In context with the companies in India, who among the following is also known as “Residual Owner”?
Equity is an instrument for its owner for share in profits (and losses). Equity shares are instruments issued by companies to raise capital and it represents the title to the ownership of a company. If the company fails or gets liquidated otherwise, the claim of equity shareholders on earnings and on assets in the event of liquidation, follows all others. Similarly, the dividend on equity shares is paid after meeting interest obligations and dividends to Preference shareholders. That is why the holders of the Equity shares are also known as ‘residual owners’
This question is a part of GKToday's Integrated IAS General Studies Module