Which of the following is NOT a valid classification type of Preference Shares under standard Indian corporate law frameworks (where one option is traditionally prohibited or considered non-standard for ongoing companies)?
- AParticipating Preference Shares
- BCumulative Preference Shares
- CIrredeemable Preference Shares
- DConvertible Preference Shares
Solution & Step-by-step Explanation
According to Section 55 of the Companies Act, 2013, no company limited by shares can issue any preference shares which are irredeemable. Hence, Irredeemable Preference Shares cannot be issued by a company and are not an authorized functional type of preference shares in Indian business accounting context.