Section 80 says that preference shares can be redeemed out of the profits otherwise available for the dividend. In general, dividend can be paid out of current year profit. Dividend can also be paid out of past profit but subject to certain conditions.
My questions :
1.Can we redeem Preference Shares out of Past Profits.
2. Whether entire accumulated profits qualified for redemption or the amount remaining after the conditions stiplutated for dividend is available for redemption.
Pl. see and reply.
Thanks
Saurabh Mittal
CAclubindia
