Can a company issue preference share for more than 20 years?
Question
Can a company issue preference share for more than 20 years?
Expert Answer
Answered 18 Apr 2026
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As per Companies act 2013, A Company cannot issue preference share exceeding 20 years.
Further, a company engaged in infrastructure projects can issue preference share for a period exceeding 20 years but not exceeding 30 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