Hii All
Is there any max and min limit on the dividend to be payable to the preference shareholders??
Regards
Anoop kumar
(Article)
(570 Points)
Replied 17 February 2011
yes, you can get your exam form attested with any Member of ICAI.it is complusary.
further you can attach you Service certificate for completion of Articleship.
Sudhir Garg
(Service)
(236 Points)
Replied 17 February 2011
Dear Sakshi
As per my understanding, dividends rate on preference capital is used to be fixed before its issuance and dividends can be declared only at that fixed rate.
I dont think there is any limit of fixation of dividend on preference share.
Regards
Sudhir
nidhigoel89
(Company Secretary )
(594 Points)
Replied 17 February 2011
Hello!
Agreed with Mr. Sudhir's views as when u r issuing preference shares the % of dividend is prescribed bt in case when no % is described then there is no limit on the dividend..................Yes while declaring dividend you need to follow the Companies (Transfer of Profits to Reserves) Rules, 1975..............
Regards
Nidhi
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17848 Points)
Replied 17 February 2011
There is no such limits...
The Coupon Rate i.e. the rate of divided has to fixed at the time of issuance of Preference Shares.
Jayashree S Iyer
(Company Secretary)
(3224 Points)
Replied 17 February 2011
Agree with experts view. There is no such limits.
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