Section 87 of Companies Act says that a preference shareholder shall be entitled to vote on every resolution placed before the company at any meeting, if the dividend if the dividend due on such capital or any part of such dividend has remained unpaid- in the case of cumulative preference shares, in respect of an aggregate period of not less than two years preceding the date of commencement of the meeting.
In this connection, I wanted to know what if the dividend remains unpaid for two years due to inadequate profit or loss? The case is that since the company suffered loss it could not declare dividend. Would this be covered under 'unpaid dividend'? Is dividend not declared will mean 'dividend remaining unpaid' in this case?
In this case, will the cumulative preference shareholders get the same voting rights as that of equity shareholder?
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