Further issue of preference share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 February 2011 1)Is further issue section 81 of companies act applicable to preference share also.

2)A company did not pay any dividend to its preference share holders in 2009-10 due to shortage of profit. Can it issue more preference share in 2010-11.Please give reference of sections if any?

udit sharma

udit sharma (Expert)
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12 February 2011 1) Preference shares are also covered under section 81 of the Companies Act, 1956

2) Yes...you can issue further preference shares....there should not be any issue as such in my opinion...

Experts ur views please...

God Bless

CS Udit Sharma