New Enroll in RBI Grade B New Batch - Starts on May 21

    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_________________
    A Payment of dividend Correct Answer Incorrect Answer
    B Repayment of dividend as a fixed amount Correct Answer Incorrect Answer
    C Right to vote on all the resolutions passed by a company Correct Answer Incorrect Answer
    D Payment of dividend either as a fixed amount or an amount calculated at a fixed rate Correct Answer Incorrect Answer
    E All a, b & c Correct Answer Incorrect Answer

    Solution

    Companies Act  Section 43. Kinds of share capital: (ii) “preference share capital”, 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— (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 the  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 the  memorandum  or  articles  of the company.

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