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6. Change in the rate of preference dividend payable in future without any change in the amount of capital is known as (a) Reduction of Share Capital (b) Alteration of Share Capital (c) Variation of Shareholders’ Rights (d) Compromise/ Arrangement?
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6. Change in the rate of preference dividend payable in future without...
The correct answer is (c) Variation of Shareholders’ Rights.
Explanation:
Variation of Shareholders’ Rights refers to any change made to the rights attached to the shares held by the shareholders of a company. This change can be made in the rate of preference dividend payable in the future without any change in the amount of capital.
Here is a detailed explanation of the other options:
(a) Reduction of Share Capital: Reduction of share capital refers to the process of decreasing the nominal value of a company's shares. This can be done by either canceling or extinguishing any paid-up share capital that is lost or unrepresented by available assets.
(b) Alteration of Share Capital: Alteration of share capital refers to any change made to the structure of a company's share capital. This can include increasing or decreasing the authorized share capital, changing the nominal value of shares, or converting one type of share into another.
(d) Compromise/ Arrangement: A compromise or arrangement refers to a legal process where a company reaches an agreement with its creditors or shareholders to restructure its debts or shareholding structure. This can involve altering the terms of debt repayment, exchanging debt for equity, or merging with another company.
In conclusion, the correct answer to the question is (c) Variation of Shareholders’ Rights, as it specifically refers to changes in the rate of preference dividend payable in the future without any change in the amount of capital.
Explanation:
Variation of Shareholders’ Rights refers to any change made to the rights attached to the shares held by the shareholders of a company. This change can be made in the rate of preference dividend payable in the future without any change in the amount of capital.
Here is a detailed explanation of the other options:
(a) Reduction of Share Capital: Reduction of share capital refers to the process of decreasing the nominal value of a company's shares. This can be done by either canceling or extinguishing any paid-up share capital that is lost or unrepresented by available assets.
(b) Alteration of Share Capital: Alteration of share capital refers to any change made to the structure of a company's share capital. This can include increasing or decreasing the authorized share capital, changing the nominal value of shares, or converting one type of share into another.
(d) Compromise/ Arrangement: A compromise or arrangement refers to a legal process where a company reaches an agreement with its creditors or shareholders to restructure its debts or shareholding structure. This can involve altering the terms of debt repayment, exchanging debt for equity, or merging with another company.
In conclusion, the correct answer to the question is (c) Variation of Shareholders’ Rights, as it specifically refers to changes in the rate of preference dividend payable in the future without any change in the amount of capital.
Community Answer
6. Change in the rate of preference dividend payable in future without...
3) variation of shareholders' rights
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6. Change in the rate of preference dividend payable in future without any change in the amount of capital is known as (a) Reduction of Share Capital (b) Alteration of Share Capital (c) Variation of Shareholders’ Rights (d) Compromise/ Arrangement?
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6. Change in the rate of preference dividend payable in future without any change in the amount of capital is known as (a) Reduction of Share Capital (b) Alteration of Share Capital (c) Variation of Shareholders’ Rights (d) Compromise/ Arrangement? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about 6. Change in the rate of preference dividend payable in future without any change in the amount of capital is known as (a) Reduction of Share Capital (b) Alteration of Share Capital (c) Variation of Shareholders’ Rights (d) Compromise/ Arrangement? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 6. Change in the rate of preference dividend payable in future without any change in the amount of capital is known as (a) Reduction of Share Capital (b) Alteration of Share Capital (c) Variation of Shareholders’ Rights (d) Compromise/ Arrangement?.
6. Change in the rate of preference dividend payable in future without any change in the amount of capital is known as (a) Reduction of Share Capital (b) Alteration of Share Capital (c) Variation of Shareholders’ Rights (d) Compromise/ Arrangement? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about 6. Change in the rate of preference dividend payable in future without any change in the amount of capital is known as (a) Reduction of Share Capital (b) Alteration of Share Capital (c) Variation of Shareholders’ Rights (d) Compromise/ Arrangement? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 6. Change in the rate of preference dividend payable in future without any change in the amount of capital is known as (a) Reduction of Share Capital (b) Alteration of Share Capital (c) Variation of Shareholders’ Rights (d) Compromise/ Arrangement?.
Solutions for 6. Change in the rate of preference dividend payable in future without any change in the amount of capital is known as (a) Reduction of Share Capital (b) Alteration of Share Capital (c) Variation of Shareholders’ Rights (d) Compromise/ Arrangement? in English & in Hindi are available as part of our courses for B Com.
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