Explanation:
(i)Distinction between shares and debentures / ordinary shareholders and preference shareholders

Shareholders	Debentures holders
Holders are owners of a company	Holders are creditors to a company
shareholders are paid dividend	Debenture holders are paid interest
Holders have voting rights	Holders have no voting rights
Holders receive their dividend after claims of debenture holders have been paid	Holders receive their claims
share have no fixed rate of dividend	Holders received fixed rates of interest
Ordinary shares	Preference shares
Holders receive fluctuating rate of dividend	Holders receive fixed rate of dividend
Dividends are paid only if profits are made	Dividends are paid whether or not profits are made
Receive dividends after preference shareholders are paid	First to receive dividend
Ordinary shares have voting rights	preference shares have restricted voting rights
ordinary shares are not redeemable	preference shares are redeemable

(b) Reasons for winding up a company:
(i) If the company passes a resolution to wind up.
(ii) If the company fails to commence business within a year after its incorporation.
(iii) If the number of shareholders falls below the statutory level.
(iv) If the company is insolvent.
(v) If the creditors decide to apply for dissolution.
(vi) Continuous disagreement between the directors over the management of the company.
(vii) A company can be wound up by the order of a court.
(viii) If the company's objective becomes illegal.
(ix) If the company cannot meet up with the capital requirement for the line of business.