LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Dividend to preference share holders

kamini Agrawal (Legal And secretarial Adviser) (25 Points)

27 September 2012

Hello friends,

just guide me that CAN public limited Co. declared dividend to prefrence shareholders in AGM.,even when it is not giving dividend to equity shareholders.......................

Regards

Kamini Agrawal

Reply
Follow
Share

6 Replies

RAMESH CHANDRA SHARMA (munka istentisztelet) (899 Points)
Replied 27 September 2012

I THINK IN PREPFRENCE SHARES ...THE DIVIDEND IS FIXES AT THE TIME OF THEIR ISSUE ......

SO QUESTION OF FURTHER ANNOUNCEMENT OF DIVIDEND DOESNT ARISE......

CA.Ankur Khandelwal (Owner) (281 Points)
Replied 27 September 2012

agree with ramesh

kamini Agrawal (Legal And secretarial Adviser) (25 Points)
Replied 27 September 2012

thankx Ramesh and Ankur for your comment

Aditya Soni (CS Final Student Trainee) (727 Points)
Replied 28 September 2012

Dear Kamini,

Dividend on prefrence shares are fixed already and company has to give dividend it the prefrence shareholders every year, even if not declared for Equity Shareholders.

Regards,

Aditya

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 28 September 2012

p. shares are cumulative or non cumulative???? dividend is fixed on shares at issue time, for addional dividend means declaration needed

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 28 September 2012

Agree with the learned members... A specified percentage of Dividend is decided at the terms of issuance of preference shares and even specified on the name of Preference Shares as 10% Cumulative Preference Shares and is given during the tenure of Preference Shares accordingly.