Accountancy Part AAccounting for Shares

According to _______ of the Companies Act, 2013, an equity share is a…

According to _______ of the Companies Act, 2013, an equity share is a share which is not a preference share.

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Section 43

NCERT (2026-27 edition):
Nature and Classes of Shares – “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.”