banner_ad

waiver of Dividend of preference share

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
25 May 2010 A company issue cumulative redeemable preference share and after some years by proper processing made the changes in the term of issue to non cumulative preference share and extend the period of maturity. Matter has already been filed with ROC. So due to inadequacy of profit company is not able to pay out the cumulative dividend to preference share holder. Can company waive the accumulated dividend & right to claim such dividend after getting a consent letter from Preference share holder? if yes please mention the process.The said company is private limited company
Profile Image

Rasesh

Profile Image

Rasesh (Expert)
26 May 2010 If the preference shareholder waives the accmulated unpaid dividend by way of a board resolution, then it is possible. The company issuing the preference shareholder can take note of the same and reflect it accordingly in their books of accounts. Accumulated Unpaid Dividend is shown in contingent liabilities and this amount would get reduced to the extent of the dividend waived.
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
10 May 2026
Finance specialist

Right way solution

Ajmer

CA

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details