Preference shares

This query is : Resolved

Share Report Follow Query Ask a Query

Guest

Guest (Querist)

16 December 2010 hii to all,

can a dividend declared be waived off on preference shares???

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
Follow

16 December 2010 Yes,For eg. In Case of Liquidation of Company/ Capital Restructure.

Guest

Guest (Querist)

16 December 2010 other that that?

CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)
Follow

16 December 2010
As far i think dividend declare once cant't be waived coz once dividend declare become the liability for the company and it need to paid off ,
As Mr Ayush mentioned that it can be in the case of liquidation and reconstruction but that is not dividend in the real since it is final payment that a shareholder will get in the case of closer of the company .
Thanks

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
Follow

16 December 2010 Yes, if Company During its Life Time Can't Waive Off Dividend Declared Once.

Only at Time of Winding Up or Restructuring of Company

Ankur Garg

Ankur Garg (Expert)
Follow

16 December 2010 Agree with the above replies...can not be waived...

udit sharma

udit sharma (Expert)
Follow

17 December 2010 Hi...

Agreed with the experts...dividend once declared becomes debt of the company and its payment cantbe waived...

God Bless

Udit Sharma

Guest

Guest (Querist)

17 December 2010 CAN WE REDUCE THE % OF DIVIDEND?

Jayashree S Iyer

Jayashree S Iyer (Expert)
Follow

18 December 2010 The shareholders have the right to reduce the % of dividend recommended by the board at the GM. However if the dividend is approved in the GM and declared then it cannot be reduced for the same reason that once the dividend is declared it becomes a debt of the company.

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

Ravikumar

DILIP

Vignesh Killur

Amit

Subbiah S

Subscribe Now

Preference shares

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

GST CONSULTANCY

Accountant

Senior Executive

CA Final

Manager- Finance and Compliance