1-they have got preferencial right over the divident
2-they don't have voting right
3- the liability is limited
4-the divident rate is fixed
5-financial flexibility
1.cumulative preference share capital 2.non cumulative preference share capital 3.participative preference share capital 4.non participative preference share capital
1.cumulative preference share capital 2.non cumulative preference share capital 3.participative preference share capital 4.non participative preference share capital
Paid in capital includes the preference share capital as well as common share capital as well.
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.
Preference share capital means share capital which have preference over all other kind of share capital in term of profit and clearance at the time of dissolution of business.
Preference share capital is that capital which has preference over any other kind of capital and it has fixed interest rate no matter company earning profit or not as well as first of all this capital is cleared at the event of liquidation.
Following are different types of share capital. 1 - Preference share capital 2 - Common share capital
Preference share capital is that type of capital which receives the fixed percentage of profit no matter if company earns profit or loss and it has preference over all other kind of share capital. EQUITY CAPITAL is that capital which have right to profit after all other kind of liabilities payment and only receives profit if company earns profit.
As per Companies Act 1956, Preference share capital is regarded as Capital of the company and not Loan. In view of this, it is not to be deducted to ascertain net assets. This is in turn depend on the purpose for which netassets is being ascertained.
Equity Share Capital +Preference Share Capital + Reserves and Surpluses constitute the Share Holders fund
different types of shares..equity,,preference
Preference shares are equity form of capital while debentures are debt form of capital both type of capital has preference to be paid before the normal share capital holders in case of liquidation but interest paid on debentures is tax deductable which means that by paying interest company can save tax as interest reduces the net income of company while preference share holders receive interest after tax deducted net profit.