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When there is no profit in one year or the profit of a company is not enough to pay the fixed dividend…

Where unpaid preference dividends accumulate and must be paid before any dividend on ordinary shares, the shares are "Cumulative preference shares". Participation in surplus…

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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

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Where unpaid preference dividends accumulate and must be paid before any dividend on ordinary shares, the shares are "Cumulative preference shares". Participation in surplus profits is a separate feature that does not decide whether arrears accumulate.

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