Question

Equity Shares can be issued ___________________.

• A. With proportionate voting rights only
• B. With differential voting rights only
• C. With differential right as to dividend and voting
• D. None of these

Answer 1

Answer: (C)

With differential right as to dividend and voting

The issue of shares is done by the company to raise capital. they receive a payment of higher dividends and appreciation in the market value of the shares. Equity Share Capital may be with the voting rights or with the differential rights . Usually, a company does not call the full amount at once from the shareholders.