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## With Voting Rights: Section 87 of the Act states: - Every member of a company limited by shares and holding any equity share capital shall have a right to vote on every resolution placed before the company at any general meeting. - Voting right on a poll shall be in proportion to his share of t...

## With Voting Rights: Section 87 of the Act states: - Every member of a company limited by shares and holding any equity share capital shall have a right to vote on every resolution placed before the company at any general meeting. - Voting right on a poll shall be in proportion to his share of the paid up equity capital of the company. ## With Differential Rights As per Companies Amendment Act 2000, a company limited by shares can issue equity shares with differential rights. The differential rights are in respect of dividend, voting or otherwise in accordance with the Companies Rules, 2001. The central government has prescribed the Companies Rules, 2001 relating to issue of share capital with Differential Rights. The rules state that a company limited by shares may issue equity shares with differential rights with respect to dividend or voting under the following conditions: - Such shares can be issued upto 25% of the issued share capital. - The company should have distributable profits for three financial years prior to the issue of such shares. - The company has not defaulted in repayment of deposits or debentures on the maturity. - The company has not defaulted in filing annual returns during the three preceding years. - The company has not defaulted in addressing investors grievances. - The company has not been convicted of any offence under: - Securities and Exchange Board of India (SEBI) Act, 1992.