Question

The term preference share is defined in section ___________ of the New Companies Act, $2013$.

• A. $2\left(18\right)$
• B. $43\left(ii\right)$
• C. $85\left(2\right)$
• D. $89\left(1\right)$

Answer 1

The correct option is B $43\left(ii\right)$

The term preference share is defined in section 43(ii) of the companies act 2013. The term p[reference shares, with respect to a company limited by shares means a share which will have preferential rights with regards to-

a) payment of dividend.

b) repayment at the time of winding up of the company.