Companies Act, 1973 (Act No. 61 of 1973)Chapter VII: Administration of CompaniesVoting Rights and Voting194. Voting rights of preference shareholders |
| 1) | Notwithstanding the provisions of section 193(1), the articles of a company may provide that preference shares shall not confer the right to vote at meetings of the company except-- |
| a) | during any period determined as provided in subsection (2) during which any dividend or any part of any dividend on such shares or any redemption payment thereon remains in arrear and unpaid; or |
| b) | in regard to any resolution proposed which directly affects any of the rights attached to such shares or the interests of the holders thereof, including a resolution for the winding-up of the company or for the reduction of its capital. |
| 2) | The period referred to in subsection (1) (a) shall be a period commencing on a day specified in the articles of the company concerned, not being more than six months after the due date of the dividend or redemption payment in question, or, where no due date is specified, after the end of the financial year of the company in respect of which such dividend accrued or such redemption payment became due. |