Buy Back Of Preference Shares

2717 views 2 replies
Can Preference Shares be bought back before maturity ? can it be termed as buy back of Preference Shares ?
Replies (2)
Buy Back Concept will not apply to preference shares. If you want redeem preference shares before maturity period, that will be known as redemption of preference shares only.

Sec 55(2) says
The company redeems preference shares as per terms of issue or as varied u/s 48, it may be redeemed at a fixed time or on happening of an particular event, at any time at the option of the company or Shareholders.

So out of above content it is clear that redemption of preference shares can be done at the option of company. Hence it can redeem preference shares before it's maturity.
but only if articles and contract terms permit otherwise also possible but have to take consent ...

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
29 June 2026
Accountant (Finance & Compliance)

TRIEYEZ

Kolkata

CA

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
24 June 2026
Chartered Accountant - GST & Direct Tax

APL

Mumbai

CA

View Details
Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details