Preference shares

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Guest

Guest (Querist)

16 December 2010 hii to all,

can a dividend declared be waived off on preference shares???

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

16 December 2010 Yes,For eg. In Case of Liquidation of Company/ Capital Restructure.

Guest

Guest (Querist)

16 December 2010 other that that?

CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)

16 December 2010
As far i think dividend declare once cant't be waived coz once dividend declare become the liability for the company and it need to paid off ,
As Mr Ayush mentioned that it can be in the case of liquidation and reconstruction but that is not dividend in the real since it is final payment that a shareholder will get in the case of closer of the company .
Thanks

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

16 December 2010 Yes, if Company During its Life Time Can't Waive Off Dividend Declared Once.

Only at Time of Winding Up or Restructuring of Company

Ankur Garg

Ankur Garg (Expert)

16 December 2010 Agree with the above replies...can not be waived...

udit sharma

udit sharma (Expert)

17 December 2010 Hi...

Agreed with the experts...dividend once declared becomes debt of the company and its payment cantbe waived...

God Bless

Udit Sharma

Guest

Guest (Querist)

17 December 2010 CAN WE REDUCE THE % OF DIVIDEND?

Jayashree S Iyer

Jayashree S Iyer (Expert)

18 December 2010 The shareholders have the right to reduce the % of dividend recommended by the board at the GM. However if the dividend is approved in the GM and declared then it cannot be reduced for the same reason that once the dividend is declared it becomes a debt of the company.

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