The correct answer is D. All are correct.
Section 55 of the Companies Act 2013 states that a company may redeem any of its preference shares at any time after the expiry of five years from the date of its issue, subject to the following conditions:
- The redemption must be out of profits available for dividend or out of the proceeds of a fresh issue of shares made for the purpose of redemption.
- The redemption must be approved by a special resolution passed by the company at a general meeting.
- The redemption must be announced to the shareholders at least 30 days before the date of redemption.
The Act does not specify how the redemption of preference shares should be funded. However, the three options listed in the question are all possible methods of funding redemption.
Option A: Redemption out of profits available for dividend
This is the most common method of funding redemption. The company can use its profits available for dividend to pay off the preference shareholders.
Option B: Redemption from the issue of new shares
The company can issue new shares and use the proceeds from the issue to pay off the preference shareholders.
Option C: Redemption partially from available profits and partially from issue of new shares
The company can use a combination of profits available for dividend and the proceeds from the issue of new shares to pay off the preference shareholders.
The method of funding redemption that is chosen will depend on the financial position of the company and the terms of the preference shares.