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Equity shareholder enjoys preferential rights. 

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State, whether the following statements is True or False. 

Equity shareholder enjoys preferential rights. 

Options 

  • True 
  • False
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1 Answer

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Best answer

False 

Explanation: Equity shareholders have voting rights. However, it is the preference shareholders who enjoy preferential rights regarding dividend distribution and repayment of capital at the time of liquidation or in the event of winding up of a company.

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Equity shareholder enjoys preferential rights.
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