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Business Studies

Preference Shares

A company can...

Question

A company can not issue following kinds of shares _____________.

A

Redeemable equity shares

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B

Irredeemable preference shares

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C

Equity shares with differential voting rights

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D

Redeemable preference shares

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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.

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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?

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