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Which of the following statements is false :
A Company can issue redeemable debentures.
A Company can issue debentures with voting rights.
A Company can issue convertible debentures
A Company can buy its own debentures and shares.
- Option 1: A company can issue redeemable debentures. This is true. Companies often issue these with a fixed maturity date when they will repay the principal amount.
- Option 2: A company can issue debentures with voting rights. This is false. Debentures typically do not carry voting rights as they are debt instruments, unlike shares which can have voting power.
- Option 3: A company can issue convertible debentures. This is true. Convertible debentures can be converted into equity shares at a later date.
- Option 4: A company can buy its own debentures and shares. Generally, a company can buy back its own debentures and shares under specific regulations and circumstances.
Correct Answer: Option 2 (A Company can issue debentures with voting rights)
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