Preferential shares (or preference shares) are a class of equity that grants holders a fixed dividend—paid before any dividend is declared to ordinary equity shareholders—and priority over ordinary shareholders in the event of a company's liquidation. In exchange for this preferential treatment, preference shareholders typically do not have voting rights. Preference shares can be cumulative (unpaid dividends accumulate and must be cleared before equity dividends) or non-cumulative. In India, companies issue preference shares as a fundraising tool, and they are governed by the Companies Act, 2013, and SEBI regulations for listed entities.
For android only
