Dividend on preference shares

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Is it compulsory to give dividend to the preference shareholders whether company earning profits or not????
Replies (5)
Whether company earn profit or not, first you pay preference dividend at some interest rate.

Sir, Plz provide me clarification in this regard ( any section or rules)???

Dividend can be declared only out of distributable profits.  If there is no profit, shareholders (whether equity or preference)  will not get any dividend. 

 

Thank you Sir for your prompt reply. I want to confirm one more thing, in case company do not have profits for 2 yrs or more and the company didnt declare any dividend for that period. Is perefernce shareholders get voting rights as per sec 47(2) of companies act 2013????

Yes, Where the dividend in respect of a class of prefrencee shares has not been paid for a period of two years or more, such class of preference shareholders shall have a right to vote on all the resolutions placed before the company.


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