Section 51 - Preference and equity shares

(1) In this Act, “preference share” means a share, which does not entitle the holder of the share to a right to participate beyond a specified amount of money in a distribution whether by way of dividend, on redemption, in a winding up, or otherwise; and any other share shall be referred to as an “equity share”.

(2) A share that is not a preference share shall be referred to as an “equity share”.

(3) The meaning of “preference share” under subsection (1) shall apply to whatever name a company may designate in its constitution.