MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Business Studies

Preference Shares

A company can...

Question

A company can not issue following kinds of shares _____________.

A

Redeemable equity shares

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Irredeemable preference shares

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

C

Equity shares with differential voting rights

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

Redeemable preference shares

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B Irredeemable preference shares
An Irredeemable preference share is a kind of preference share which have no maturity period to be redeemed. Means the investors of such shares will not get their capital back. so as the companies Act, 2013 does not allow any company to issue irredeemable preference shares.

Suggest Corrections

thumbs-up

0

Similar questions

Q. A company can not issue redeemable preference shares for a period exceeding ________.

Q. A company cannot issue redeemable preference shares for a period exceeding:

Q. A company cannot issue redeemable preference shares for a period exceeding _____________.

Q. Consider the following statements:
(1) Preference shares can be redeemed either out of profit of the company or out of the proceeds of fresh issue.
(2) Preference shares are redeemed after equity shares.
(3) Preference shareholders have preference right as to dividend as well as return of capital.
(4) A company cannot issue preference shares redeemable after 20 years.
The correct statements are ________________.

Q. Which company can issue redeemable preference shares?

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Sources of Finance I

BUSINESS STUDIES

Watch in App

explore_more_icon

Explore more

Preference Shares

Standard XI Business Studies

Join BYJU'S Learning Program

CrossIcon