Explanation:

Cumulative preference shares: A preference share is said to be cumulative when the arrears of dividend are cumulative and such arrears are paid before paying any dividend to equity shareholders.

Non-participating preference shares: Non- participating preference shares are entitled only to a fixed rate of dividend and do not share in the surplus profits. The preference shares are presumed to be non-participating, unless expressly provided in the memorandum or the articles or the terms of issue.

Non-Convertible preference shares: These are those shares which do not carry the right of conversion into equity shares.