WAEC Financial Accounting 2007 Question 46

Question 46

Company Accounts

Holders of ordinary shares do not have the right to

  1. A.participate in additional issue of shares
  2. B.vote at annual general meetings
  3. C.elect the board of directors
  4. D.receive dividends at a predetermined rate
Show the answer and explanation

Answer: D (receive dividends at a predetermined rate)

Explanation

A fixed dividend rate belongs to preference shares.