Page 38 - PowerPoint Presentation
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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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