Question

Which of the following right may be given to preference shareholders if provided by Articles?

• A. To participate in the surplus profits remaining after payment of equity dividend
• B. To receive arrears of dividend at the time of winding up
• C. To receive premium on redemption of preference shares
• D. All of the above

Answer 1

The correct option is D All of the above

If provided by the Articles of Association, the following rights may be given to the shareholders of preferential shares:
To participate in the surplus profits remaining after payment of equity dividend

To receive arrears of dividend at the time of liquidation

To receive premium on redemption of preference shares.