if they are paid not less than 50% of the nominal value of shares
only if they are fully paid
even if they are partly paid
only if they are issued at premium
Answer is Right!
Answer is Wrong!
The correct answer is C. even if they are partly paid.
Redeemable preference shares are a type of preference share that can be redeemed by the company at a specified time and price. The company must have the financial resources to redeem the shares, and the shareholders must be given notice of the redemption.
Partly paid shares are shares that have not been fully paid for by the shareholder. The shareholder may be required to pay the balance of the purchase price at a later date, or the company may forgive the balance of the purchase price.
The other options are incorrect because:
- Option A is incorrect because there is no requirement that redeemable preference shares be paid not less than 50% of the nominal value of shares.
- Option B is incorrect because redeemable preference shares can be redeemed even if they are partly paid.
- Option D is incorrect because redeemable preference shares can be issued at par, at a discount, or at a premium.