Question
Which of the following is NOT correct about Equity and
Preference share?Solution
Shares can be classified into two categories - Preference shares and equity shares. ·       Preference shares: According to Section 43 of Companies Act 2013, persons holding preference shares are assured of preferential dividend at a fixed rate during the life of the company. ·       Equity shares: Equity shares are those shares, which are not preference shares. It means they do not enjoy any preferential rights in the matter of payment of dividend or repayment of capital.
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