Shareholder rights
Yes, preference shareholders are considered members of a private limited company in India. However, Shareholder rights and privileges may be different from those of equity shareholders. Preference shareholders entitles to a fixed rate of dividend, which pay to them before any dividend paid to equity shareholders. They also have priority over equity shareholders in case the company is liquidated, and their preference shares are redeemed at a premium. However, preference shareholders do not have voting rights in the company, unless the company’s Articles of Association specifically provide for it.