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Question
Which of the following are the features of equity shares?
Options
It is a divisible part of the capital of a company.
It confers voting rights on its holder.
It creates certain liabilities on its holder.
Each share have some common number.
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Solution
It confers voting rights on its holder and it creates certain liabilities on its holder.
Explanation:
The following are the features of an equity share:
- It is an indivisible part of the capital of a company.
- It confers certain rights on its holder, e.g. dividend, voting power, return of capital, etc.
- It creates certain liabilities for its holder.
- Each share has a distinct number.
- Each share has a nominal or face value.
- The holder of a share is issued a share certificate under the seal of the company.
- It is a movable property and can be transferred in the manner laid down in the Articles of the Company.
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