Question
Question 2 Preference shareholders can vote to appoint the company's directors. True False
Answer
4.6
(249 Votes)
William
Elite · Tutor for 8 years
Answer
False
Explanation
## Step 1:A company's stockholders fall into two main types —ordinary shareholders (or equity shareholders) and preference shareholders. Both these types differ based on the perks they enjoy.## Step 2:Preference shareholders have higher claims on dividends and a company’s assets if it's liquidated. In exchange for these higher claims, preference shareholders typically make some restrictions or compromises. One such limitation is their voting rights.## Step 3:Preference shareholders don't averagely get the right to vote at the company's general meetings or for the election of company directors. These voting rights are preserved for the regular shareholders.