Examveda
Examveda

When there is no profit in one year or the profit of a company is not enough to pay the fixed dividend on preference shares, the arrears of dividend are to be carried forward and paid before a dividend is paid on the ordinary shares. This is called:

A. Participating preference shares

B. Cumulative preference shares

C. Non-cumulative preference shares

D. Non-Participating preference shares

Answer: Option B


This Question Belongs to Law >> Indian Companies Act

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