. A company cannot issue


A: Redeemable Equity Shares

B: Redeemable Preference Shares

C: Redeemable Debentures

D: Fully Convertible Debentures
 

Best Answer

Explanation:

Redeemable equity shares can not be issued because equity shareholders are the owners of the company.

Equity shares are issued to raise capital for the lifetime, they cannot be redeemed. 

Redeemable preference shares are those preference shares, the face value of which will be paid by the company at maturity.

In other words, they have a maturity period and will be paid back to the holder at the time of maturity.

As per the Sec.55 of the company act, the company can issue redeemable preference shares. 

Redeemable debentures are those debentures that have specific life means the holder of the debentures will be paid back at the maturity date.

According to rule 18 of the Companies (Share conditions & Debentures) rule (6), 2014, a company can issue redeemable debentures.

Fully convertible debentures are those debentures that can be converted after a specific period.

According to rule 2(1)(c)(ix) Companies (Acceptance of Deposits) Rules, 2014, a company can issue fully convertible debentures.

Final Answer: Hence, the correct answer is option A: Redeemable Equity Shares.

 

 

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