Divident payment isMandatory for Fixed % Redeemable pref. share by Pvt Ltd Co. F Y 2021 2022

This discussion clarifies whether a private limited company is legally obligated to pay annual dividends on fixed percentage redeemable preference shares for the financial year 2021-2022. The consensus is that if these preference shares are cumulative, the company must pay any arrears from previous years before declaring dividends for equity shareholders. The focus is specifically on the mandatory payment requirement for FY 2021-2022.