dividend on preferance shares

This query is : Resolved

Pavan Kumar.S (Querist)
Follow

25 June 2010
hi all,

In the current year, a company has incurred loss. It has to pay preferance dividends. Can it use its earlier profits/reserves. If so will the ( Companies (Declaration of Dividend out of Reserves) Rules, 1975) apply to it.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

25 June 2010 Preference dividend can be paid out of free reserves. The Companies (Declaration of Dividend out of Reserves)Rules,1975 apply only to equity dividend and to that portion of dividend relating to participating preference shares which is excess of the fixed rate of preference dividend.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

ASHOK B GONDKAR

rana andcompany

Raj Jaggi

SHRI HARIRAO

Raviraj ponkshe

Subscribe Now

dividend on preferance shares

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Manager- Finance and Compliance

GST CONSULTANCY

Senior Executive

Accountant

GST CONSULTANT

CA Final