Payment of dividend to preference shareholder

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Arun Kumar (Querist)

21 September 2011 Whether payment of dividend to Preference shareholder is must.
Under which section of Companies Act it is mentioned if it is must

Please tell me

Thanks in advance

Arun Kumar

Arun Kumar (Querist)

21 September 2011 If compulsorily convertible debenture issued to directors of Company are converted into equity shares, whether is this ESOP or Section 81 of Companies Act shall apply?

Arun Kumar

Arun Kumar (Querist)

21 September 2011 How can i see the reply, i got a mail in responce of my query wherein it is written that "to see reply click here" when i click there & login, nothing appeared
should i upgrade my account

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

09 August 2024 Dividend payment to preference shareholders is mandatory under the Companies Act, 2013 (India). The Act defines different types of shares, outlines the declaration of dividends, and addresses unpaid or unclaimed dividends. Companies must follow the terms of preference shares and comply with statutory provisions for dividend payments. Employee Stock Option Plans (ESOPs) are schemes where employees can purchase shares at a predetermined price. If CCDs issued to directors are converted into equity shares, they are not classified as ESOP unless part of an ESOP scheme. Sections 81 and 62 of the Companies Act, 2013 apply to the further issue of share capital, including the conversion of debentures into shares. If you encounter issues viewing mail replies, check spam, try different browsers, access issues, contact technical support, or upgrade your account. For detailed guidance and updates, consult the official Companies Act, 2013 and relevant legal or financial advisors.

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