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Question : A company cannot issue:

 

Option 1: Redeemable preference shares 

Option 2: Redeemable equity shares 

Option 3: Redeemable debentures 

Option 4: Fully converrtiable debentures


Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: Redeemable equity shares


Solution : Answer = Redeemable equity shares

Equity shares represent ownership stakes in a company and are considered permanent sources of capital. Unlike preference shares or debentures, which may have redemption provisions, equity shares typically cannot be redeemed by the company. Hence, a company cannot issue redeemable equity shares.

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