Beruflich Dokumente
Kultur Dokumente
Bibliography :
Legal Aspects Of Business A. Pathak The company law Garg & Chawla Financial Accounting SA Siddiqui Company Accounts Juneja, Chawla & Saxena
Contents :
What are SHARES. Kinds of Shares :
Equity Shares Preference Shares Deferred Shares
Kinds Of Shares :
The different kinds of shares which can be raised by Companies are : EQUITY SHARES PREFERENCE SHARES DEFERRED SHARES
Equity Shares :
The equity shares or ordinary shares are those shares on which the dividend is paid after the dividend on fixed rate has been paid on preference shares.
Preference shares :
Preference shares are those shares which carry with them preferential rights for their holders, i.e, preferential right as to fixed rate of dividend & as to repayment of capital at the time of winding up of the Company.
Characteristics :
Fixed rate of dividend. Priority as to payment of dividend. Preference as to repayment of capital during liquidation of the Company. Generally preference shareholders do not have voting rights. According to The Companies (Amendment) Act, 1988, the preference shares are redeemable & the maximum period for which they can be issued is 10 years.
Deferred Shares :
Deferred shares are those shares on which the payment of dividend and capital (at the time of winding up of a company) is made after money is paid in full on preference shares and equity shares. As per the provisions of the COMPANIES ACT,1956, no public company can issue deferred shares. Characteristics: Rate of dividend is not fixed. It depends upon the availability of profits & the discretion of the Board of the Directors. Dividend is paid after payment of dividend on equity & preference shares. At the time of liquidation, capital on these shares is returned after capital is repaid on both preference & equity shares.
Thank you!!