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    Screenshot - 2024 02 21 16 04 21 061 - Com - Jackrehan.class12notesoffline

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    sachinnkumarr1392
    The document discusses different types of preference shares and compares preference shares to equity shares. It describes cumulative preference shares which allow unpaid dividends to be paid from future profits. Participating preference shares receive fixed dividends and may participate in surplus profits after equity shareholders. Non-cumulative shares only receive dividends from current year profits. Non-participating shares receive only fixed dividends without participating in surplus profits. Redeemable shares must be repaid by the company after a fixed period or liquidation, while non-redeemable shares have no repayment condition. Convertible shares can be converted to equity shares under certain terms, while non-convertible cannot. Equity shares receive non-fixed dividends from remaining profits after preference

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    Screenshot - 2024 02 21 16 04 21 061 - Com - Jackrehan.class12notesoffline

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    sachinnkumarr1392
    13 views2 pages
    The document discusses different types of preference shares and compares preference shares to equity shares. It describes cumulative preference shares which allow unpaid dividends to be paid from future profits. Participating preference shares receive fixed dividends and may participate in surplus profits after equity shareholders. Non-cumulative shares only receive dividends from current year profits. Non-participating shares receive only fixed dividends without participating in surplus profits. Redeemable shares must be repaid by the company after a fixed period or liquidation, while non-redeemable shares have no repayment condition. Convertible shares can be converted to equity shares under certain terms, while non-convertible cannot. Equity shares receive non-fixed dividends from remaining profits after preference

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    The document discusses different types of preference shares and compares preference shares to equity shares. It describes cumulative preference shares which allow unpaid dividends to be paid from future profits. Participating preference shares receive fixed dividends and may participate in surplus profits after equity shareholders. Non-cumulative shares only receive dividends from current year profits. Non-participating shares receive only fixed dividends without participating in surplus profits. Redeemable shares must be repaid by the company after a fixed period or liquidation, while non-redeemable shares have no repayment condition. Convertible shares can be converted to equity shares under certain terms, while non-convertible cannot. Equity shares receive non-fixed dividends from remaining profits after preference

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    13 views2 pages

    Screenshot - 2024 02 21 16 04 21 061 - Com - Jackrehan.class12notesoffline

    Uploaded by

    sachinnkumarr1392
    The document discusses different types of preference shares and compares preference shares to equity shares. It describes cumulative preference shares which allow unpaid dividends to be paid from future profits. Participating preference shares receive fixed dividends and may participate in surplus profits after equity shareholders. Non-cumulative shares only receive dividends from current year profits. Non-participating shares receive only fixed dividends without participating in surplus profits. Redeemable shares must be repaid by the company after a fixed period or liquidation, while non-redeemable shares have no repayment condition. Convertible shares can be converted to equity shares under certain terms, while non-convertible cannot. Equity shares receive non-fixed dividends from remaining profits after preference

    Copyright:

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    Download as xlsx, pdf, or txt
    of 2

    (ii) any fixed premium or premium on any fixed scale, specified in the memorandum or articles of

    the company.
    Types of Preference Share
    Cumulative Preference Shares:
    It carries the right ol dividend,which is to be paid out of the current yeor profit, but if current year profit is
    not sufficient then it will be
    p:lid oulof fulure profit
    '" -J
    Participating Preference
    Shares :
    It carries the- rieht of fixed dividrnd,thC'y arr also ;illowC'd to participatein the surplus profits (if any) oncethe equity shareholders are paid oll.
    Non-Cumulative
    Preference Shares :
    ll carries the right or
    dividend, which is to be paid out of the current yeor profit, only.
    Non-Paricipating Preference
    Shares:
    It carries the right of fixed d vidend only, they arc not allowed to participatein the n1rplu:> profits.

    Redemable Preference
    Shares :
    These shares areissued witha condition that company will nMkP therepayment onthese shares after a fixed period or at the time of liquidation of the company (whicheveris earlier
    Non-Redemable Preference
    Shares :
    These sh\lres \Ire not issued with

    .11lY cmditionor IpcJpmplion.


    Convertible Preference
    Shares :
    These shares can be converted
    into the equity shares (with term &
    Non-Convertible Preference
    Shares :
    Theseshare5 ccin not be converted
    into the equity shares

    ..
    -c:?-
    Equity Share : "Equity share capital" means, with reference to any such company, all share
    capital which is not preference share capital. Equity share holders are paid to the whole of the profits made by the company after the fixed dividends payable on the preference
    •., Equity share is also known as ordinary shares
    Dividend on these shares is not fixed

    '* They are allowed to take part in the management of the busin ess
    1. At the time of winding up Equity share holders are repaid after the preference
    shareholders.

    Equity Share capitalmay be


    With differential rights as to voting,
    dividend etc
    With voting Rights
    Distin2uish between a preference share and an equity share
    l:Jtt
    CSJSiliil'l,RIJ.
    §,llltfli'l,Rli·
    4£
    WS
    d dividends payable on the preference shares.

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