Cummulative Preference Dividend

In case of  cumulative preference shares, the dividend is payable at the end of tenure along with the amount of redemption of shares.

Thanks & Regards,

Avika Kapoor

Manager-Business Development

Kapgrow Corporate Advisory Services Private Limited

E-173, Kalkaji, New Delhi-110019

Phone: 011-4055 3774

Mobile: 9310270884

Thank you for your reply. Also kindly inform us which Section specify that Preference Dividend shall be paid at the end of tenure along with redemption.

Please also inform the meaning of "Tenure". Is it means end of each accounting year or month of redemption of Preference Share.

Cumulative preference shares mean preference shares on which dividend is being accumulated and shall be paid at the time of redemption.

Tenure here means the total period for which the preference shares have been issued and not each financial year.

Thanks & Regards,

Avika Kapoor

Manager-Business Development

Kapgrow Corporate Advisory Services Private Limited

E-173, Kalkaji, New Delhi-110019

Phone: 011-4055 3774

Mobile: 9310270884

Thanks for your reply.

Kindly clarify the following to me:

1) If Cummulative Pref Share tenure is 6 years, then in such case whether Pref dividend shall be accumulated for 6 years and then paid along with redemption.

2) Is it necessary that at every AGM Pref dividend should be declared or shall the Pref dividend be declared at the 6th year before redemption and thereafter make payment for both Pref Dividend and redemption.