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<h1>Understanding Share Capital: Distinguishing Equity and Preference Shares with Voting and Dividend Rights Explained</h1> The share capital of a company limited by shares is categorized into equity share capital and preference share capital. Equity share capital may include shares with voting rights or differential rights regarding dividends and voting. Preference share capital involves shares with preferential rights concerning dividend payments and capital repayment during winding up. Preference capital retains its status even if it has additional rights to participate with non-preferential capital in dividends or surplus after capital repayment. The Act ensures that the rights of preference shareholders existing before its commencement remain unaffected.