Can a private limited company pay an interim dividend to equity shareholders without paying into preference shareholders of the co.
Also the private co. is mandatorily required to open a separate bank account with the bank.
2 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 03 March 2021
Yes separate bank account should be required to open.
Yes interim dividend can be paid
Yes interim dividend can be paid
Chirag
(Professional)
(1979 Points)
Replied 07 March 2021
No, I'm not agree, If Company is declaring interim dividend only to equity holders than it has to take approval of preference holder in separate meeting, except when such shares are with DVR, because as per vary nature, Preference shareholders have, preferential right over equity holders on dividend....
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