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CONSOLIDATED AND SEPARATE FINANCIAL  STATEMENTS

            Preference Shares



            • What are preference shares?


                    • Preferential right to profit

                    • Right to dividend is limited

                           • Usually % of face value e.g. 20% R4 preference shares

                    • No voting rights unless dividend not declared - protective rights

            • Preference shares may be


                    • Cumulative or non-cumulative

                    • Redeemable or non-redeemable

                    • Equity or liability

            • If company wants to declare ordinary dividends


                    • Must first declare preference dividends

            • Ordinary shareholders


                    • No preferential right - residual right

                    • Can receive unlimited dividends

                    • Always have voting rights
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