EXPLAIN THE FEATURES OF EQUITY SHARES



Meaning: -According to the companies Act, 1956. All shares which are not preference shares are equity shares. The capital collected by a company by issuing equity shares is called Equity Shares Capital. Equity shares do not have claim prior to preference shares for payment of dividend and repayment of capital. If a company does not earn profit in a particular year then equity shareholders will not get any dividend. Thus, the equity share capital is also called as Risk Capital.

Features of Equity shares capital: -

1.       No preferential (special) rights: -Equity share holders get dividend only after the dividend is paid to preference shareholders. Similarly, at the time of winding up of the company, the claim of equity shares is considered at the end.

2.       No fixed rate of dividend: -Company does not commit any fixed rate of dividend on equity shares. The rate of dividend keeps changing from year to year as per company’s financial position. The rate of dividend is recommended by Board of Directors every year and declared by share holders.

3.       Voting Rights: -Every equity shareholder has voting right in the proportion with the shares held by him. They can vote on all the matters placed before the meeting. As per the rights conferred upon the equity shareholders by the companies Act, the voting rights can be exercised either personally or through proxy (only after observing certain rules)

4.       No claim on unpaid dividend: -If a company incurs loss or earns less profit in a particular year then it does not pay any dividend to equity share holders. The equity shareholders cannot claim this dividend in future.

5.       Irredeemable nature: -Company does not repay the money raised through equity shares during its lifetime. This money is repaid only at the time of winding up of the company.

6.       Chances of prosperity (richness): -Equity shareholders are paid dividend at fluctuating rate as per the profits of the company. They claim the entire amount of residual (remaining) of distributable profits. So, if company earns well, the equity shareholders also prosper along with the company.

7.       Privileges (rights): - It is the privilege and right of equity shareholders to have priority in purchasing shares in case of further public issue of shares. It is called as Right Issue. Equity shareholders are also entitled to receive bonus shares which are issued by companies as a gift.


8.       Less face Value : - As compared to preference shares, the equity shares are of less face value like Rs 10/- or even Rs 1/-

PDF FILE TO YOUR EMAIL IMMEDIATELY PURCHASE NOTES & PAPER SOLUTION. @ Rs. 50/- each (GST extra)

HINDI ENTIRE PAPER SOLUTION

MARATHI PAPER SOLUTION

SSC MATHS I PAPER SOLUTION

SSC MATHS II PAPER SOLUTION

SSC SCIENCE I PAPER SOLUTION

SSC SCIENCE II PAPER SOLUTION

SSC ENGLISH PAPER SOLUTION

SSC & HSC ENGLISH WRITING SKILL

HSC ACCOUNTS NOTES

HSC OCM NOTES

HSC ECONOMICS NOTES

HSC SECRETARIAL PRACTICE NOTES

2019 Board Paper Solution

HSC ENGLISH SET A 2019 21st February, 2019

HSC ENGLISH SET B 2019 21st February, 2019

HSC ENGLISH SET C 2019 21st February, 2019

HSC ENGLISH SET D 2019 21st February, 2019

SECRETARIAL PRACTICE (S.P) 2019 25th February, 2019

HSC XII PHYSICS 2019 25th February, 2019

CHEMISTRY XII HSC SOLUTION 27th, February, 2019

OCM PAPER SOLUTION 2019 27th, February, 2019

HSC MATHS PAPER SOLUTION COMMERCE, 2nd March, 2019

HSC MATHS PAPER SOLUTION SCIENCE 2nd, March, 2019

SSC ENGLISH STD 10 5TH MARCH, 2019.

HSC XII ACCOUNTS 2019 6th March, 2019

HSC XII BIOLOGY 2019 6TH March, 2019

HSC XII ECONOMICS 9Th March 2019

SSC Maths I March 2019 Solution 10th Standard11th, March, 2019

SSC MATHS II MARCH 2019 SOLUTION 10TH STD.13th March, 2019

SSC SCIENCE I MARCH 2019 SOLUTION 10TH STD. 15th March, 2019.


SSC SCIENCE II MARCH 2019 SOLUTION 10TH STD. 18th March, 2019.

SSC SOCIAL SCIENCE I MARCH 2019 SOLUTION20th March, 2019

SSC SOCIAL SCIENCE II MARCH 2019 SOLUTION, 22nd March, 2019

XII CBSE - BOARD - MARCH - 2019 ENGLISH - QP + SOLUTIONS, 2nd March, 2019

HSC Maharashtra Board Papers 2020

(Std 12th English Medium)

HSC ECONOMICS MARCH 2020

HSC OCM MARCH 2020

HSC ACCOUNTS MARCH 2020

HSC S.P. MARCH 2020

HSC ENGLISH MARCH 2020

HSC HINDI MARCH 2020

HSC MARATHI MARCH 2020

HSC MATHS MARCH 2020

SSC Maharashtra Board Papers 2020

(Std 10th English Medium)

English MARCH 2020

HindI MARCH 2020

Hindi (Composite) MARCH 2020

Marathi MARCH 2020

Mathematics (Paper 1) MARCH 2020

Mathematics (Paper 2) MARCH 2020

Sanskrit MARCH 2020

Sanskrit (Composite) MARCH 2020

Science (Paper 1) MARCH 2020

Science (Paper 2)

Geography Model Set 1 2020-2021

MUST REMEMBER THINGS on the day of Exam

Are you prepared? for English Grammar in Board Exam.

Paper Presentation In Board Exam

How to Score Good Marks in SSC Board Exams

Tips To Score More Than 90% Marks In 12th Board Exam

How to write English exams?

How to prepare for board exam when less time is left

How to memorise what you learn for board exam

No. 1 Simple Hack, you can try out, in preparing for Board Exam

How to Study for CBSE Class 10 Board Exams Subject Wise Tips?

JEE Main 2020 Registration Process – Exam Pattern & Important Dates


NEET UG 2020 Registration Process Exam Pattern & Important Dates

How can One Prepare for two Competitive Exams at the same time?

8 Proven Tips to Handle Anxiety before Exams!

BUY FROM PLAY STORE

DOWNLOAD OUR APP

HOW TO PURCHASE OUR NOTES?

S.P. Important Questions For Board Exam 2021

O.C.M. Important Questions for Board Exam. 2021

Economics Important Questions for Board Exam 2021

Chemistry Important Question Bank for board exam 2021

Physics – Section I- Important Question Bank for Maharashtra Board HSC Examination

Physics – Section II – Science- Important Question Bank for Maharashtra Board HSC 2021 Examination