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Chapter 4 Share capital and debentures

Corporate & Other Laws

In preference share capital definition , there is a sentence "equity pool post the preferential entitlements " , what it means?

Mehak K

CA Inter

★ 2K+

02-Dec-22 01:04

411

Answers (2)

Best Answer

The number of shares a company sets aside or reserves from which it may grant stock options or restricted stock is known as the "equity pool." As a result, even after the preferential entitlement only, the shareholder will receive the equity pool, and the preference holder will receive priority over the others by exercising their preferential entitlement first.