Convertible vs Non-Convertible Preference Shares

Non-redeemable preference shares cannot be redeemed during the lifetime of the company, but can only be obtained at the time of winding up (liquidation) of assets.

Participating preference shares have the right to participate in any additional profits, after paying the equity shareholders. The surplus of profit is apart from the fixed dividend paid up for preference shares.

Non-participating preference shares do not possess any right to participate in surplus profits or any surplus gained at the time of liquidation of the company.