Preference share

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CA Manish Sukhani (Querist)
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13 December 2011 Can preference share dividend be paid on pro-rata basis???
If yes than pls provide some legal support in this regard!!!!

Charu Srivastava

Charu Srivastava (Expert)
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13 December 2011 According to me the rate of Dividend is fixed in case of Preference Shares .... so there is no question of pro rata basis unless it is participating preference shares.

others views are solicited.

CA Manish Sukhani

CA Manish Sukhani (Querist)
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13 December 2011 Rate is fixed, its ok but if employed the fund for 3-4 month for the relevant financial year than how we cud pay the dividend for whole year???

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Guest

Guest (Expert)

13 December 2011 Since preference shares carry a fixed rate of dividend like 12% per annum, which is more or less like interest on debentures. So in my opinion if you are redeeming earlier than should pay on prorata basis.

Regards, Neha