alleryStart learning →If a scheme converts preference shares into equity, s.230(7)(a) gives holders which option?
AOnly a cash refund
BRedemption at 2x face
CCash arrears or equity
DOnly fresh debentures
Answer & Solution
Correct answer: C. Cash arrears or equity
The order must let preference holders choose between cash arrears of dividend and equity shares equal in value to that dividend.
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