Preference shareholders Right

Preference shares section 85 explains fully about it. Preference shareholders have a precedence over the ordinary shareholders, but next to debenture holders for the payment of dividends and return on capital if the issuing company goes under liquidation. Preference shareholders are entitled toa fixed rate of dividend, but participating preference shareholders also are entitled to a share in the residual profits. These shareholders carry limited voting rights and may be redeemable or therwise.