Explanation:

• Option A (Callable): Incorrect. The callable feature allows the company to repurchase shares from investors, but this is irrelevant during liquidation as buybacks are unlikely in such scenarios.

• Option B (Cumulative): Incorrect. The cumulative feature ensures that unpaid dividends on preference shares are paid before common dividends. However, in liquidation, the payment of common dividends is improbable, rendering this characteristic ineffective.

• Option C (Participating): Correct. Among the three characteristics, only the participating feature is directly impacted by liquidation. Participating preference shares may include provisions granting shareholders an additional distribution of the company's assets upon liquidation, surpassing the par value of the shares.

This aligns with the learning objective of understanding voting rights and other ownership characteristics among different equity classes.