No company limited by shares shall issue any preference share which is redeemable or irredeemable after the expiry of a period of____________
A)One year from the date of issue
B)Two year from the date of issue
C)Five years from the date of issue
D)Ten years from the date of issue

Question

Quizplus · Accepted Answer

Preference shares must not be issued with a redemption period exceeding twenty years from the date of their issue, according to most jurisdictions' corporate laws. However, the specific choice provided here, "Ten years from the date of issue," is a common standard for the maximum redemption period for redeemable preference shares, aligning with many regulatory frameworks to ensure companies retain the ability to manage their capital structure effectively over time.

No Company Limited by Shares Shall Issue Any Preference Share