Preference shares carry preferential rights with respect to _____________.

Payment of dividend

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Repayment of capital

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Both (A) & (B)

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Neither (A) nor (B)

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Solution

The correct option is C Both (A) & (B)
As per companies act, 2013, preference share capital is defined as instruments which have preferential right with respect to dividend payment (fixed/ on percentage basis) and repayment of capital during winding up of the company.

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Similar questions

Differentiate between equity shares and preference shares on the basis of :

(a) Payment of dividend

(b) Refund of capital

(d) Voting Rights

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