Assertion (A): A company must have equity share capital. Reason (R): A company may not have any preference share capital. In the context of the above statements, which one of the following is correct?

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KollegeApply · Accepted Answer

Both (A) and (R) are true, but (R) is not the correct explanation of (A). Explanation: A company must have equity share capital as it represents ownership and is essential. Preference share capital is optional, so a company may choose not to issue it. But the reason doesn't explain the assertion.

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