Preference shares by sec.25 company

Sec. 25 Company is prohibited to distribute dividend and preference shares always carry some fixed rate of dividend

Is it not possible to issue Pref. shares without dividend payment ? I  mean to say whether Companies Act prohibits to issue Pref shares without dividend?

Originally posted by : RISHI
	Is it not possible to issue Pref. shares without dividend payment ? I  mean to say whether Companies Act prohibits to issue Pref shares without dividend?

yes !

As per Sec. 85,   Is it not possible to issue Pref. shares without dividend right with fixed amount or fixed percentage

and

now don’t say Fixed amount or fixed percentage can be Zero

Otherwise intention of law behind the Sec.85 will become meaningless and will amount to infringement of Sec. 85