Sunday, July 19, 2020

Equity & Preference Share Capital

Equity Share Capital:-

With reference to any company limited by shares, means all share capital which is not preference share capital is known as Equity Share Capital.

Preference Share Capital:-

With reference to any company limited by share, means that part of the issued share capital of the company which carries or would carry a preferential right with respect to - 
  • payment of dividend.
  • repayment in case of a winding up.

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