02-09-2007, 08:48 PM
Ok take this example
A person has cumulative preference shares, which carry voting rights lesser than the ordinary shares. Say, for every 3 preference shares, he has got voting option of 2 ordinary shares. Now this person holds 10,000 preference shares. So he has the voting right of 6,666.66 shares. Now he will be able to poll only 6,666 votes and 0.66 votes will not be considered.
This is the example with reference to voting. Fractional shares may also arise when assessing the right to bonus shares or right issue of shares...
A person has cumulative preference shares, which carry voting rights lesser than the ordinary shares. Say, for every 3 preference shares, he has got voting option of 2 ordinary shares. Now this person holds 10,000 preference shares. So he has the voting right of 6,666.66 shares. Now he will be able to poll only 6,666 votes and 0.66 votes will not be considered.
This is the example with reference to voting. Fractional shares may also arise when assessing the right to bonus shares or right issue of shares...
