Preference share holder

Whether a preference share holder entitled to receive notice of an Annual General Meeting?

Section 172(2) of the Companies Act, 1956 the notice of Annual General Meeting of a company shall be given to every member of the company.  Section 85 of the Act speaks about two kinds of share capital in a company, viz. preference share capital and equity share capital. Section 41 which defines a member in company does not speak about preference share holders. But through Section 87 voting rights are given to preference share holders in matters affecting their rights. This Section provides preference share holders the position of member in a company. Section 150 provides that every company having share capital should maintain a register of members. Since Section 86 says share capital of the company shall be of two kinds,viz. preference and equity. Hence the names of preference share holders also need to be entered in the Register of Members.

So the preference share holder has the right to receive notice of Annual General Meeting.