Question

equity shareholders are real owners and controllers of company. justify​

Answer 1

Answer

This statement is True.

Explanation

1. Equity shareholders are the joint owners of the company. They have ownership rights in the company. They have the right to participate in the management of the company.

2. Since, equity shareholders accept the business risks in real sense, they are the real owners of the company.

3. The control of the company is vested in equity shareholders. This is because they have exclusive voting rights.

4. Equity share holders do not have special preferential rights either as to dividend and return of capital in the event of winding – op of the company. They have the risky of having nothing or have the chances of earning attractive dividend at an increasing rate.

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