Question

At present, a company limited by shares cannot issue _________ preference shares.

• A. redeemable
• B. irredeemable
• C. convertible
• D. none of the above

Answer 1

Answer: (B)

irredeemable

Preference shares are those which are having preference over equity shares on dividend payment and amount payable at the time of liquidation of the company. Preference shares may be redeemable and irredeemable.

Listed companies are not allowed to issue irredeemable shares.