banner_ad

Declaration of dividend on preference shares

This query is : Resolved 
Profile Image

Profile Image

(Querist)
03 April 2009 Sir,

If a company has the loss in one financial year but it has retained earnings(profits relating to previous financial years) more than the loss then,

1) Is it compulsory to declare dividend on cumulative preference share capital?

2) Is it compulsory to declare dividend on non-cumulative preference shares?
Profile Image

CA. B.SRINIVASULU

Profile Image

CA. B.SRINIVASULU (Expert)
04 April 2009 It depends on how the retained earnings were reatined.

If you have transfered to general reserve we cannot say it is a reatined earnings.

If you have carried over in p&l account credit balance then after offsetting loss of current year if profits remains you can declare dividend.

It depends on what the policy of the company says.

Beacause the dividend will be declared from current year profits.

If the company wants retain its image it will declare dividend.

Firt dividned to be given to non cumulaive preference shares and remaining can be given to cumulative preference shares.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details