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minimum rate of dividend on preference shares

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CA MALLIKARJUN

CA MALLIKARJUN (Querist)
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24 November 2010 can we issue preference shares carrying dividend rate less than prime lending rate of bank.

taxindiaconnect

taxindiaconnect (Expert)
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24 November 2010 yes.

CA MALLIKARJUN

CA MALLIKARJUN (Querist)
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24 November 2010 can u suggest minimum rate

taxindiaconnect

taxindiaconnect (Expert)
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24 November 2010 it depends on various factors and there are certain type of pre cap where minimum Rs 1 can be dividend on entire holding. Ask some company Seceretary.

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