12 December 2008
our Co. had paid dividend to Pref. shareholders for 2 continuing yrs without approving it at AGM. Is there any default? Now what step should be taken to rectify the error? plz also tell the penalty for Default.
Preference Shareholders are entitled for fixed rate of dividend. So i dont think there is a requirement as such. In my knowledge there is no necessity to take AGM Approval.
17 December 2008
ok sir i agree with your view that the dividend is paid at Fixed rate. but it is still a dividend in nature and payment of dividend requires Shareholders approval, and as such the payment of Dividend falls under the category of Ordinary business it can only be transacted at AGM.
CAclubindia
