Question

    Which of the following is true about SR Equity Shares

    (Superior Voting rights) that can be listed on stock exchange at IFSC (i)            Superior voting right shares, offer a higher dividend than ordinary shares (ii)           They do not subscribe to the rule of one share-one vote (iii)          It’s a very old concept in India (iv)         One of the reasons for introduction of SR shares was to encourage such promoters/founders who have an executive position in the company to retain a certain amount of control for a limited period
    A Only I, iii and iv are correct Correct Answer Incorrect Answer
    B Only I, ii and iv are correct Correct Answer Incorrect Answer
    C Only I, ii and iii are correct Correct Answer Incorrect Answer
    D All are correct Correct Answer Incorrect Answer
    E None is correct Correct Answer Incorrect Answer

    Solution

    SR shares are a relatively new concept in India, the sale of such shares is allowed in countries like the US, and closer home in Hong Kong and Singapore, subject to stricter corporate governance norms

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