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Which of the following is NORMALLY a right of preference shares?
1 They carry full voting rights at company meetings
2 They carry a right to attend company meetings
3 They carry a ‘fixed’ right to dividend that is cumulative
A 1 and 2
B 1 and 3
C 2 and 3
D 3 onlyCan pref shareholders attend company meetings? And what about AGM?
Yes, preference shareholders typically have the right to attend company meetings and to participate at those meetings. Their rights may be restricted by the company’s constitution.
Clearly ‘They carry full voting rights at company meetings’ is incorrect so that narrows your options down to C or D. Now that means you only need consider point number 2 – the right to attend company meetings. Yes or No?
My answer to this question would be option C
OK?
Yes, preference shareholders typically have the right to attend company meetings and to participate at those meetings. Their rights may be restricted by the company’s constitution.
Clearly ‘They carry full voting rights at company meetings’ is incorrect so that narrows your options down to C or D. Now that means you only need consider point number 2 – the right to attend company meetings. Yes or No?
My answer to this question would be option C
OK?
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