Why companies act 2013 does not permit a company to issue irredeemable preference shares ?
This query is : Resolved
18 July 2022
I want to know why a companies act 2013 does not permit companies to issue irredeemable preference shares I want to know the logic behind it.
18 July 2022
Preference shares are issued to investers for an assured dividend initially during the period of stabilization of business. We have to take of care of the share holders invested without any assurance of dividend at a later stage when company is doing well. So this the reason for it.
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