Mehli B Mulla (Salaried Employee) (28 Points)
09 November 2009
I would like to know if a company is unable to pay any dividend on cumulative preference shares till redemption or if arrears of dividend are payable on the date of redemption, will the arrears of dividend lapse once the company repays the face value on redemption?
Avika, ACS
(HR Legal and Management Consultant)
(172 Points)
Replied 14 November 2009
In case of cumulative preference shares, the dividend is apportioned every year but is payable along with the principal amount at the time of redemption.
The amount is payable even if the shares are redeemed and the Company will have to pay it to the shareholder(s).
Thanks & Regards,
Avika
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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