MyQuestionIcon

1

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

Undersubscription

A company can...

Question

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

A

6 Years

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

B

7 Years

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

C

8 Years

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

D

20 Years

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

Open in App

Solution

The correct option is D 20 Years
According to Sec 55 of Companies Act, 2013 a company cannot issue any preference share, which is irredeemable or is redeemable after the expiry of period of twenty years from the date of its issue.

Suggest Corrections

thumbs-up

0

Similar questions

Q. A company can issue preference shares which are redeemable after the expiry of

20

years from the date of its issue.

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. During the year 2005-2006, T Ltd. issued 20,000, 12% Preference shares of Rs. 10 each at a premium of 5%, which are redeemable after 4 years at par. During the year 2010-2011, as the company did not have sufficient cash resources to redeem the preference shares, it issued 10,000, 14% debentures of Rs. 10 each at a premium of 10%. At the time of redemption of 12% preference shares, the amount to be transferred to capital redemption reserve will be ______.

Q. Which company can issue redeemable preference shares?

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Mismatch in Demand and Supply

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Undersubscription

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon