What is redeemable prefrence share?

Redeemable preference shares are a type of preference equity that a company can buy back from shareholders after a specified period or upon certain conditions. These shares often provide fixed dividends and have priority over ordinary shares in the event of liquidation. Unlike irredeemable preference shares, which remain outstanding indefinitely, redeemable preference shares have a predetermined redemption date or can be redeemed at the company's discretion. This feature allows companies more flexibility in managing their capital structure.