The entity has raised preference share capital during the previous year and the nature of the same is 1% Redeemable, Cumulative and Covertible Preference Shares. Hence the dividend has been provided during the previous year in the books but unpaid during the current year. The provision for the current year has also been accrued. With reference to Company Law, Sec 205 restricts to equity shares only and does not mention about preference shares. I require someone to tell me as to whether there is any literature to support as to when the preference dividend is payable within a due date / is it statutorily mandated pay within a stipulated period?
CAclubindia
