Allotment of Preference Share

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siya parashar

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May 22, 2024, 1:51:53 AMMay 22
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Dear All,
Can a Company issue preference shares with zero Dividend?


Thanks & Regards
Siya Parashar

Rishabh Agrawal

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May 22, 2024, 2:07:47 AMMay 22
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Yes absolutely. 

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Anjali Sharma

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May 22, 2024, 2:12:32 AMMay 22
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But As per my understanding, there should be a fixed rate of dividend, be it 0.0001 %

Rishabh Agrawal

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May 22, 2024, 2:20:12 AMMay 22
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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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