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    Rights of Preference Shareholders

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    pranab sahu
    Preference shareholders have preferential rights over equity shareholders in certain areas. They enjoy preferential rights to dividend payments during the company's lifetime. Their claim to dividends is prior to that of equity shareholders. The dividend rate for preference shares is fixed whether the company makes a profit or not. If the company skips preference dividends for three years, voting rights are granted on matters affecting them. During winding up, preference shareholders must have their capital repaid before equity shareholders or any other class of shareholders.

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    Rights of Preference Shareholders

    Uploaded by

    pranab sahu
    13K views1 page
    Preference shareholders have preferential rights over equity shareholders in certain areas. They enjoy preferential rights to dividend payments during the company's lifetime. Their claim to dividends is prior to that of equity shareholders. The dividend rate for preference shares is fixed whether the company makes a profit or not. If the company skips preference dividends for three years, voting rights are granted on matters affecting them. During winding up, preference shareholders must have their capital repaid before equity shareholders or any other class of shareholders.

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    RIGHTS OF PREFERENCE SHAREHOLDERS

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    Preference shareholders have preferential rights over equity shareholders in certain areas. They enjoy preferential rights to dividend payments during the company's lifetime. Their claim to dividends is prior to that of equity shareholders. The dividend rate for preference shares is fixed whether the company makes a profit or not. If the company skips preference dividends for three years, voting rights are granted on matters affecting them. During winding up, preference shareholders must have their capital repaid before equity shareholders or any other class of shareholders.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
    13K views1 page

    Rights of Preference Shareholders

    Uploaded by

    pranab sahu
    Preference shareholders have preferential rights over equity shareholders in certain areas. They enjoy preferential rights to dividend payments during the company's lifetime. Their claim to dividends is prior to that of equity shareholders. The dividend rate for preference shares is fixed whether the company makes a profit or not. If the company skips preference dividends for three years, voting rights are granted on matters affecting them. During winding up, preference shareholders must have their capital repaid before equity shareholders or any other class of shareholders.

    Copyright:

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    Download as DOC, PDF, TXT or read online from Scribd
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    of 1

    CRYSTO GRAPHITES Pvt. Ltd.

    Manufacturer of Natural Graphite Powder & Flakes


    VIP Plot No. 130, Ekamra Vihar, IRC Village, Nayapali,
    Crysto Graphites
    Bhubaneswar, State - Orissa, India-751015
    Pvt.
    Crysto Ltd.
    Graphite Phone No. 0674-2550681, 6547968, Mob-9437040681 Fax-0674-2550681
    E Email.ID pranab@crystographites.com

    RIGHTS OF PREFERENCE SHAREHOLDERS

    1- The Preference Shareholders enjoy a preferential right in the payment of dividend


    during the life time of the company.

    2- The claim of Preference shareholders is prior to the claim of Equity shareholders or any
    other class of shareholders.

    3- The dividend rate is fixed for the preference shareholders, whether the company makes
    profit or not.

    4- If the company will skip preference dividends for three years, then it has to grant voting
    right to preference shareholders , on matters affecting them.

    5- When the company is wound up, then the repayment of capital will paid first to the
    preference shareholders, prior to the equity shareholders or any other class of shareholders.

    6- The shareholders will get a certificate issued by the company according to “The
    Preference Shares (Regulation of Dividends) Act 1960”.

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