will preference share holders will have voting right?wat is
difference between eqity holders and preference share
holders

Answer Posted / anjana sehgal

No, Voting rights except in exceptional circumstances as
mentioned by Divya.

The basic difference between equity & preference shareholder
is that :

1. Preference of Paying Dividend : preference share holder
has preference of receiving dividend in the event any
decision regarding payment of dividend is taken i.e before
pronouncing dividend to equity shareholder co is required to
announce or declare dividend to preference shareholder

2. Preference of Repayment of Capital amount : As per Co's
Act no company can issue irredeemable preference share but
this is not in case of equity shares.

And also in case of winding up of the Co. preference
shareholders are given preference over equity shareholder
while repaying the capital sum invested by them in the form
of preference share capital.

Is This Answer Correct ?    1 Yes 1 No



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