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i want 2 convert the equity shares of my cmpany into preference shares
Equity share are ownership shares in a company. The term equity refers to all forms of ownership holdings. Preferred shares are a form of stock shares that come with voting rights and priority for dividends and distributions.
1)Preference Shares have 2 preferences first payment of dividend in every year in which dividend is proposed & first share capital of preference shares will be payab;e @ winding up or liquidation of the company,where as equity share holders dividend after preference share holders & even share capital capital is also paid after paying to preference share holders. 2)preference share holders are not owners of the company and do not enjoy any voting right. Where as Equity Shares has voting right & they are the real owners of company. 3)Preference Shares have a finite tenure and carry a fixed rate of dividend where as dividend to equity shares is payable rest of the dividend payable after preference share holders.
potential equity shares are those 1. whose resources/considerations has been received and 2. whose resources have been reinvested in business. examples of potential shares are convertible preference shares, convertible debentures, employees stock options and share warrant.
Preference shares are shares whose dividends are paid out first before ordinary shares dividends. They so called (preference shares) because they have 'preference' over ordinary shares for payment of dividends.
i want 2 convert the equity shares of my cmpany into preference shares
it is a preference shares which willbe converted compulsory into equity shares after a stipulated time
Lets understand meaning of Preference Share in Layman language. As name suggest preference shares are those kind of shares which has preference in payment of dividend, and price of shares over equity shares. If company earn net profit, then first return to preference shareholders are given at first, and then to equity shareholders.
in case of non convertible preference shares, the holders are not given the right to convert their shares into equity shares.
the components of capital structure(CS) includes: 1. CS with equity sahres only. 2. CS with equity and preference shares. 3. CS with equity and debentures. 4. CS with equity shares, preference shares and debentures.
Total equity and common equity are separate things where there is preference shares are also issued in that case only shares issued to common share holders are included in common equity while in total equity shares issued to preference shareholders are also included.
Equity share are ownership shares in a company. The term equity refers to all forms of ownership holdings. Preferred shares are a form of stock shares that come with voting rights and priority for dividends and distributions.
1)Preference Shares have 2 preferences first payment of dividend in every year in which dividend is proposed & first share capital of preference shares will be payab;e @ winding up or liquidation of the company,where as equity share holders dividend after preference share holders & even share capital capital is also paid after paying to preference share holders. 2)preference share holders are not owners of the company and do not enjoy any voting right. Where as Equity Shares has voting right & they are the real owners of company. 3)Preference Shares have a finite tenure and carry a fixed rate of dividend where as dividend to equity shares is payable rest of the dividend payable after preference share holders.
different types of shares..equity,,preference
Ordinary and preference shares debentures securities also things like equity stock etc.
1 - Both are part of share capital of business 2 - Both have the voting powers 3 - Both are equity based financing tools.
first check the articles of association (AOA) of the company if they allow such conversion or at least issue of preference shares with conversion option. secondly check if the shares were originally issued with conversion option, if yes, pass a board resolution and issue new equity shares. if no, then first amend AOA to allow such conversion, then vary the members rights u/s 106-107 of the companies act, then pass a shareholders resolution for issue of equity share holders u/s 81(1A) and of preference share holders permitting issue of equity shares.