Allotment of Preference Share

[siya parashar]

Dear All,

Can a Company issue preference shares with zero Dividend?

Thanks & Regards

Siya Parashar

[Rishabh Agrawal]

Yes absolutely. 

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[Anjali Sharma]

But As per my understanding, there should be a fixed rate of dividend, be it 0.0001 %

[Rishabh Agrawal]

No, it's not compulsory to provide any fixed rate of dividend.

The benefits can be given in the form of earlier Conversion or Redemption of Preference Shares or any other Exit Mode and by that the holders of such shares earn money by capital appreciation.

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