- This topic has 1 reply, 2 voices, and was last updated 9 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
Interactive BPP books for September 2026 exams, recommended by OpenTuition.
Get discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › preference shares
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?
Preference shareholders come before ordinary shareholders if the company goes into liquidation.
