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easyMCQCUET Accountancy 2025 13 May Shift 12026CUET Accountancy
1 mark

Which section of the Indian Companies Act, 2013 clarifies the legal classification of share capital into Equity shares and Preference shares?

  1. A
    Section 40
  2. B
    Section 41
  3. C
    Section 42
  4. D
    Section 43

Solution & Step-by-step Explanation

Section 43 of the Companies Act, 2013 explicitly sets out the provisions regarding the kinds of share capital, stating that the share capital of a company limited by shares shall be of two kinds, namely: Equity share capital and Preference share capital.

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Which section of the Indian Companies Act, 2013 clarifies the legal classification of share capital into Equity shares and Preference shares?
A
Section 40
B
Section 41
C
Section 42
D
Section 43

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