Issue & Redemption of Preference Shares Explained | Section 55 & PYQ | CS Executive Company Law

Issue & Redemption of Preference Shares | Company Law | CS Executive In this video, we cover the provisions relating to the Issue and Redemption of Preference Shares under Section 55 of the Companies Act, 2013, along with the relevant procedural requirements. 📌 In this video, we cover: • Meaning and definition of Preference Share Capital • Conditions for issue and redemption of preference shares • Maximum redemption period and the exception for infrastructure projects • Authorisation under AOA and Special Resolution requirements • Restrictions relating to subsisting defaults • Sources for redemption of preference shares • Capital Redemption Reserve (CRR) and treatment of premium on redemption • What happens when a company is unable to redeem preference shares? • Issue of further redeemable preference shares under Section 55(3) • Consent of 3/4th in value of preference shareholders and approval of the Tribunal • Disclosures required in the resolution and explanatory statement • Procedure and ROC filings, including MGT-14, PAS-3 and SH-7 • June 2026 PYQ: AD Ltd. is unable to redeem preference shares worth ₹50 lakh with outstanding dividend of ₹5 lakh • Calculation of the 3/4th consent requirement and the amount of further preference shares to be issued ⏱️ Timestamps 00:00 – Introduction to Preference Share Capital 01:32 – Conditions for Issue and Redemption 03:22 – Sources of Redemption and Capital Redemption Reserve 04:36 – Company Unable to Redeem Preference Shares 06:23 – Disclosures in Resolution 07:18 – Disclosures in Explanatory Statement 08:26 – Procedure and ROC Filings 11:00 – June 2026 PYQ with Calculation 13:19 – Quick Revision and Key Takeaways 🎯 For CS Executive Students This video focuses on the legal provisions, procedural requirements and exam-oriented application of Section 55. Pay special attention to the 3/4th consent calculation, Tribunal approval and the treatment of further redeemable preference shares, as discussed in the June 2026 question. 👍 LIKE | SHARE | SUBSCRIBE for more practical Company Law explanations and exam-focused videos. 📱 Instagram: @csriyajain #CSExecutive #CompanyLaw #PreferenceShares #RedemptionOfPreferenceShares #Section55 #CompaniesAct2013 #ICSI #CSStudents #PYQ #CompanySecretary