Equity shareholders:
Every member of a company, limited by shares, and holding equity share capital therein shall have a right to vote, in respect of such capital, on every resolution placed before the company.
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His voting right on a poll shall be in proportion to his share of the paid up equity capital of the company. [Sec. 87 (1)]
Preference shareholders:
ADVERTISEMENTS:
Company law does not give any right to preference shareholders, to vote on any resolution except those which directly affect the rights attached to their shareholdings.
In this connection, any resolution for the winding up of the company or for the repayment of reduction of its share capital shall be deemed to affect the rights of the preference shareholders directly.
However, if the dividends are in arrears:
(a) A holder of cumulative preference shares has a right to vote on all resolutions of the company at any meeting if his dividends are in arrear for an aggregate period of not less than two years on the date of the meeting;
ADVERTISEMENTS:
(b) A holder of non-cumulative preference shares has a right to vote on all resolutions of the company if his dividends are in arrear for two financial years immediately preceding the meeting or for any three years during a period of six years ending with the financial year preceding the meeting. [Sec. 87 (2) (?)]
In case of voting by poll, the right of the preference shareholders to vote shall be in the proportion in which the preference capital paid up bears to the total paid up equity capital of the company.