Preference shareholders

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Kavitha (Querist)
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13 January 2010 Section 41(2) of the Companies Act 1956 says that any person other than the subscribers to the memorandum, who agree in writing to become members and whose names are entered in the register of members are members of a company.

Are preference shareholders members of a company? are thier names entered into the register of members?

CS Vandana Kacholia

CS Vandana Kacholia (Expert)
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13 January 2010 yes preference shareholders are also the members of the company and their name should be entered in the register of member but separetely with equity shareholders.

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