Question

Holders of preference shares will have a right to vote if the dividend remains in arrears for a period not less than-​

Answer 1

Holders of preference shares will have a right to vote if the dividend remains in arrears for a period not less than 2 years.

• The aforementioned statement is a part of section 47, Companies Act 2013.
• The holders of preference shares are not entitled to any rights to vote in the normal course.
• If the amount of dividend to be paid to them is in arrear for 2 or more years, such shareholders can exercise voting rights.
• They will be able to give a vote in support of or against any resolution in business meetings.