Preference Shareholders?

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

09 March 2010 Are preference shareholders owners of the Company? State reasons for the answer.

Ankur Garg

Ankur Garg (Expert)

09 March 2010 No as per company law preference shareholders are not the owners of company. Indian company law recognizes equity share holders as owners of the company.

However certain rights are given to preference shareholders in company law which depends on the nature and terms and conditions of issue of preference shares.

Regards

Message likes : 1 times

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

09 March 2010 AGREE.

Querist : Anonymous

Querist : Anonymous (Querist)

09 March 2010 Well i need a well drafted answer to this.. i mean its not clearly written in the Act that "preference shareholders are not the owners of a Company"

Can u suggest me a source wherefrom i can get this? or any case law from where this point has been deduced?

Ankur Garg

Ankur Garg (Expert)

09 March 2010 Kindly appreciate this is a well settled opinion of company law. It would be very difficult for anyone to find out exact clarification you are looking for.

Check some law book or search on google.

Regards

Querist : Anonymous

Querist : Anonymous (Querist)

09 March 2010 Ya i m doing it.. Maybe i find some supporting facts.. Thank U so much Mr. Garg.. You have always been of great help

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now