Ordinary resolution format for declaring preference dividend at the AGM under Section 123, with cumulative arrears, deposit in five days and payment in 30 days.
To consider and, if thought fit, to pass, with or without modification(s), the following resolution as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Section 123 and other applicable provisions, if any, of the Companies Act, 2013, the terms of issue of the [●]% [Cumulative / Non-Cumulative] [Redeemable / Compulsorily Convertible] Preference Shares of ₹[●] each of the Company (the “Preference Shares”) and the Articles of Association of the Company, and as recommended by the Board of Directors, a dividend at the rate of [●]% on the [●] Preference Shares for the financial year ended [●], amounting to ₹[●] (Rupees [●] only) [together with arrears of cumulative dividend of ₹[●] for the financial year(s) [●]], be and is hereby declared out of the profits of the Company and be paid to the holders of the Preference Shares whose names appear in the Register of Members as on [●].
RESOLVED FURTHER THAT the dividend shall be paid within thirty days from the date of this declaration, in priority to any dividend on the equity shares for that year and subject to deduction of tax at source under applicable income-tax law.
RESOLVED FURTHER THAT any Director and/or the Company Secretary of the Company be and is hereby severally authorised to deposit the amount of the dividend in a separate account with a scheduled bank within five days of this declaration, to make payment of the dividend and to do all such acts, deeds and things as may be necessary for giving effect to this resolution.”
No rules under this Section yet.