CA Inter P2 · Chapter 4 · Question 2 of 11
Under section 47(2), preference shareholders of a class become entitled to vote on every resolution placed before the company when the dividend on that class has remained unpaid for a period of:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Two years or more
Explanation
Normally, under section 47(2), preference shareholders vote only on resolutions that directly affect their rights, such as winding up or the repayment or reduction of capital. If dividend on a class of preference shares has not been paid for two years or more, that class may vote on all resolutions.
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