Voting rights of share capital

Voting rights

Equity share holder's rights:

An equity share holder of a company limited by shares has a right to vote on every resolution placed before it. his voting right on a poll is in proportion to his share of the paid up equity capital of a company.

Preference shareholder's rights:

A Preference shareholder has aright to vote on those resolutions which directly affect his rights.any resolution for winding up the company or for the repayment or reduction of its shares is deemed directly to affect the rights for the preference share holders.

Application and allotment of shares:

An application for shares is an offer by a prospective shareholders of a company to take shares."allotment" is the acceptence by the company of that offer. allotment results in a binding contract between the company and the applicant.

The company may be the following provisions of the act are applicable to 'application' for,and allotment of, shares:

1.Minimum subscription.

2.Application money.

3.Effect of irregular allotment.

4.Opening of the subscription.

5.Shares and debentures listed.

6.Return as to allotments.