alleryStart learning →Which preference shares can be redeemed?
APartly paid shares
BCalls-in-arrears shares
CFully paid shares only
DForfeited shares
Answer & Solution
Correct answer: C. Fully paid shares only
The Act bars redemption of any preference shares that are not fully paid.
Keep practising Company Accounts
Browse all Company Accounts questions for CA Foundation, or explore more Accounting topics.
Related questions
Investors were historically given what as evidence of share ownership?Putable preference shares let the holder, in some conditions, to:On liquidation, a preference share's claim is relative to common stock:Most preference shares carry which voting position?Convertible preference shares can be exchanged by holders for:Non-cumulative preference dividends, if unpaid in a year:Preference shares usually rank for dividend payment:A cumulative preference share means unpaid dividend will: