मराठी

Preference Shareholders Do Not Enjoy Normal Voting Rights. - Secretarial Practice

प्रश्न

State, with reason, whether the following statement is True or False.

Preference shareholders do not enjoy normal voting rights.

उत्तर

This statement is True.

Reasons: Meaning: Preference shares get priority over equity shares in two respects.

(A) Priority to get dividend. (B) Priority to get capital at winding.

(1) Holders of preference shares do not have normal voting rights like equity shares. However, they can vote on any such matter which is directly affects their interest as investors.

(2) It is ownership capital but less riskier due to guaranteed returns and payment of capital.

(3) It is temporary by nature, generally returned after a period of time. It is therefore safe capital.

(4) Preference shares earn a fixed rate of dividend.

(5) They have no participation in management or fight to attend meetings.

(6) They may vote by attending meetings especially called for them on a matter involving their interests if the need arises.

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Types of Shares - Preference Shares Equity Shares

या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?

Q 4.1 Q 3.5 Q 4.2

2016-2017 (March)

APPEARS IN

2016-2017 (March) (with solutions)

Q 4.1 | 5 marks

2013-2014 (October) (with solutions)

Q 4.D | 5 marks

संबंधित प्रश्‍न

Preference shares carry dividend at .......................... rate.

Fixed
Fluctuating
Lower

The type of shareholders who can participate in the management of the company.

Equity Shares and Preference Shares.

Equity shareholders are real owners and controllers of the company

Jain Ltd. converted 500, 8% debentures of Rs 100 each issued at a discount of 6% into equity shares of Rs 10 each issued at a premium of Rs 25 per share. Discount on issue of 8% debentures has not yet been written off. Showing your working notes clearly, pass necessary journal entries for conversion of 8% debentures into equity shares.

Pass necessary journal entries in the following cases

Jay Ltd. redeemed 1,500, 12% debentures of Rs 1,000 each issued at a discount of 10% by converting them into equity shares of Rs 50 each issued at par.

Define 'preference shares'. Explain various types of preference shares.

Draft a letter of allotment of shares to the applicant.

State, with reasons, whether the following statement is True or False :

Right shares are issued to the general public.

Equity shares are paid dividend at ____________ rate.

Name the shareholders who are real masters of the company.

Long Answer Question

What do you mean by the term ‘share’? Discuss the type of shares, which can be issued under the Companies Act, 2013 as amended to date.

Software solution India Ltd inviting application for 20,000 equity share of Rs 100 each, payable Rs 40 on application, Rs 30 on allotment and Rs 30 on call. The company received applications for 32,000 shares. Application for 2,000 shares were rejected and money returned to Applicants. Applications for 10,000 shares were accepted in full and applicants for 20,000 share allotted half of the number of share applied and excess application money adjusted into allotment. All money received due on allotment and call. Prepare journal and cash book.

Discuss the process for the allotment of shares of a company in case of over subscription.

Goodluck Ltd purchased machinery costing ₹ 10,00,000 from Fair Deals Ltd. The company paid the price by issue of Equity Shares of ₹ 10 each at a premium of 25%.
Pass necessary Journal entries for the above transactions in the books of Goodluck Ltd.

Jain Ltd purchased machinery costing ₹ 10,00,000 from Ayer Ltd. 50% of the payment was made by cheque and for the remaining 50% , the company issued Equity Shares of ₹ 100 each at a premium of 25% . Pass necessary Journal entries in the books of Jain Ltd . for the above transaction.

Sona Ltd. purchased machinery costing ₹ 17,00,000 from Mona Ltd. Sona Ltd. paid 20% of the amount by cheque and for the balance amount issued Equity Shares of ₹ 100 each at a premium of 25% . Pass necessary Journal entries for the above transactions in the books of Sona Ltd .Show your working notes clearly.

Light Lamps Ltd. issued 50,000 shares of ₹ 10 each as fully paid-up to the promoters for their services to set-up the company . It also issued 2,000 shares of ₹ 10 each credited as fully paid-up to the underwriters of shares for their services . journalise these transactions.

Ms. Rubina, a first-time investor, does not understand the difference between securities with voting rights and securities without voting rights.
Give any five differences between the two types of securities to help her understand the difference.