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Divident payment isMandatory for Fixed % Redeemable pref. share by Pvt Ltd Co. F Y 2021 2022

Rajesh P. Dagdu (Associate with Chartered Accountant) (57 Points)

23 July 2022

Respected Sir/Madam,

Is it Mandatory to pay Dividend every year on Fixed % Redeemable Preferance Share by Private Limited Company which had not paid any dividend to its Equity Shares during F Y 2021-2022

Accourding to Companies Act 2013 with latest Amendment applicable for Financial Year 2021-2022

Thanking You

Rajesh Dagdu

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3 Replies

Chirag (Professional) (1979 Points)
Replied 23 July 2022

Depending on the kind of CCRPS/NCRPS if they are cumulative then it's an obligation of the company...that whenever dividend declared past due and current one will be paid first

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Rajesh P. Dagdu (Associate with Chartered Accountant) (57 Points)
Replied 23 July 2022

THANKS FOR REPLY

MY QUESTION IS FOR MANDATORY TO PAY DURING FINANCIAL YEAR 2021-2022 OR NOT MANDATORY IN FINANCIAL YEAR 2021-2022 FORGET ABOUT FUTURE EVENTS

Chirag (Professional) (1979 Points)
Replied 23 July 2022

I replied about past events itself ,if the kind of preference share is cumulative then you are obliged first , mean to say if dividend is not paid in 2020-21 and you are declaring in 21-22 then 20-21 will also be paid..