Ans. This statement is
True.
1. Equity shareholders
are the joint owners of the company. They have ownership rights in the company.
They have the right to participate in the management of the company.
2. Since, equity shareholders
accept the business risks in real sense, they are the real owners of the
company.
3. The control of the company
is vested in equity shareholders. This is because they have exclusive voting
rights.
4. Equity share holders
do not have special preferential rights either as to dividend and return of
capital in the event of winding – op of the company. They have the risky of
having nothing or have the chances of earning attractive dividend at an
increasing rate.
