Features of equity shares:1)Permanent Capital: The equity share capital representspermanent capital of the company. There is noobligation on the part of the company to pay the capitalduring the life time of the company. The equity sharesare irredeemable. The shareholders may get their fundsback on the winding up of the company. 2)Risk to capital: there is no guarantee of return ofcapital, in the case of winding up of the company. Equity shareholders have a residual claim {last cla im}on the winding up of the compa ny. There are chances, the equity shareholders may not get back their in itialcapital invested in the company. Therefore, the equit ycapital is called risk capital or venture capital. 3)Fluctuating dividend: There is no guarantee ofminimum dividend. The rate of dividend depends uponthe earnings of the company. If the company makesgood profit, then the equity shareholders will get gooddividend. If the company makes low profit or loss, thenthe equity shareholders may not get any d ividend. 4)Voting rights: the equity shareholders enjoy normalvoting rights. They can vote on all resolutions passed at
