Which share type is described as special, not always available, paid before ordinary shares, and has no voting rights?

• A. Preference shares
• B. Ordinary shares
• C. Deferred shares
• D. Non-voting shares

Answer: (A)

The key idea is how preference shares behave. Preference shares give holders a fixed dividend and have priority over ordinary shares for both dividend payments and in liquidation. They are often described as special and not always issued, since companies use them selectively. They also typically carry no voting rights (or limited voting rights), which helps preserve control for ordinary shareholders. Because dividends are paid before ordinary shares, this matches the description given in the question. Ordinary shares come with voting rights and dividends only after preference dividends, so they don’t fit the “paid before ordinary shares” and “no voting rights” criteria. Deferred shares and non-voting shares don’t inherently guarantee priority for dividends or the same voting-rights pattern described here. Thus, the description points to preference shares.