Rasesh
(CS CWA MBA (Fin) B.Com LL.B (Spl))
(6501 Points)
Replied 21 March 2010
When preference shares are issued during the year, then the dividend for that year has to be paid for those particular months only.
Kunal
(Article)
(84 Points)
Replied 29 March 2010
thank u rasesh...i thot so,,,,bt can u tell me wer exactly is dis provision given.....??? as in there's nothing specifically stated in d act regarding this acc 2 me...!!!
Rasesh
(CS CWA MBA (Fin) B.Com LL.B (Spl))
(6501 Points)
Replied 29 March 2010
The dividend rate for preference shares is pre-decided and the series of shares issued also state somethng like this: 10% RNCP Shares of Rs. ___ each.
10% is the rate per annum and hence when pref shares are issued during the year, the dividend has to be paid only pro rata.
CA Rahul Jain
(CA)
(1162 Points)
Replied 30 March 2010
| Originally posted by : Rasesh | ||
 |
The dividend rate for preference shares is pre-decided and the series of shares issued also state somethng like this: 10% RNCP Shares of Rs. ___ each. 10% is the rate per annum and hence when pref shares are issued during the year, the dividend has to be paid only pro rata. |
 |
Pratik
(Article Assistant)
(21 Points)
Replied 02 June 2011
Hey..i doubt this is the case..10% never means per annum..it always means percentage of FV to be declared as dividend..so could you kindly paste the source from which you gathered the information that it is per annum..interest is always per annum but dividend is always as a percentage of FV
CAclubindia
