alleryStart learning →Redeemable preference shares may be redeemed out of profits or what?
AProceeds of fresh debentures
BSale proceeds of fixed assets
CProceeds of a new bank loan
DProceeds of a fresh share issue
Answer & Solution
Correct answer: D. Proceeds of a fresh share issue
Redemption is allowed only from distributable profits or from the proceeds of a fresh issue of shares made for that purpose.
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