(a) Preference shares entitle their holders the right to receive dividends of a fixed amount or at a fixed rate. (b) Preference shares entitle their holders the preferential right to receive repayment of capital invested by them before their equity counterparts at the time of winding up of the company.
Preference over equity shareholders in the payment of dividend from the profits of the company. Preference in the repayment of their investment during winding up of the company.
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(a) Preference shares entitle their holders the right to receive dividends of a fixed amount or at a fixed rate. (b) Preference shares entitle their holders the preferential right to receive repayment of capital invested by them before their equity counterparts at the time of winding up of the company.
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Answer:
Preference over equity shareholders in the payment of dividend from the profits of the company. Preference in the repayment of their investment during winding up of the company.