Which of the following is false?a)A company can issue irredeemable deb...
False Statement:
A company can issue debentures with voting rights.
Explanation:
Debentures are long-term debt instruments that are issued by companies to raise funds from the public. They are similar to bonds, but they are not secured by any assets of the company. Debentures are generally issued with a fixed rate of interest and a specific maturity date.
However, debentures do not carry any voting rights for the holders. This means that the holders of debentures cannot participate in the decision-making process of the company. They are only entitled to receive interest and principal payments as per the terms of the debenture agreement.
Therefore, option B is false, as a company cannot issue debentures with voting rights. Debentures only provide a fixed income to the holders and do not give them any ownership or control over the company.
Other options are true:
a) A company can issue irredeemable debentures: Irredeemable debentures are those that do not have any maturity date. They are perpetual in nature and the company is not required to repay the principal amount to the debenture holders. However, the company is still required to pay interest on such debentures.
b) A company can buy its own shares: A company can buy back its own shares from the market, which is known as share buyback. This is done to reduce the number of outstanding shares and increase the value of the remaining shares. However, there are certain restrictions and regulations that govern share buybacks.
c) A company can buy its own debentures: A company can also buy back its own debentures from the market, which is known as debenture buyback. This is done to reduce the debt burden on the company and improve its financial position. However, there are certain restrictions and regulations that govern debenture buybacks.
Which of the following is false?a)A company can issue irredeemable deb...
Option B is false because a cannot issue debentures with voting rights as the debenture holders are the creators of the company.only share holders have voting rights.