Meaning of redeemable preference shares According to Indian Companies Act, 1956, a company cannot issue irredeemable preference shares allowed under the Act. Further, the redeemable preference shares issued by a company must be redeemed within the maximum period (i.e., 20 years at present). Those are shares which would be paid backwith the capital with in life time of the company, usually for fixed period oftime

Meaning of liquidation Liquidation or the winding up of a company means the termination of the legal existence of a company. It is defined in the Companies Act 1956 “The process whereby its life is ended and its properties is administered for the benefit of its Creditors and Members