Question

differentiate between equity shares and preference shares on the basis of voting right

Answer 1

Equity Shares are the shares that carry voting rights and the rate of dividend also fluctuate every year as it depends on the amount of profit available to the company. On the other hand, Preference Shares are the shares that do not carry voting rights in the company as well as the amount of dividend is also fixed.

Answer 2

Preference Shareholders:

The holders of Preference shares has no right to vote in any general meeting ,except in certain cases specified under section 47

Equity Shareholders:

The holders of equityshares have right to vote in every general meeting