Question

Change in the rate of preference dividend payable in future without any change in the amount of capital is known as
(a) Reduction of Share Capital
(b) Alteration of Share Capital
(c) Vanation of Shareholders' Rights (d) Compromise/Arrangement
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Answer 1

Answer:

(b) Alternative of Share Capital...

Answer 2

The correct option is (b) Alteration of Share Capital. Alteration of share capital means:

• Any modifications to the terms of a company's share capital, such as the modification of the rights attached to the shares, the issuance of new shares, the consolidation of existing shares, or the division of existing shares, are referred to as "alteration of share capital."
• This procedure entails modifications to the company's articles of association and may call for consent from the shareholders and/or the appropriate regulatory bodies.
• The ownership structure, voting rights, and financial status of a firm may all be impacted by changes to the share capital.

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