Difference between preference shares and ordinary shares.

1. PSH has priority of dividend, it is fixed in A/A; OSH dividend is fixed by board of directors.

2. PSH has priority of repayment of capital over OSH.

3. PSH has no voting rights; OSH has voting rights.

4. PSH cannot participate in the distribution of surplus of assets when company is wound up; OSH can.

5. PS carry greater liability and advantageous in terms of financial return.