule 9 and 10 of the Companies (Share Capital and Debenture) Rules, 2014.