Statutory Meaning & Definition
Shares that carry preferential rights over equity shares in payment of dividend and repayment of capital upon winding up under Section 43 of Companies Act 2013. Can be cumulative or non-cumulative, convertible or non-convertible.
Frequently Asked Questions (FAQs)
What is Preference Shares in Indian corporate law?
Shares that carry preferential rights over equity shares in payment of dividend and repayment of capital upon winding up under Section 43 of Companies Act 2013. Can be cumulative or non-cumulative, convertible or non-convertible.
Why is Preference Shares important for compliance?
Preference Shares is governed by the Ministry of Corporate Affairs under the Companies Act, 2013. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Who should know about Preference Shares?
Preference Shares is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with MCA regulatory matters in India.
Contextual Analysis & Regulatory Circulars
Recent analysis and regulatory updates related to MCA:
MCA Overseas Listing Amendment Rules 2026 (G.S.R. 968(E)): Equity Instruments, IFSC Companies and the 75% QIB Route
Published: 5 November 2026
INC-20A Declaration for Commencement of Business: 180-Day Due Date, Fees, Penalty & MCA V3 Filing Guide
Published: 4 November 2026
MSME Form I Half-Yearly Return: Due Dates, Applicability, Section 405(4) Penalty & MCA V3 Filing Steps
Published: 2 November 2026
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