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yes it can be issued
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∙ 11y ago
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What is procedure of convert preference share into equity share?
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.
What is preference shares?
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.
What is the difference between return on total equity and return on common equity?
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.
Who is a preference share?
There are 2 types of shareholders1.Equity2. Preferencepreference shareholders have preference in the payment of dividend over equity shareholders. Usually their % of dividend is fixed at the time of issue.For further details check out this linkhttp://www.legalserviceindia.com/company%20law/com_2.htm
Who is a preference share holder?
There are 2 types of shareholders1.Equity2. Preferencepreference shareholders have preference in the payment of dividend over equity shareholders. Usually their % of dividend is fixed at the time of issue.For further details check out this linkhttp://www.legalserviceindia.com/company%20law/com_2.htm
Net income divided by average shareholders equity gives you?
Earning per share = Net income / average shareholders equity
Is shareholders equity an expense?
Share holder equity is liability for business which is refundable at dissolution of business
Who will paid first debenture holders or preference share holders?
Debenture holders will get preference over preference shareholders
Difference between preference share and equity share?
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.
What are the difference between equity share capital and preference shares capital and examples?
Preference share capital is type of capital which has preference on other type of share capital as preference share capital may have more profit ratio than other and it is paid first from profit of company and preference share holders get there share even if company has earn no profit. Equity share capital is share capital on which share holders get share from profit in the last after paying every other obligation on company. Detail answer available in related link.
What is share holders fund?
Equity Share Capital +Preference Share Capital + Reserves and Surpluses constitute the Share Holders fund
Difference between debenture and equity share?
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. Detailed answer here: http://financenmoney.in/types-of-share/
