Question

Redeemable preference shares can be redeemed _____________.

• A. only if they are fully paid
• B. even if they are partly paid
• C. if they are paid more than 50% of nominal value
• D. only if they are issued at premium

Answer 1

The correct option is A only if they are fully paid

The redeemable preference shares must be fully paid-up.

The redeemable preference shares can be redeemed only if the terms laid down at the time of issuing are met. However, on approval of shareholders and under the conditions laid down in Section 48 of the Act, certain provisions can be altered/modified.