6. Voting rights 0 Preferred share does not ordinarily carry voting rights. Special voting procedures may take effect if the issuing rm omits its preferred dividends for a specic time period. 0 Preferred shareholders are then permitted to elect a certain number of members to the board of directors in order to represent the preferred shareholder' interests. 7. Pm'tiapatingfeatures o Participating preferred share entitles its holders to share in prots above and beyond the declared dividend, along with ordinary (common) equity shareholders. 0 Most preferred share issues are nonparticipating. Without non participated preferred, the return is limited to the stipulated dividend. 8. Protective features 0 Preferred share issues often contain covenants to assure the regular payment of preferred share dividends and to improve the quality of preferred share. 0 For example, covenants may restrict the amount of common share cash dividends, specify minimum working-capital levels. and limit the sale of securities senior to preferred share. 0 Preferred shareholders have priority over ordinary (common) equity shareholders with regard to earnings and assets. 9. Cali tIgi'rrlrisiori o A call provision gives the issuing corporation the right to call in the preferred share for redemption. As in the case of bonds, call provisions generally state that the company must pay an amount greater than the par value of the preferred share, the additional sum being termed a call premium. 0 For example, Wat/Corporation's 12 percent, P100 par value preferred share, issued in 2005, is noncallable for 10 years, but it may be called at a price of P1 12 after 2015. 10. Maturity 0 Three decades ago, most preferred share was perpetual it had no maturity and never needed to be paid off. However, today most new preferred share has a sinking nd and thus an effective maturity date