Preference Shares are defined under Section 43 of the Companies Act, 2013.
Section 43 of the Companies Act, 2013 deals with the kinds of share capital a company can issue. It specifically defines preference shares as shares which carry preferential rights with respect to:
• Payment of dividend at a fixed rate
• Repayment of capital in case of winding up of the company
The section also specifies the conditions and limitations for issuing preference shares, including the requirement that preference shares must be redeemable within a maximum period of 20 years from the date of issue.