preference share table series 61


Posted on 02-04-2016        By ADMIN

preference share table series 61 1. PREFERENCE SHARES. Meaning of Preference shares: Preference shares are shares, which have preferential rights (i.e., first priority or preference over other kinds of shares) in respect of payment of dividend during the existence of the company, and also in respect of repayment or refund of share capital in the event of the winding up of the company. In fact, it is because of their preferential rights in respect of the payment of dividend and repayment of capital that these shares are 1 mown as preference shares. Types of Preference Shares: 1. Cumulative Preference Shares: The holders of cumulative preference share are entitled to receive a fixed percentage of dividend before anything is given, tot other classes of shareholders. Apart from this right, in the case of these shares, if the company has no profits or inadequate profits in any year to declare dividend, the arrears of dividend would accumulate and become payable out of the future profits before anything is given to other classes of shareholders. 2. Non-Cumulative Preference Shares: Non-Cumulative preference shares are entitled to a fixed rate of dividend in the first instance (i,e., before anything is given to other types of shareholders). But they are entitled to receive the fixed percentage of dividend in the first instance only for the year or years when the company earns sufficient profits and dividend is declared. In case the company has no or inadequate profits in any year to declare dividend, then, the arrears of dividend do not accumulate and become payable out of future profits in the case of these shares. 3. Participating Preference Share: The ............................... download compete details file cs executive capital market security market notes companies act 2013 notes


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