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    Question

    State which statement is incorrect:

    A In case of merger – We can issue either preference shares or equity shares to PSH. Correct Answer Incorrect Answer
    B In case of merger – We can issue only preference shares to PSH. Correct Answer Incorrect Answer
    C In case of purchase – We can issue either preference shares or equity shares to PSH. Correct Answer Incorrect Answer
    D None of the above. Correct Answer Incorrect Answer

    Solution

    Explanation: In case of merger, both equity or preference shares can be issued to the shareholders of the transferor company. Statement (c) is incorrect.

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