Companies Act, 1956
Section - 80 - Power to issue redeemable preference shares
[Issue and redemption of preference shares]Power to issue redeemable preference shares.80. (1) Subject to the provisions of this section, a company limited by shares may, if so authorised by its articles, issue preference shares which are, or at the option of the company are to be liable, to be redeemed :Provided that— (a) no such shares shall be redeemed except out of profits of the company which would otherwise be available for dividend or out of the proceeds of a fresh issue of shares made for the purposes of the redemption; (b) no such shares shall be redeemed unless they are fully paid; (c) the premium, if any, payable on redemption shall have been provided for out of the profits of the company or out of the company’s [security] premium account, before the shares are redee .... To read the full section download the app from Google Play store
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