Question
Preferential shares with reference to any company
limited by shares, means that part of the issued share capital of the company which carries or would carry a preferential right with respect to_________________Solution
Companies ActĀ Section 43. Kinds of share capital: (ii) āpreference share capitalā, with reference to any company limited by shares, means that part of the issued share capital of the company which carries or would carry a preferential right with respect toā (a) payment of dividend, either as a fixed amount or an amount calculated at a fixed rate, which may either be free of or subject to income-tax; and (b) repayment, in the case of a winding up or repayment of capital, of the amount of theĀ share capital paid-up or deemed to have been paid-up, whether or not, there is a preferential right to the payment of any fixed premium or premium on any fixed scale, specified in theĀ memorandumĀ orĀ articlesĀ of the company.
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