Under which section of the Companies Act, 2013 is' Equity shares' defined?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- Sec 43.
Under Sec 43 of the Companies Act, 2013 ' Equity shares' are defined.
According to Section 43 of The Companies Act, 2013, an equity share is a share which is not a preference share. In other words, shares which do not enjoy any preferential right in the payment of dividend or repayment of capital, are termed as equity/ordinary shares. The equity shareholders are entitled to share the distributable profits of the company after satisfying the dividend rights of the preference shareholders.