Question
Describe different types of equity shares.

Answer

The equity shares can be of two types:
(i) Equity share (with normal) with voting rights

  • The voting right of such equity holders is in proportion to his shareholdings.

(ii) Equity shares with differential voting right

  • Such equity shareholders shall have varying rights regarding dividend voting or otherwise in accordance with Rule 4 of Companies Act (Share Capital and Debenture) Rules 2014.
  • A company can thus, issue shares with limited voting rights or no voting rights.
  • They may be entitled to an extra rate of dividend.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free