Is a person,holding preference share in a company,deemed to be a member of that company?
HIMANSHU RANA (C.A.T / B.COM & CA STUDENT) (259 Points)
27 April 2010Is a person,holding preference share in a company,deemed to be a member of that company?
Ashish M
(Chartered Accountant)
(2731 Points)
Replied 27 April 2010
Dear Himanshu,
1) Preference shaeholders are also members of the company within the meaning of Sec.41 of Companies Act, irrespective of fact whether they have voting rights on certain issues or not.
2) In the format of annual return we have to give total number of members. Since preference shareholders are also members, their number will also be included here.
3) Sec.172(2) requires notice of general meetings to be sent to every member, which includes preference shareholders. .
Thanks
Master GSTR-9 and 9C with India's First Unique Live Course with Live practical training
CAclubindia
