Section - 80 - 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