redemption of preference share capital

This query is : Resolved

janak (Querist)
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14 December 2010 a company is going to redeem it's pre. share capital after distributing the dividend.
there is some share on which some calls are in arears.....in this case,on what amount of share capital will com. distribute the dividends?????

Aditya Maheshwari

Aditya Maheshwari (Expert)
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14 December 2010 No dividend is paid on calls in advance or calls in arrears. The company is, however, authorised to make provisions in the Articles prohibiting the payment of dividend on shares having calls in arrears.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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15 December 2010 Where calls are in arrears, the company can make provision in the articles prohibiting the payment of dividends on shares on which full amount has not been paid. Otherwise dividend is payable only on the amount actually paid up.

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