what is diffrence between redeemable and irredeemable
Answers
Redeemable preference shares are those preference shares which are redeemed on the expiry of a fixed period of time whereas irredeemable preference shares are redeemed (refunded) only at the time of winding up of the company.
CORRECT QUESTION:
What is difference between redeemable and irredeemable?
ANSWER:
Redeemable preference shares are those preference shares which are redeemed on the expiry of a fixed period of time whereas irredeemable preference shares are redeemed only at the time of winding up of the company.
Redeemable debentures carry a specific date of redemption on the certificate.
The company is legally bound to repay the principal amount to the debenture holders on that date.
On the other hand, irredeemable debentures, also known as perpetual debentures, do not carry any date of redemption.