A Ltd. is a listed public company in which Mr. X is working as Managing Director, 120 Permanent Employees including 10 directors, 75 contractual employees, and 3 Independent directors. The company wants to issue debentur

CS Executive · Corporate and Management Accounting · PYQS · June 2024
A Ltd. is a listed public company in which Mr. X is working as Managing Director, 120 Permanent Employees including 10 directors, 75 contractual employees, and 3 Independent directors. The company wants to issue debentures under the Employees Stock Option. To whom company can issue debenture under this scheme ?
(A) To all the 200 employees i.e. Managing Director, Permanent Employees, Contractual Employees and Independent Directors
(B) To the Managing Director, Permanent Employees and Contractual labours
(C) To the Managing Director and to the Permanent Employees only
(D) Debentures cannot be issued under the Employees Stock Option Scheme

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Corporate Accounting

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