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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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