Question on: JAMB Commerce - 2024
In the event of winding up of a company, who among the following is paid last?
A
Preference Shareholders
B
Ordinary shareholders
C
Cumulative preference shareholders
D
Debenture holders
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Correct Option: B
In the winding up of a company, the order of payment is as follows (from first to last):1. Secured creditors2. Unsecured creditors (including debenture holders)3. Preference shareholders4. Ordinary shareholdersOrdinary shareholders are paid last because they represent the residual ownership of the company, and receive what is left after all other claims are settled.
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