Which of the following statement is incorrect?

Preference shareholders have no voting rights at meetings of shareholders

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At the time of liquidation of a company, preference shareholders are entitled to receive their investments before equity shareholders

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Preference shareholders have a priority right to receive dividends

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None of the above

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Solution

The correct option is D
None of the above

All the statements are correct.

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Similar questions

Q. The following statements apply to equity/preference shareholders. Which one of them applies only to Preference Shareholders?

Q. Preference shareholders are entitled to a fixed rate of _________.

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.

Q. Consider the following statements:
(1) Preference shares can be redeemed either out of profit of the company or out of the proceeds of fresh issue.
(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. Preference shareholders are ______ of the company.

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Which of the following statement is incorrect?

The correct option is D None of the above All the statements are correct.

The correct option is D
None of the above

All the statements are correct.