In no circumstances a company can issue redeemable preference shares with a redemption period beyond 20 years.

According to Section 55(2) of the Companies Act, 2013 read with Rule 9 of the Companies (Share Capital and Debentures) Rules, 2014, a company limited by shares may, if so authorised by its articles, issue preference shares which are liable to be redeemed within a period of not exceeding 20 years from the date of their issue. It is further provided that a company may issue redeemable preference shares with a redemption period beyond 20 years. According to Section 55(2) of the Companies Act, 2013 read with Rule 10 of the Companies (Share Capital and Debentures) Rules, 2014, a company engaged in the setting up and dealing with of infrastructural projects may issue preference shares for a period exceeding 20 years but not exceeding 30 years, subject to the redemption of a minimum 10% of such preference shares per year from the 21st year onwards or earlier, on proportionate basis, at the option of the preference shareholders.