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Chapter 8
Types of shares
Preference shares Ordinary shares (equity)
Voting rights None, or restricted. Full.
Dividend Fixed dividend normally paid in Paid after preference
rights priority to other dividends, usually dividend. Not fixed.
cumulative.
Surplus on If issued with preferential rights to Entitled to share surplus
winding up return of capital will have the right assets after repayment of
to be repaid their capital first, but preference shares.
cannot participate in any surplus.
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