MCA1 min read
Preference Shares
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.
Last updated: 17 May 2026
Frequently Asked Questions (FAQs)🔗
Q1. 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.
Q2. 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.
Q3. 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 Updates🔗
Read our latest analysis and critical updates on corporate circulars related to MCA:
Form DIR-12 Complete Guide: Director & KMP Appointment, Cessation & Designation Filing Under Companies Act 2013
Published: 29 June 2026
MCA Data Centre Fire & Complete Relief Package — DPT-3, Name Reservation & CCFS-2026 (June 2026
Published: 28 June 2026
MCA CCFS-2026: Companies Compliance Facilitation Scheme — File Pending Annual Returns at 10% Additional Fees by July 15, 2026
Published: 28 June 2026