Redemption of Preference Shares: Redemption of preference shares refers to the process by which a company repays or buys back its preference shares from shareholders. Preference shares are a type of share that gives their holders certain preferential rights, such as receiving dividends before common shareholders. The Companies Act and the company’s articles of association usually outline the conditions and procedures for redeeming preference shares. The redemption can be made at a predetermined date or in installments. The process often involves creating a reserve fund for the redemption, obtaining necessary approvals, and ensuring compliance with legal requirements.