company X holds 100 percent equity shares in company A and 75 percent preference shares in same company. Do we need to calculate Minority Interest for remaining 25 percent ?
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Quick Summary
This discussion clarifies whether minority interest needs to be calculated for the remaining 25% of preference shares in a subsidiary, even if the parent holds 100% of ordinary shares and 75% of preference shares. While preference shareholders may not have voting rights, they are still considered a minority interest group with specific rights in case of default. The conversation also touches upon the forum's etiquette regarding repetitive or unhelpful posts.
As far as preference shareholders are concerned , the minority interest will be 25% only.
However as a seperate group of investors, they have right ,(in case of default by company as regards preference shares Dividend or Redemption etc) to demand for a meeting of preference shareholders and all related rights .