1. Voting Rights

• Equity Shares: Carry voting rights on all company matters and allow shareholders to participate in key decisions at general meetings.
  
• Preference Shares: Usually do not carry voting rights, except in limited situations like when dividend payments are in arrears or decisions affect their rights directly.
  

2. Dividend Entitlement

• Equity Shares: Receive dividends only after preference shareholders are paid, and the rate is not fixed—it depends on profits and board decisions.
  
• Preference Shares: Get a fixed dividend and are given priority over equity shareholders in the distribution of profits.
  

3. Repayment Priority

• Equity Shares: In case of winding up, equity shareholders are paid last, after all debts and preference shareholders are settled.
  
• Preference Shares: Have preferential rights over equity shareholders in repayment of capital during liquidation.
  

4. Capital Structure Role

• Equity Shares: Form the core ownership of the company and influence control and decision-making.
  
• Preference Shares: Are more like a hybrid of debt and equity, offering fixed income but limited control.
  

5. Convertibility and Redemption

• Equity Shares: Are non-redeemable and remain until the company is dissolved or bought back under law.
  
• Preference Shares: Can be redeemable or convertible into equity after a specified period, based on terms of issue.