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Outline rights of preference shareholders.

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  • Receive dividends regardless of how much profits are made.
  • Receive a fixed rate of return/dividend.
  • They are paid first/enjoy preferential rights to dividends.
  • They have a preferred claim on company assets in the event of bankruptcy/ liquidation of the company.
  • Receive interim and annual reports.
  • They only have voting rights at the AGM under particular circumstances/for certain resolutions.
  • Cumulative shareholders must receive outstanding/accrued dividends from previous years.
  • Participating preference shareholders have the right to share in surplus profits
answered by Master (629k points)