Do preference shareholders get an upper hand during the time of liquidation of the company?

True

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False

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Solution

The correct option is A
True

During the time of liquidation, preference shareholders have the right to receive their investment prior to equity shareholders.

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Similar questions

Q. Preference shareholders are ______ of the company.

Payment of fixed rate of dividend to preference shares may enable a company to declare higher rates of dividend for the equity shareholders in good times.

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(2) Preference shares are redeemed after equity shares.
(3) Preference shareholders have preference right as to dividend as well as return of capital.
(4) A company cannot issue preference shares redeemable after 20 years.
The correct statements are ________________.

Q. When an existing company is liquidated and a new company is formed with the same shareholders to take over its business, it is called __________.

Q. In an AGM of a Private Limited Company there was one Shareholder present. Meeting was adjourned. In the adjourned meeting again one shareholder was present. Total number of shareholders in the company are 2. What will be true?

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Do preference shareholders get an upper hand during the time of liquidation of the company?

The correct option is A True During the time of liquidation, preference shareholders have the right to receive their investment prior to equity shareholders.

The correct option is A
True

During the time of liquidation, preference shareholders have the right to receive their investment prior to equity shareholders.