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preference shares

AAamir9y ago
Dear John, According to lecture notes, "....preference shares are not secured against company's assets." What if a company goes into liquidation, all its creditors have been settled, then what happens to the remaining assets? Do they go straight to the equity share holders or do the prefernece share holders (both cummulative & not cummulative) have right to claim their dividend out of proceeds from sale of these assets?
John MoffatJohn MoffatTutor9y ago#1
Preference shareholders come before ordinary shareholders if the company goes into liquidation.
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