Different types of Preference Shares.

The types of Preference Shares are:

1) Cumulative Preference Shares: These shares are entitled to dividend at a fixed rate whether there are profits or not. The company pays dividend if it has sufficient profits. In case the company does not have sufficient profits, dividend on cumulative preference shares will go on accumulating till it is fully paid off. Such
arrears are carried forward to the next year and are actually paid out of the subsequent years profits. All preference shares are presumed to be cumulative unless expressly stated in the articles to be non-cumulative.

2) Non-cumulative Preference Shares: Non-cumulative Preference Shares are those on which the arrears of dividend do not accumulate. If in a particular year there are no profits or profits are inadequate, the shareholders shall not get anything or receive a partial dividend and they cannot claim the arrears of dividends in the subsequent year.

3) Participating Preference Shares: The holders of such shares are entitled to receive dividend at a fixed rate and in addition, they have a right to participate in the surplus profits along with equity shareholders after dividend at a certain rate has been paid to equity shareholders. In the event of winding up, if after paying back both the preference and equity shareholders, there are surplus assets, then the holders of such shares shall be entitled to share in the surplus assets as well.

4) Non-Participating Preference Shares: The holders of such shares are entitled to only a fixed rate of dividend and do not participate further in the surplus profits. If the articles are silent, all preference shares are deemed to be nonparticipating.

5) Convertible Preference Shares: The holders of such shares have a right to convert these shares into equity shares within a certain period. 

6) Non-convertible Preference Shares: The preference shares where the holders have no right to convert their shares into equity shares are known as nonconvertible preference shares. Unless otherwise stated preference shares are assumed to be non-convertible.

7) Redeemable Preference Shares: Ordinarily, the amount received by the company on shares is not returned except on the winding up of the company. A company limited by shares, if authorized by its article may issue preference shares which are to be redeemed or repaid after a certain fixed period. Thus, the amount received on such shares can be returned during the life-time of the company. Such shares are termed as ‘redeemable preference shares’.

Objectives of statutory meeting as per companies Act  Under what circumstances membership of a company can be cancelled?

Objectives of statutory meeting as per companies Act.

Under what circumstances membership of a company can be cancelled?

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