Question

A company cannot issue ______.

Options

• Redeemable Equity Shares

• Redeemable Preference Shares

• Redeemable Debentures

• Fully Convertible Debentures

Answer 1

A company cannot issue Redeemable Equity Shares.

Explanation:

Equity shares represent permanent ownership capital of a company and cannot be redeemed during its lifetime. Only preference shares can be issued as redeemable (as per Companies Act, 2013). Debentures (including redeemable or convertible) can also be issued.