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of <h1>Clause 55: Companies Limited by Shares Cannot Issue Irredeemable Preference Shares; Redemption Terms Specified for Infrastructure Projects.</h1> Clause 55 of the Companies Bill, 2011, prohibits companies limited by shares from issuing irredeemable preference shares. Companies may issue redeemable preference shares with a redemption period not exceeding 20 years, except for infrastructure projects, where the period can exceed 20 years with annual redemption options. Redemption must be funded from profits or new share issues, and shares must be fully paid. A Capital Redemption Reserve Account must be established for redemptions from profits. If unable to redeem shares, companies may issue further redeemable shares with shareholder and tribunal approval. The capital redemption reserve can be used for issuing bonus shares.
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